What’s Wrong With Michigan: Opinion Leaders Advocating Silver Bullet Solutions

2009 November 6
by steve

This is a perfect illustration of what is wrong in Michigan. In our state, we have opinion leader such as Daniel Howes, in a major Detroit paper, advocating another silver bullet plan to get Michigan back on track economically. This happens way to often from many opinion leaders in our state (our governor is the worst offender). Via The DetNews (emphasis added):

No, this isn’t a call to green-light yet another nuke plant here. It’s a reminder that the Big Mitten still has the ability to make things. Climate-change politics and surging demand for electricity around the world are powering a nuclear renaissance, and states like Michigan — deep in engineering expertise, surplus industrial capacity and an established transportation infrastructure — could get a piece of that multi-billion dollar business.

But we’ve got to move fast.

Otherwise the jobs, the investment, the economic growth and the re-purposing of vacant industrial sites to supply parts for nuclear plant construction will go where they typically go: to Indiana, to Pennsylvania, to Tennessee, anywhere but here.

There is so much wrong in so few sentences. I’ll take this in order–

“No, this isn’t a call to green-light yet another nuke plant here”

Why not build nuclear power here? If we are going to be serious about rebuilding our states economy, one of the foundations is inexpensive, reliable electrical power. Furthermore, construction of real electrical generation capacity, nuclear or coal, will send a signal to business leaders and investors that Michigan is serious about growing our economy.

“Climate-change politics”

I can’t wait until we get grown up’s in charge of our state again. How can anyone advocate that a state develop it future economic strategy around a fad / hoax / scam and the day to day political fighting in Washington?

“surplus industrial capacity”

I always find this comment interesting. Henry Ford is famous for implementing the assembly line and standardized parts and the automotive manufacturing industry has grown from this concept. Michigan’s manufacturing base has grown around this concept for over 100 years and will not change overnight. Automotive manufacturing is successful when you are building millions of the same thing over and over for several years. Manufacturing 20 giant wind turbines or 5 even more massive turbines a year for nuclear power plants is not an ideal fit for Michigan’s manufacturing infrastructure.

“could get a piece of that multi-billion dollar business”

Rather than ‘could get’ how about taking care of what is already here? Focus on what we have first. When the business climate in Michigan is good for the companies currently in Michigan, more and more business and economic activity will follow.

“will go where they typically go”

What is required is an honest self assessment. For example, Tennessee has no personal income tax and is a right to work state. Taking Mr. Howes idea to set up a nuclear power plant component company, would you choose Michigan with it’s personal income tax, SBT tax, high property tax, dysfunctional state government and contended with labor unions? Or would you choose to set up shop in a state where you can avoid all that?

Volkswagen and Nissan made that evaluation chose Tennessee.

Opinion leaders such as Daniel Howes should avoid advocating sliver bullet solutions to Michigan problems and really start calling for solid fundamental economic principles and let Michigan’s economy evolve organically. Just as there was not a silver bullet approach when Michiganbecame an economic power house.

If we get back to the basics, Michigan will turn around economically quicker than most people expect.

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