'America has to wake up,' former Gov. Granholm tells crowd at Michigan Theater in Ann Arbor
Former Gov. Jennifer Granholm signs a copy of her book for Ann Arbor resident Jan Adams-Watson in the lobby of the Michigan Theater. "I thought it was great," Adams-Watson said of Tuesday's event featuring Granholm and her husband discussing lessons learned in the fight for jobs in Michigan.
Ryan J. Stanton | AnnArbor.com
Not in a global economy where overseas workers can make $1.57 an hour, she told a crowd of about 400 people gathered Tuesday night inside the Michigan Theater in Ann Arbor.
"A business' responsibility is to maximize the shareholder return, and you're going to invest those extra dollars where you can maximize the return," she said. "And that return isn't going to be maximized nowadays in the United States. It's going to be maximized elsewhere."
Tuesday's event marked the first stop Granholm and husband Dan Mulhern are making as part of a national tour to promote the couple's new book, "A Governor’s Story: The Fight for Jobs and America’s Economic Future," which went on sale this past week.
As she did on The Daily Show last week, Granholm used Michigan as an example of why cutting taxes and reducing the size of government doesn't necessarily create jobs. She admits she tried that as governor and learned the hard way that it doesn't work.
"If that laissez-faire, small-government and trickle-down theory were effective, we would have the most robust economy in the nation," she said, noting Michigan cut more spending and reduced its corporate tax burden more than any other state over the past decade.
"America has to wake up," Granholm said. "The old strategies are not doing us any favors in a new global economy. We have got to see active government — not big government, but active government — so that we get jobs created in America."
After a spirited conversation on stage, Granholm and Mulhern took several questions from the audience before signing copies of their book in the theater lobby.
A woman who identified herself as a recent University of Michigan graduate asked Granholm what she sees as a constructive solution to the nation's political divisiveness.
"I believe that compromise is always the best solution. You're never going to get 100 percent of the loaf," Granholm said. "But if you don't have somebody on the other side who's willing to give you a crumb … then I think you have to take the gloves off."
Granholm said voters should feel empowered to go to the ballot box and seek "sweet revenge" by voting to get rid of politicians who refuse to compromise.
After leaving office, Granholm and Mulhern were hired this year to teach at the University of California-Berkeley, where Granholm completed her undergraduate studies. An audience member asked Granholm if she had plans to move back to Michigan or seek higher office.
"I'm not running for office again," Granholm responded. "And we are on a sabbatical in California. We have a two-year contract with the University of California-Berkeley."
"In terms of the future, the investment in higher education and access to it is so fundamentally important," she said.
Granholm and Mulhern both said the United States can't compete on low wages in a global economy, so it must invest in education.
"It's all about education," Mulhern said, expressing hope for dramatic educational reform. "I think the biggest mistake we can make and will make is if we don't invest in education."
Mulhern talked about the couple's time in Lansing, where Granholm served as governor from 2003 through 2010 following a four-year stint as attorney general.
"To be governor was really an extraordinary thing. It was very hard for us as a family … and very challenging as Michigan went through what it went through, and as Jennifer strove to make a difference day after day," Mulhern said. "But we never ever regretted that."
Granholm recalled the economic downturn that hit Michigan just before she took office. She said Michigan never came out of what was then a one-state recession.
"We were on the early edge of what the nation is experiencing now, which is this persistent joblessness," she said. "And why? Because the structure of our economy has changed due to globalization."
Granholm said tens of thousands of American factories have closed in the past decade, taking millions of jobs away, while millions of jobs have been created overseas.
She recalled a time she moderated a panel of multinational business CEOs. She said she asked what impacted their decision-making and none of them said state tax policy.
"If you don't have tax policy that is tied to job creation in the United States," Granholm said, "you may be in effect facilitating the flight of capital and jobs somewhere else."
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.
Comments
Mike K
Mon, Oct 3, 2011 : 8:44 p.m.
Ok, salient points are that lower tax are not the answer, but education and active government are. I guess I'll have to read the book for further details because it's really vague. I once had this liberal friend in education whom I asked this rhetorical question, "if you spend $1,000,000 to educate 99% of the people, or $2,000,000 to educate 100%, which do you choose?" He chose the latter saying it is good for society. I chose the former saying that it's good for society. In as much as I would like to reach everyone, all have to pay for it. Some do not value education. Lastly, education is portable. The educated go where the jobs are - just like I did in 1991 when I relocated here.
rjchampagne
Wed, Sep 28, 2011 : 7 p.m.
