Michigan remains mired with middling ranks among competing states in current and future economic well-being, according to several measures. The good news is that our recent recovery has been a positive one but there is more to do. The state has not completely recovered economically from its one-state recession that effectively lasted from 2001 to 2010. Indeed, Michigan’s payroll numbers are down nearly 263,000 since the 2000 peak.
Michigan was the only state in the union to lose population on net balance during the 2000s. From 2000 to 2009, Michigan saw one of the worst per capita personal income drops of any state since the Great Depression. From 2006 to 2009, we led the nation in people moving out of the state as measured by the percentage of moves by United Van Lines, the nation’s largest mover of household goods and services. Outbound traffic made up a higher portion of the company’s business in Michigan than in any other state in the lower 48 states. Mackinac Center research has shown UVL data to be very highly correlated with actual Census data. The number of people receiving food assistance and other government benefits skyrocketed.
Things have improved since our economic nadir but we are still losing population to net domestic migration, just more slowly. If we want to make Michigan a destination state again, we have to make it an opportunity state again. We do that by making it less costly to work and live in Michigan. We do that by rolling back the state personal or corporate income tax and leveling the playing field for businesses.