Republicans, including their presidential candidates, have been having a field day blaming Gov. Jennifer Granholm for Michigan's economic troubles. But a guest opinion in the Detroit Free Press for Friday (January 18, 2008) shows why the situation is bigger than state policy:
"Do Not Doubt China's Cars Are Coming," says the guest opinion piece by David Hemmings, chief executive officer of Pacific Rim Alliances.
The headline alone is enough to send chills down the spine of any auto worker. But Hemmings has details:
"Once the Chinese automotive industry is able to build a car that can meet U.S. emissions and safety standards, they will begin shipping cars by the thousands to meet our demand for cheap, cheap, cheap! Furthermore, Chinese automakers will be eager to sell here because their high-end vehicles will not be affordable to the Chinese population, but those products will sell here at a low U.S. price point and at a much bigger profit margin."
So when Mitt Romney says he's going to fight for every job, does he mean he is going to turn off the spigot of unfair trade that lets anything made in China through our ports? And do we really believe those Chinese vehicles will meet U.S. safety standards any more than Chinese pet food and toys do?
Chinese workers need jobs. Nations need to trade. But we can be more choosey about whom we trade with and the terms for doing so, just as China is. We can insist on workers' rights and decent wages in Chinese industries that sell products here. But that's not something any Michigan governor can do alone.
7 comments:
Are you kidding? The threat of cheaper foreign products is NOT A NEW PROBLEM. Doing nothing about it is, and that falls on the Governor's shoulders.
What about attracting NEW industries? and I don't mean in lieu of the auto industry. What's the hottest thing that is also promising to grow for decades and create a lot of jobs? Green technology. Other states are capitalizing on it. Why can't Michigan? A better question might be, why won't Michigan?
The Federal EDA (Economic Development Admin) grants money to communities and they can use it to create business incubators. How do I know? I used to work for the EDA and saw how business incubators acted as the seed to improving an economy. They work!
Any way you slice it, it boils down to jobs. Without jobs, people don't have money to spend and that means less money going into the economy. But you can't take MI tax dollars and give them to the poor who in turn buy things and put it back in the economy - that just cycles the same money - and with businesses and people leaving this in droves we aren't bringing in new money. MI is relying on Federal government handouts so it can then give that money to its poor citizens instead using it to create jobs.
Instead of creating jobs, Michigan's administration creates welfare programs. It spends resources on how to give people a hand-out. Do you know that in Michigan a low-income parent can collect hundreds of dollars a month for a child diagnosed with a learning disability like A.D.D.? The idea is to give parents money so they can stay home and care for the child, who happens to be in school all day. Ridiculous isn't it. I'm a landlord with executive rentals (nice properties like with granite countertops, outdoor kitchens, 3 car garages,... you get the picture ). Single mothers call me about renting and when I ask about their source of income too often hear "I've got 2 [or more] kids with A.D.D. and get over eight hundred a month for them, plus I get Sec 8 [or welfare or SSI, etc]." Michigan has given this woman a job of caring for her own kids and paying her $800 a month to do it. They "get" money - not "make" money! More potential renters call with a story like that than with a decent job. It always strikes me as odd that people who don't/won't work can afford an executive rental and the state pays for it.
And you think the economy is in trouble because of the threat of cheaper foreign cars and not ridiculous hand-out programs like this, or the fact that the governor is paying more attention to giving away money than bringing in jobs?
Great points.
Im no political expert by any means. All I know is im hurting and treading water to keep from going backruped. I own a small family owned construction company. This Michigan economy has went straight into the toilet since Granholm has been in office. Her and her administration are not doing there jobs. Period................. Michigan is a majority democrat state. And that is how she got voted back into office. Democrats do not care about what she has done they just don't want a republican in office. The point being there just to blind to see how her policies have ruined this state. I believe we should follow in Californias footsteps and impeach her before it's too late. No wait it's already too late. So we need to start with a new govenor and get her impeached and out of here. All I see on the news and read in the papers is more and more busineses leaving this state. I just found out the other day that I will have to pay almost 500 dollars to re-new my builders licence. My last renewal was a bit over 100 dollars. I called Lancing to see what that was all about and they couldnt realy answer my questions. I believe Granholm and her cronies have decided to hit all the builders for more money. Oh God just what I needed more escalating cost. It is out of control. I am seriously considering moving out of this state. It's too bad I have lived here all my life. I love Michigan but if Granholm can't do something possitive soon I have no choice. Let's impeach and get a new start.
I completely agree with you Karl!
I couldn't agree more with the 1st post by anonymous. Blaming China for Michigan's inadequacies is the kind of attitude which got us into this mess. I have a grad degree in Aerospace engineering. Like most engineers in Michigan I was unable to find a job in the state and therefore forced to move. What do you expect when your highly educated workforce who are more likely to start businesses have to leave the state?
wow, big surprise, trying to pass the blame of a liberal onto the right.
Republican or Democrat cannot deny... since Granholm has been in office, Michigan has been experiencing a steep economic decline.
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