Gov. Granholm forced 500-750 million into advanced battery development that will be the next renewable energy debacle to blow up, its name A123. What government needs is productive labor,that is labor that pays the government. What we have is unproductive labor that takes from the government. Government can not function without private enterprise supporting it. NO MONEY NO PROGRAMS FOR ANYTHING.
Fatkitty
Wed, Sep 28, 2011 : 6:45 p.m.
"A business' responsibility is to maximize the shareholder return, and you're going to invest those extra dollars where you can maximize the return," she said. "And that return isn't going to be maximized nowadays in the United States. It's going to be maximized elsewhere." Therein lies the problem. Greed. US business and manufacturing needs to be brought back to the US. The situation we're in didn't happen overnight. Likewise, the solution will take YEARS, if it comes at all.
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 6:26 p.m.
braggslaw wrote: "The damage she did to Michigan (through both action and inaction) will take a decade to repair" Examples of the damage she caused, please. And let's be precise. Show how something she DID damaged the state. And in your analysis make certain to account for the Republican-controlled legislature's role. I won't be holding my breath waiting for a logical and fact-based reply. Good Night and Good Luck
Edward R Murrow's Ghost
Thu, Sep 29, 2011 : 2:30 a.m.
As always: No links to support so-called "facts" As always: Nothing about the responsibility of the Republican legislature. GN&GL
braggslaw
Thu, Sep 29, 2011 : 1:37 a.m.
Translation the govt knows what is good for me and can make better decisions on how to spend my money than I can Economic narcissm was jennys biggest fault and it killed the state
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 9:58 p.m.
"Most business leaders of either C-type or S-type/LLC's support the reform." Translation: It's OK to pick winners and losers so long as the losers allegedly approve. Of course, we need to take this with a grain of salt--no link. And given the misunderstanding of the SBT and the MBT . . . . GN&GL
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 9:28 p.m.
1) The SBT was in existence when Governor Granholm was in office. Engler was governor for the 12 years before and he had a pliant legislature. They did nothing to it. It was enacted in 1975 with a Republican Governor and a Republican legislature. Check page 7 of: <a href="http://house.michigan.gov/hfa/PDFs/singlebusinesstax.pdf" rel='nofollow'>http://house.michigan.gov/hfa/PDFs/singlebusinesstax.pdf</a> 2) Allegedly blocked a water facility (no link)--yeah, that ruined the state. 3) And then that brings us back to the RTWLDF's "charges" about day care workers. That ruined the state, too. 4) One would have thought that if the evidence were so clear, it would have been more compelling. Day care workers. LOL. 5) And still nothing about the legislature's responsibility for the state of the State. Again, not at all surprising. Good Night and Good Luck
braggslaw
Wed, Sep 28, 2011 : 9:26 p.m.
Most business leaders of either C-type or S-type/LLC's support the reform. A simple fair tax system that is what businesses want Virtually every business group in the state — including Business Leaders for Michigan, the Michigan Chamber of Commerce and the Small Business Association of Michigan — strongly support the tax cut.
braggslaw
Wed, Sep 28, 2011 : 9:19 p.m.
What the day care workers were forced to do was symptomatic of the Granholm administration. Force people to do things they did not want to do and were bad for the state... e.g. pay more taxes, join unions, hinder charter schools etc. Society flourishes when people have choices. I think the SBT tax has been beaten to death but.... oh yeah the SBT tax She prevented a new water facility on Lake Saint Clair (blocked by Detroit) . Etc. Etc. Etc.
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 7:51 p.m.
1) Forcing day care workers to join a union destroyed the state? Really? 2) The critical sentence in the first link reads: "The lawsuit, filed by the National Right to Work Legal Defense Foundation, claims that Gov. Jennifer Granholm (D) and her administration cleared the way for the union in exchange for valuable political support from the UAW and AFSCME." The critical word in that sentence is "CLAIMS". Yeah, the RTWLDF would never just make it up, would it? 3) Government picks winners and losers in any action they take. The Snyder tax reform decided S-stype corporations would be winners and C-type would be losers. Such a charge thus smacks of ignorance of what government does or, in the alternative, of someone with an agenda, or both. 4) Most of the manufacturing stats you cite reflect what happened to the auto industry and to its suppliers. Only someone with an ax to grind would blame the auto industry's decline on the governor of Michigan. 5) So, the only actual thing Governor Granholm DID according to you was the allegedly forced day care workers to unionize. Yeah, that just ruined the state. 6) Not surprisingly, you say nothing about the Republican legislature's role failing to deal with the state's economic woes. You are aware, aren't you, that the legislature has some powers and responsibilities in the state government? GN&GL
braggslaw
Wed, Sep 28, 2011 : 6:49 p.m.
