What’s the Fix (WTF) for Michigan’s Economic Development?

• Statistics show Michigan is dramatically losing ground to other states in many fields, notably population and income levels. 

• Other states, notably Ohio and Mississippi, have notched much faster progress than Michigan through more innovative programs. 

• Solutions include making it easier to do business in Michigan, making Michigan more attractive to young people, and finding ways to establish economic progress not dependent on an annual political budget process. 

This “What’s the Fix?” panel left little doubt that Michigan is in a deep decline from its once-Top-10 leadership position. Population, income, and other measures lag behind those of most other states, even perennial rivals like Ohio. The panelists touched on the most important solutions, including reducing bureaucratic regulations and simply recognizing the dramatic scope of the problem. 

All panelists agreed that the “house is on fire” as Michigan lags far behind other states in population and income growth.  

As Business Leaders For Michigan’s Jeff Donofrio said, “When I graduated high school more than 20 years ago, we were 16th in the state in fourth-grade reading. Today, we’re 44th. When I was growing up in the 1980s, we were a top 10 state for income. Today, you know, we are 50th in income growth and 40th in per capita income.”

And corporate leader and adviser Sandy Pierce echoed that, saying, “I don’t think we’ve done a good enough job in this state really explaining what the issues are, and how bad it is.” 

Speakers agreed that Michigan imposes far too many bureaucratic obstacles to starting or running a business.  

“Public Sector Consultants, who are doing this work to actually interview people, have found multiple quotes of it’s easier to do business in the Middle East than it is to do business in Michigan,” Donofrio said. “It’s easier to do business in San Francisco than it is to do business in Michigan. That should scare the hell out of us.” 

And State Rep. Bill G. Schuette (R-Midland) spoke in favor of his bill that would refund businesses’ permitting fees when permits are delayed.  

“I think that would be the start of a culture shift of how we do business in the state,” Schuette said. 

Despite Michigan’s many advantages, the state continues to lag behind. As The Right Place’s Randy Thelen said, “We’re a resource-rich, asset-rich state. We’re not a small state, we’re not a tiny state, we’re not scrapping for research. We just have to have the leadership to pick the direction we want to go.” 

The What’s the Fix (WTF)? series is sponsored by PNC Bank.