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Rick Haglund: A big tax cut this election year comes with big tradeoffs for Michigan
High gas prices, bulging state coffers and election-year politics are likely to accelerate efforts by both political parties to cut state taxes. While Gov. Gretchen Whitmer and the Legislature haven’t agreed on tax cuts, they did strike a deal last week on a $76 billion state budget, and there is $7 billion in unallocated cash […]
Rick Haglund: Michigan’s economy is more diverse, but still too dependent on the auto industry
There’s been so much hoopla lately about Michigan’s auto industry making a radical switch to electric vehicles, you might think there’s little else happening in the state’s economy. But you’d be wrong. The vast majority of Michigan jobs are in health care, retail trade, finance and a variety of professional and business services, including accountants, […]
Rick Haglund: Indiana economist says focus on low taxes and less regulations has been a bust
Over the past few decades, Indiana has often been cited as a strong economic model for neighboring Michigan. Michigan economic developers, business lobbyists and mostly Republican lawmakers have long envied the Hoosier State’s business-friendly policies that include low taxes, light regulation and aggressive business attraction tactics. Those elements apparently helped Indiana best Michigan in winning […]
Rick Haglund: Threats to Michigan’s auto industry aren’t just coming from the South
Stunned by Ford Motor Co.’s decision to invest $11.4 billion in electric vehicle assembly and battery plants in Tennessee and Kentucky, Michigan in December created a $1 billion fund to lure new electric vehicle operations to Michigan. An even bigger concern voiced by policymakers and local economic developers was that aggressive southern states were going […]
Rick Haglund: Whitmer has a strong economy on her side as she seeks reelection
Democratic Gov. Gretchen Whitmer faces reelection this year during an extraordinary mix of economic, political and social conditions unlike anything most voters have seen in their lifetimes. The environment enveloping the governor’s race has it all: a booming economy, surging inflation, a brutal invasion of Ukraine by Russia that threatens to become World War III, […]
Rick Haglund: Changing parents’ attitudes about the value of college is key for the economy
Central Michigan University has long been known for giving low-income, middle-class and first-generation college students the opportunity to earn a four-year degree and lead a fruitful life. But the Mt. Pleasant university, like many other higher-education institutions across the country, is facing hard times. CMU’s enrollment has fallen a stunning 43% over the past decade, […]
Rick Haglund: Inflation, war in Ukraine could darken rosy Michigan budget outlook
Bob Schneider has worked on Michigan budgets for nearly 30 years, but said he has never seen as much money pour into to state government coffers as in the past couple of years. “These are unprecedented surpluses,” said Schneider, senior research associate for state affairs at the Citizen Research Council of Michigan. “It’s unusual to […]
Rick Haglund: Electric vehicles could upend auto dealer franchise laws
Critical shortages of computer chips used in cars and trucks are fueling a rift between automakers and their dealers, and the divide is likely to grow deeper as automakers make a radical shift to electric vehicles. Michigan will be ground zero in the fight to determine who will sell these cars and trucks. New automakers […]
Rick Haglund: Intel’s plans for the ‘Silicon Heartland’ in Ohio offer lessons for Michigan
It’s not often you see Michigan salute Ohio for a big win, but it happened recently in the competition for economic development. “Congratulations to our Midwest neighbor Ohio for landing an impressive $20 billion investment from Intel for leading-edge chip factories,” Business Leaders for Michigan, a group of CEOs from the state’s largest corporations, said […]
Rick Haglund: Mich. automakers need more talent to fend off competitors in coming EV era
The Motor City’s foundations shook a bit earlier this month when news broke that Japanese automaker Toyota blew by General Motors to become the top-selling manufacturer in the United States last year. It was the first time an auto company not named GM led annual U.S. car and truck sales in 90 years. That a […]
Rick Haglund: Rising prices aren’t slowing Michigan’s economic recovery. But omicron might.
Michigan’s economy is in shambles, the Michigan Republican Party would like you to think. The GOP’s key data point? Detroit-based Little Caesars has raised the price of its $5 Hot-N-Ready pizza by a whopping 55 cents, the first such price increase in 25 years. Michigan GOP spokesman Gustavo Portela blamed the price hike on “[President] […]
Rick Haglund: Will Michigan’s big tax incentive bet pay off in new auto jobs?
Michigan’s new economic development incentives, mostly designed to help Michigan better compete with other states for new electric vehicle assembly and battery plans, remind me of a hilarious scene in the 1996 hit movie, “Jerry McGuire.” McGuire, a sports agent played by Tom Cruise, is desperate to keep pro football client Rod Tidwell, portrayed by […]