Forcing day care workers to join the UAW <a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/09/13/AR2010091300088.html" rel='nofollow'>http://www.washingtonpost.com/wp-dyn/content/article/2010/09/13/AR2010091300088.html</a> Picking winners and losers (ultimately Snyder fixed this issue) <a href="http://www.taxfoundation.org/blog/show/2053.html" rel='nofollow'>http://www.taxfoundation.org/blog/show/2053.html</a> Granholm can be proud of her accomplishments: •A precipitous decline in the relative wealth of its residents. Since January 2003, Michigan's per-capita personal income rank among the states has dropped from 23rd to 37th. Our personal income is now $5,259 (13.1 percent) below the national average. •A large decline in economic output as measured by state Gross Domestic Product, dropping from 26th at the start of the Granholm administration to 41st through 2008. •A dramatic increase in unemployment. Michigan's unemployment rate leapt from 6.7 percent in January 2003 to 14.6 percent through December 2009. The state has had the highest unemployment rate in the nation for 46 consecutive months. •Record setting out-migration. The U.S. Census Bureau reports that Michigan has lost population for the last four years in a row and was only one of two states to lose population last year. More than 87,000 people migrated from the state between July 2008 and July 2009 alone. United Van Lines — a household moving company — reports that 68 percent of all its Michigan-related traffic is outbound
braggslaw
Wed, Sep 28, 2011 : 6:11 p.m.
The damage she did to Michigan (through both action and inaction) will take a decade to repair. She did not have the skills to lead, nor did she have any strategy other than to pacify her union base. She was a disaster to the state and I hope never to hear from her again.
Ron Granger
Wed, Sep 28, 2011 : 5:34 p.m.
This is the same Jennifer Granholm who fought for Whirlpool executives turning a *public* beach into a private Jack Nicklaus golf course and condo development. Of course those same Whirlpool execs have moved all manufacturing out of Michigan. <a href="http://www.savejeanklockpark.org/" rel='nofollow'>http://www.savejeanklockpark.org/</a>
Laurel
Wed, Sep 28, 2011 : 4:50 p.m.
From viewing the comments on this page, I am glad that I am the future of this state, whereas many of the ignorant masses are older and will die off and will no longer tout off on the politics they clearly have no understanding of. I almost feel there should be an intelligence restriction on voting so things don't get so polluted like they are now. Few of these comments have any real understanding of what happened in this state politically and economically that created the current situation. Also humorous are all the takes on this book. I have not personally read it, but have read enough reviews and seen enough interviews talking about the book to know it is not what many allege it is. Funny how so many are quick to speak about a book they pledge never to read. If you don't know what you're talking about, close your mouth. Knowledge is power, you should pay attention to things politicians from all sides say and do. Not just the side you dislike. Can't make fully educated opinions if you only allow yourself to be half-educated. I urge you, read a real book, get off the computer and stop passing on the ignorant comments that have no basis in reality. Just because you think it so, doesn't mean it is right or accurate. Gasp! We're not the know-it-alls we profess to be!
Mike Martin
Wed, Sep 28, 2011 : 5:25 p.m.
Oh man you criticize older people and revel in the concept that they will "die off", follow that up with a proposed restriction on voting rights, and then go on to call other people's comments "ignorant"? "Wow" is all I can say to that without posting something that aa.com is likely to censor. BTW - In case you want to apply your age issue to my response- I am 34 Laurel.
Stephen Landes
Wed, Sep 28, 2011 : 4:32 p.m.
Jenny and Dan are in their element in Berkeley. Now we just have to make sure they stay there.
Paul Taylor
Wed, Sep 28, 2011 : 4 p.m.
I find it interesting that so may posters here forget that the governor does NOT work in a vacuum (remember the legislature, and its role in state government?). She had a Republican legislature. They sent her the laws to sign.
Thaddeus
Wed, Sep 28, 2011 : 11:37 p.m.
Very very true. While Granholm's record certainly is not free of critism, she inherited Englerville. She had a Republican legislature in the State, and the illegally annointed Bush Regime at the Federal level. I think a lot of parallels can be drawn from the hand Granholm took Office having to play and that that Pres. Obama came into Office having to play. Regardless who was elected to play it, it would not be pretty and that person would get blamed for what was mostly done before they got there.... People too often have extremely short attention spans. People vote for Republicans, who too often are pushing tax cuts for the rich, tax increases on the poor, and trillions more in waste for illegal war. Then the Democrats are brought in and get blamed regardless as the economy continues to worsen from everything the Republicans did wrong. So people dissatisfied go out and vote for the Republican song and dance again, the economy worsens yet more, and the cycle repeats itself.... The economy has been so train-wrecked now that we have been in Great Depression II for over a decade and if the Feds were to come out and truthfully say how bad it is, what little non-existent value in the U.S. dollar and economy would probably implode. Too bad the most notable thing that can be learned from history is that most do NOT learn from history....
