Out of Control Policy Blog

Michigan Not Learning from Its Past Mistakes

Michigan has been a leading state in the past decade—a leading state in showing the rest of America how not to respond to economic downturns. With unemployment over 15% now, it is safe to say that the political populism of the Granholm era and otherwise hasn't worked out too well. Raising minimum wage to $7.15 in 2007 didn't help employment. Horribly designed tax incentives that didn't cut taxes but rather gave money away through credits or distorted the market with politically designed slices have been an anvil around the the state's neck. And the bailouts for the Big Three—state and federal—have only artificially increased the cost of labor.

Now my home state has a new idea... continue the practices of the old ideas. A new set of ballot initiatives would:

  • Increase the minimum wage to $10 an hour for all workers;
  • Impose a blanket moratorium on home foreclosures for 12 months;
  • Cut utility bills by 20 percent across the board;
  • Require all employers to provide health care to employees and their dependents; and
  • Increase by $100 a week—and extending for six months—unemployment benefits, while expanding eligibility.

(HT: Matt Yglesias)

Seriously, I can do little more than palm my forehead and try to shut out the ridiculousness with darkness. When if comes to what this would do to businesses in the Wolverine state, these proposals would be the equivalent of setting  someone one fire after you have kicked them after you have knocked them down.

Anthony Randazzo is Director of Economic Research

« Annual Privatization Report Examines Latest… | Main | Texas State Education Commissioner Calls… »

Comments to "Michigan Not Learning from Its Past Mistakes":

MJ | August 6, 2009, 6:58pm | #

What? No free pony?

Ugh. I actually hope this does pass. It will be a valuable lesson down the road about what not to do with economic policy.

fdvde | August 9, 2009, 5:06am | #

ed hardy
Ed Hardy Belts
Ed Hardy Wallets

RogC | August 9, 2009, 3:22pm | #

Ugh. I actually hope this does pass. It will be a valuable lesson down the road about what not to do with economic policy.

Unfortunately, as with so many previous lessons only a few will learn. Those who devise these fallacies will ignore the real results.

abercrombie polo | November 17, 2009, 10:20pm | #

Like other segments of the retail economy,abercrombie fitch Tees the restaurant industry has struggled over the past two years abercrombie fitch Sweaters as unemployment has soared and consumers have curtailed spending.abercrombie fitch Outerwears The National Restaurant Association's performance index shows that the industry has been shrinking for 23 months in a row.abercrombie fitch Hoodies High-end bistros have fared the worst, with sales at fancy restaurants like Ruth's Chris and Morton's Steakhouse off by 20 percent or more,abercrombie fitch Polos as corporate customers pare expenses and other diners trade down. Casual- and family-dining places have suffered too, as people eat out less, order more takeout, or cook at home. Even fast-food chains like McDonald's and Burger King have lost business, despite dollar meals and other deals meant to keep the fryers sizzling.

links of london | November 18, 2009, 1:38am | #

links of london sale Traffic is down at many locations, links of london jewelry but the company has been able to compensate by raising prices, links london Olive Garden. links of london Charms More food for less money hits the sweet spot these days, links of london Charm which makes the family-style portions at this casual Italian chain a hit with diners.

abercrombie | November 19, 2009, 1:32am | #

Of 41 firms on Capital IQ's initial list, abercrombie Pants only eight made the final cut. abercrombie Tees All emphasize value, whether it's huge portions or quality for less. abercrombie Shorts And all of these companies are financially healthy, abercrombie Sweaters with reasonable debt and the wherewithal to keep expanding despite a credit crunch. abercrombie Outerwears Here are the restaurants with the right recipe for lean times:It might not be good for America's waistline,

Out of Control Policy Archives