Economics in Action

Michigan has the highest unemployment rate of any state not hit by Katrina, is last in income growth last year, has lost more people to other states, and the highest business taxes. Could those facts be related? Could be. To make matters worse, the Governor, Jennifer Granholm, wants to take the money she raises with the high business taxes and recruit more smoke stack industries like the automobile industry. She, therefore, wants to tax the productive businesses and bring in more industries like the steel and auto companies who are going south. Those of us living in the South can expect more new neighbors from Detroit.