AA
Wed, Sep 28, 2011 : 3:42 p.m.
I did wake up and I voted for Govenor Snyder. Granholm bolted Michigan ASAP post election, what a love for the state. Now she profits in book form off her bad politics. Shame on her.
Laurel
Wed, Sep 28, 2011 : 4:39 p.m.
I wouldn't go boasting about Snyder. Have you seen what he's doing to the schools?? Oh I forgot, we don't respect our teachers anymore or the schools. We blame them for our lack of interest and lack of parenting instead of taking personal action and responsibility. Kinda like politics too now that I come to think of it.
Mike Martin
Wed, Sep 28, 2011 : 3:39 p.m.
I can't imagine anyone buying and reading a book by Jennifer Granholm. What could possibly be learned from her thoughts on what happened in Michigan while she was governor and what the future for Michigan is? I haven't looked to see who published her book, but I'll bet money a small run is planned. A waste of paper and I'll bet very few people will waste their money and time on it.
81wolverine
Wed, Sep 28, 2011 : 2:54 p.m.
I'm not even going to get into Granholm's REAL record on job creation and economic policies as Governor - others have addressed that already. But, I do somewhat agree with her point that simply cutting taxes does not create jobs by itself. I'm a believer in a free market system, but only to a point. We've all seen the disastrous consequences when there is a lack of government oversight and control - real estate and banking for example. More to the point, I believe the globalization of world trade that was encouraged by the politicians in this country resulted in the loss of millions of jobs that will be hard to ever get back again. This would have been OK IF a) the trading and flow of goods was fair between all countries, and B) the U.S. had a plan B for what we were going to do with all the unemployed people resulting from exporting jobs overseas who now don't have the job skills that match available jobs. IMO, the U.S. needs to develop some sort of national economic plan that is closer to what they are doing in Germany. Decide the industries that the U.S. has a competitive advantage in over other countries and develop/encourage those industries as much as possible. And like someone else pointed out, we can't be afraid to invest in new or improved infrastructure that will give us a strong return over the long run.
Stephen Landes
Wed, Sep 28, 2011 : 4:35 p.m.
Just a reminder that Plan B was something called TRASOP -- Trade Readjustment Assistance etc designed to train people who lost their jobs due to trade changes. I wonder how many people actually took advantage of that assistance and how many of those trained for technical jobs that would suit them for the value-added manufacturing we do here so well?
Bogie
Wed, Sep 28, 2011 : 2:52 p.m.
I would not totally blame Ms. Granholm for the complete meltdown of our state's economy. There would have been a slump, no matter what. Her statement that she used "trickle down" economics to combat the downturn, is laughable. It seems, that Ms. Granholm has very little character. She tried, and failed, but she cannot stand by her actions. All the rhetoric out there, and yet no mention of the trade agreements, that are stripping our country of wealth. Both republican and democrats are to blame for this mess. Neither party will address the true reason, we are in this mess. Ross Perot said it best, "People, Washington politicians are in the back pocket of foreign lobbyist."
eric
Wed, Sep 28, 2011 : 1:22 p.m.
Jenny wrote a book on job creation? ROTFLMAO!!!!
Laurel
Wed, Sep 28, 2011 : 4:37 p.m.
Nope, you clearly don't understand. It's not a book on job creation. Read the article and do some research about the book to clarify.
nixon41
Wed, Sep 28, 2011 : 1:08 p.m.
Where was SHE when it was time to WAKE UP? She needs to go back to Canada where she came from.
bobzv
Wed, Sep 28, 2011 : 1:03 p.m.
The business tax issue is minor, if not obviously phoney. MI state government has wasted years on this debate. Large factors like global wage pressure are obviously much more significant in terms of explaining current realities. Granholm is correct here, and it's refreshing to see someone getting to the heart of the matter. I hope her message gets some traction.
Top Cat
Wed, Sep 28, 2011 : 12:58 p.m.
For sure, Michigan woke up in 2010 and trounced the guy who would have given us 4 more years of her policies of the stagnant quo. She needs to leave the stage.
njoy1
Wed, Sep 28, 2011 : 12:45 p.m.
"At one point during Tuesday's discussion, Granholm expressed regret for some of the higher education cuts that went through while she was governor...."I think the biggest mistake we can make and will make is if we don't invest in education."" 20/20 hindsight eh?. She's just now recognizing that!? She could have pushed more on that point in her last term! Glad she regrets the mistake but really she's a dollar late and a dollar short.
clownfish
Wed, Sep 28, 2011 : 12:39 p.m.
Not one person really addressed her statements. Tax cuts do NOT create jobs. We see as Snyder cut the MBT, unemployment went up the last few months. The so called "Bush tax cuts" have been in place 11 years, where is the job creation? Companies and their boards/share holders shipped jobs overseas to get cheap labor, now those former workers do not have the money to spend to create jobs. If a 15% rate on capital gains created jobs, then all of that return from moving jobs overseas should have led to job creation. Where are those jobs? China, Bangladesh, Malaysia, Vietnam etc. I remember how NAFTA was going to be an economic boost to MI. Oops. Sorry about that.
Mike
Wed, Sep 28, 2011 : 8:28 p.m.
NAFTA was predicted by Ross Perot to lose millions of jobs. He described it as a "giant sucking sound" as ourjobs went to Mexico. I always wonder if he had been elected and not demonized by the press if we would be in the situation or career politicians have put us in. We'll never know since we keep electing people on everything but their real business related qualifications. Bring on "The Donald"...........
gsorter
Wed, Sep 28, 2011 : 6:29 p.m.
Don't forget the primary causes of the Depression, Smoot-Hawley, beggar thy neighbor, etc
kmgeb2000
Wed, Sep 28, 2011 : 5:09 p.m.
@gsorter: Let remember that protectionism was not the sole cause of the Great Depression. "Causes of the Great Depression are widely debated but typically include a weak banking system, overproduction, bursting credit bubble, the fact that farmers and industrial workers had not shared in the prosperity of the 1920s, and a government-held laissez faire policy." Sounds very familiar to today's issues. Also remember that the depression started in 1929 and for the next three years, the president was Herbert Hoover (Republican) and FDR wasn't elected until the fall of 1932.
gsorter
Wed, Sep 28, 2011 : 1:19 p.m.
The MBT tax cuts aren't implemented yet. Of course unemployment went up the last few months, there is too much uncertainty with our current federal taxes, European debt, and our debt. I plan on hiring when the tax cuts take place Jan 1. And remember, protectionism led to the Great Depression.
AMOC
Wed, Sep 28, 2011 : 12:22 p.m.
Yes, Jenny, America urgently needs the same wake-up call that Michigan got in 2010, to assure similar results for the nation in the 2012 election. I'm looking forward to Obama seeing the same sort of election results as Gov. Granholm's hand-picked successor. Preferably without having to wait through Obama's second term. Here's hoping for all our sakes that the nation as a whole can learn from Michigan's experience with the Democrat's ideas on industrial policy, and replaces our Solar-Energy-Stock-Picker-In-Chief as soon as legally possible.
clownfish
Wed, Sep 28, 2011 : 12:42 p.m.
How quickly people forget. Here are a few of Bush's "picks": Halliburton, doing well, but how much graft fraud and abuse did you pay for? Iraq: $3,000,000,000,000 ENRON: Bush's good friend "Kenny Boy", tax breaks and De-regulation. Pick up a copy of the new book "We meant well".
B2Pilot
Wed, Sep 28, 2011 : 12:16 p.m.
She AND her husband have a 2 year contract with Berkley; now their on a sabatical?? how does that work?? She left out of her book her relationship with Kilpatricks and the millions she gave them. Oh and she left out Clinton's signing of NAFTA which guaranteed those Union jobs went over seas. A sabatical from a temporary teaching job when school just started, hmm what did they say about needing more education?? Her and Kwayme drove this state into the ground
Mike
Wed, Sep 28, 2011 : 11:51 a.m.
We like to elect people based on race or gender anymore and then cry and whine about the outcomes. Running the government requires decisions to be made; the types of decisions made by "heartless" business people every day to stay financially solvent. "Granholm recalled the economic downturn that hit Michigan just before she took office. She said Michigan never came out of what was then a one-state recession." Her recollection is a lot diferent than mine. Business was good when she took office and decreased by 70% during her tenure. Rules, regulations, taxes, and fees where the name of the game. My builder license when up ten-fold under her administration as one example.
Laurel
Wed, Sep 28, 2011 : 4:32 p.m.
Prices go up as time goes on, as pay goes up and the cost of living increases. I don't see anyone complaining they cant get a Big Mac and a coke for 25 cents anymore but everyone seems to complain that the price of this or that went up, my taxes went up, boo hoo. We have more issues and larger population than we did in the 90's. It's time to get with the times and issues of the current day.
james
Wed, Sep 28, 2011 : 1:08 p.m.
"Millions of people, including me, voted for Granholm and Obama" Yeah, well, I saw tons of people on the street being interviewed during the Obama campaign that said they were voting for him because he was going to be "the first black president". The truth is, many people voted for him based on his beliefs, but there were also many people that voted for him based on race.
ArborMeow
Wed, Sep 28, 2011 : 12:30 p.m.
"We like to elect people based on race or gender anymore and then cry and whine about the outcomes." This statement is a) grammatically incorrect and b) completely sexist and racist. Millions of people, including me, voted for Granholm and Obama (I assume that's who you're talking about in bringing up race) because we thought they were the best option. While I'm not entirely thrilled with either of their performances, this is in no way reflective of their race or gender! I feel so sorry for you that these "other" people are challenging the white male hegemony of elected authority!
RayA2
Wed, Sep 28, 2011 : 11:30 a.m.
Slick should be paying close attention to former governor Granholm. But of course he couldn't possibly do that and continue to please his top 0.01% targeted constituency. No, slick will be working on more and better ways to take money from education and basic services and throw it at the wealthiest in this state. He'll just keep telling the suckers in this state that cash will trickle down as jobs to the rest of us. I have to say that those who still believe in this fairy tale are awfully patient. How many years ago did W promise us the trickle down from his capital gains tax cuts?
Laurel
Wed, Sep 28, 2011 : 4:29 p.m.
Wow. You don't really get how it works do ya james?? Small businesses are not run by the wealthy and they still have to pay their employees, I assure you they're not being sponsored by a philanthropic richy-rich. If you're working and you utilize gov't assistance of any kind, you too are paying for it. Sorry bubba, our population is growing larger than we've ever been and we need to accommodate that with taxes. Simple math. All those folks who want to continue operating under taxes from the 90's are so out of touch. We no longer have the population or issues we had in the 90's. We've grown, as a society and business-wise as well. Time to accommodate it. America needs to get with the times and grow up.
james
Wed, Sep 28, 2011 : 1:04 p.m.
Yeah, well, if you work at any job in any state in the US, it's because of someone wealthy. They run the business that is making enough money to pay you. If you utilize any service from the government, it's the result of someone wealthy. They pay the paychecks which in-turn pay the taxes to pay for your government services (they also pay taxes). I don't know what you are expecting with the "trickle down theory". If you think everyone is going to get free money, then think again. It was never supposed to work this way. The government doesn't deserve more money until they can figure out how to efficiently spend the money that they do have. I don't know why people propose we throw more money at an entity that is proven to just waste it. If the government was a business, they would have gone under in a couple of months. The only reason they can continue on is because we are essentially forced to pay them or risk going to jail.
Les Gov
Wed, Sep 28, 2011 : 11:24 a.m.
Why can't Jenny just stay in California? She had two terms and runs out on Michigan the second she gets the chance. If her policies were so great why doesn't she still live her? If she cares so much for this state why doesn't she still live here and help to make it better? Lets be honest, her terms as governor were nothing more than a way for her to collect a paycheck. She doesn't care about this state. Who would buy her book?
Stephen Lange Ranzini
Wed, Sep 28, 2011 : 11:07 a.m.
The Financial Times of London noted in a front page story a few months ago that the U.S. Is now the lowest cost place to manufacture goods in the world. This is because of the low value of the dollar combined with the high productivity of American workers and the low cost of transportation to the American market. Michigan is now the lowest cost place to manufacture in the U.S. Once a container is on a ship it can go anywhere in the world relatively cheaply and Michigan is blessed with natural waterways to move goods cheaply. However, to export, the 30,000 manufacturing firms based in SE Michigan cannot take advantage of the lowest cost means of shipping goods globally which is via container based shipping over water. Why? There is no container port on the Detroit River, or anywhere in Michigan. To ship and export products, today one must send them via rail to either Chicago, where they sent by boat around Michigan under the Mackinaw Bridge and then to days later passing Detroit on the way down the St. Lawrence Seaway, or to ship them via rail to either Montreal or Halifax Canada. When the city of Monroe wanted to build th first container port in Michigan, Governor Granholm fought it and blocked it for political reasons as a favor to her allies in Detroit. So, I think the real story is a lot more complicated than what she says it is. All the Democrats who served in Lansing during the Granholm Adminisitration were very frustrated with Governor Granholm (they told me) because they would learn of her new ideas for government laws or initiatives when she had a press conference to announce them. She never vetted her ideas with the leaders of the legislature, not even her allies and as a result, her ideas were always not well thought through and she couldn't get anything passed through the legislature. She is a great example of why electing a lawyer to run a huge enterprise is a bad idea.
Stephen Lange Ranzini
Wed, Sep 28, 2011 : 4:46 p.m.
@nyx: sorry I linked to the wrong article at ft.com: Here is the one from a few months ago I had seen: "US groups weigh Asia exit as costs rise" By Hal Weitzman in Chicago Published: March 20 2011 "Most big US manufacturing companies are considering relocating factories from low-cost Asian countries to the US or Latin America as they face rising logistics and transport costs, according to a report being released today by Accenture, the consultants." "The earthquake and tsunami in Japan, which have wreaked havoc on global supply chains, have underlined how multinational manufacturers can find themselves stranded without critical components." See: <a href="http://www.ft.com/intl/cms/s/18d090c4-5328-11e0-86e6-00144feab49a,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F18d090c4-5328-11e0-86e6-00144feab49a.html&_i_referer=http%3A%2F%2Fwww.dogpile.com%2Finfo.dogpl.t2.7%2Fsearch%2Fweb%3Ffcoid%3D417%26fcop%3Dtopnav%26fpid%3D27%26q%3DFt.com%2BU.S.%2BLow%2Bcost%2Bmanufacturing%2Bsite" rel='nofollow'>http://www.ft.com/intl/cms/s/18d090c4-5328-11e0-86e6-00144feab49a,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F18d090c4-5328-11e0-86e6-00144feab49a.html&_i_referer=http%3A%2F%2Fwww.dogpile.com%2Finfo.dogpl.t2.7%2Fsearch%2Fweb%3Ffcoid%3D417%26fcop%3Dtopnav%26fpid%3D27%26q%3DFt.com%2BU.S.%2BLow%2Bcost%2Bmanufacturing%2Bsite</a>
Stephen Landes
Wed, Sep 28, 2011 : 4:45 p.m.
Good News! On October 11, 2011, we will be rolling out the Great Lakes GLobal Freight Gateway which features a rail-based link between Halifax and Southeast Michigan to move containerized freight into and out of the Great Lakes Region. Contact me at stephenlandes@me.com for more information.
Kara H
Wed, Sep 28, 2011 : 3:09 p.m.
Yep. It says that. But reading past the first para to the why's it goes on to say: "The reason is less the level of the dollar, which remains relatively low in spite of the euro's recent plunge, but rather the huge level of incentives some US states are offering companies to set up factories in their region. Tennessee, for instance, has just disclosed that it agreed to give German carmaker Volkswagen $577m in incentives for its $1bn plant in Chattanooga. A senior executive at Fiat, the Italian industrial conglomerate, said: "With the amount of money US states are willing to throw at you, you would be stupid to turn them down at the moment. It is one of the low-cost locations to be in at the moment."" Also, FWIW, article is from 2008. Not really recent, don't know how the numbers might have changed in the past 3 years.
Stephen Lange Ranzini
Wed, Sep 28, 2011 : 2:47 p.m.
@nyx: here is what th article actually says: From: "US becomes the low-cost site of the moment for manufacturers" "The latest cheap manufacturing site for European companies is not in Asia or eastern Europe but the US, say top executives from some of the continent's biggest companies." "It may sound like a joke but it can be cheaper than you imagine to manufacture there," the chairman of one of Germany's largest automobile groups told the Financial Times."
Kara H
Wed, Sep 28, 2011 : 2:09 p.m.
I'm sorry, I said "tax incentives" above, but they're not generally tax incentives, just plain old incentives, often in the form of loans and give backs. Sorry to muddle the threads.
Kara H
Wed, Sep 28, 2011 : 2:07 p.m.
Here's the original FT article, which indicates that this is the musings of some EU execs, not an actual cost study: <a href="http://www.ft.com/cms/s/0/468171aa-7d3d-11dd-8d59-000077b07658.html#axzz1ZFuRr0Hp" rel='nofollow'>http://www.ft.com/cms/s/0/468171aa-7d3d-11dd-8d59-000077b07658.html#axzz1ZFuRr0Hp</a> It's only net lower cost to manufacture in the US if a company is siting a new plant because of the millions and billions of tax payer dollars states are throwing at companies. It doesn't net out based on pure manufacturing costs and many European companies stress that it's only advantageous to open US sites "for now." Once the tax incentives dry up, so does the advantage, so maintaining this faux advantage is pretty unsustainable.
say it plain
Wed, Sep 28, 2011 : 11:17 a.m.
Interesting info... so, will Snyder facilitate the creation of a container port in Monroe then? I'd hope so, given your analysis.
Stephenb1707
Wed, Sep 28, 2011 : 10:54 a.m.
Gov. Snyder should write a law keeping her out of Michigan. How can she have answers now when she did not for 2 terms. The most annoying point is she must think we are that stupid. She doesn't even have enough imagination to change here hairdo.
mojo
Wed, Sep 28, 2011 : 10:32 a.m.
8 years . . . 8 years is a long time to blame something else for troubles when you are the governor, when you are in charge. She saw the auto's losing share - she knew that was happening day 1. Her reaction was small at best. . Losing nearly 1 million jobs is her legacy, had she been a Republican the press would have ripped her limb from limb - instead she gets to do book tours and speeches recasting her 'leadership' as something valuable, where results are not measured and only intent counts.
Benjammin
Wed, Sep 28, 2011 : 10:17 a.m.
Talk about revisionist history – her memory of the cause for the one state recession is faulty. The frequent changes to the business tax policies froze many companies on the sidelines. They could not predict the Michigan tax structure and decided to locate in adjoining states. Jobs and wealth creation come from the private sector; no state can tax themselves into prosperity.
Macabre Sunset
Wed, Sep 28, 2011 : 10:07 a.m.
She created a tax code that destroyed any incentive for businesses to move here. Her idea of business incentives was creating winners among her friends (all that junk with the film industry) and losers among her enemies. Particularly small businesses. Her tax structure was quite a disincentive for small businesses to grow. Being a Michael Moore -ocrat, Jenny is very good at manipulating and lies to try and create a story that bears no resemblance to reality. She was an anti-business governor, and the SBA rated Michigan as one of the worst states in the country to try and grow a small business. If Snyder does nothing aside from getting rid of the SBT, he will have done Michigan a great service.
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 9:31 p.m.
The SBT (predecessor to the MBT) which Republicans insisted was a bad tax was enacted in 1975 and signed into law by a Republican governor. See page 7 of: <a href="http://house.michigan.gov/hfa/PDFs/singlebusinesstax.pdf" rel='nofollow'>http://house.michigan.gov/hfa/PDFs/singlebusinesstax.pdf</a> GN&GL
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 8:40 p.m.
"She replaced something that was hurting business with something that hurt business much more thoroughly." Time for a civics lesson. It was approved by the Republican legislature. No governor could change the tax system on their own. In but few areas, the governor of the State of Michigan can do only that which the legislature enables them to do. So I am shocked, SHOCKED, that you appear to have ignored the role of the Republican legislature in helping to create and then failing to ameliorate the state's economic problems. Next piece of fiction? GN&GL
Macabre Sunset
Wed, Sep 28, 2011 : 7:50 p.m.
She replaced something that was hurting business with something that hurt business much more thoroughly. We know both parties are in bed with those who give them money. It so happens that Jenny's friends were even more anti-business, so we sunk to about 45th in the small business rankings. Correcting a wrong with much worse wrongs does not fix an economy. She did a lot of harm. Bad Governor and Bad Governing
Edward R Murrow's Ghost
Wed, Sep 28, 2011 : 6:28 p.m.
"She created a tax code that destroyed any incentive for businesses to move here." The MBT passed through a Republican-controlled legislature, replacing the SBT which had existed throughout the entire Engler administration with a Republican controlled legislature. Next piece of fiction? Good Night and Good Luck
andys
Wed, Sep 28, 2011 : 1:17 p.m.
"that dumping money into the rat hole that feeds the wealthiest in this state will somehow trickle down as jobs, a long discrediited fairy tale" Wow, so that tax money is really the State's money, until they graciously let the businesses and taxpayers who originally created it keep it. I see.
james
Wed, Sep 28, 2011 : 12:52 p.m.
"Do you honestly believe that the tax structure has any significant effect on whether businesses start up in this or any other state? " Not whether they start up, but whether they have a chance at success. Granholm made it so restaurants and many other businesses had to pay taxes on gross income, not net. With restaurant profit margins at less than 5%, I have no idea how any restaurant stayed in business during her reign. I personally know at least 5 restaurant owners that either shut down or left the state because this made it difficult to run a successful business. "that dumping money into the rat hole that feeds the wealthiest in this state will somehow trickle down as jobs, a long discrediited fairy tale" So what's the answer? Increasing taxes? When you run out of people to tax, where are you going to get the money?
RayA2
Wed, Sep 28, 2011 : 11:36 a.m.
Do you honestly believe that the tax structure has any significant effect on whether businesses start up in this or any other state? If you are referring to the movie industry credits that the former governor initiated, when you talk about creating winners and losers, for many reasons these credits were the act of a genius compared to slick's methods. Slick thinks, like all republicons, that dumping money into the rat hole that feeds the wealthiest in this state will somehow trickle down as jobs, a long discrediited fairy tale.