For people who live and work in Michigan, one major concern continues to dominate headlines and dinner table conversation — the economy.
The automobile industry has driven the state’s economy for decades, so the economic woes of American automakers have had a tremendous impact statewide. Michigan has spent more than three years at the top of the unemployment charts, with unemployment hovering around 13 percent in April 2009.
“The economy is definitely hitting us hard,” said Ted Stephens, Cooperative Missions Ministries team leader for the Baptist State Convention of Michigan. “What other parts of the country are going through now hit us two years ago.”
In addition to small annual decreases to the state’s population, total home sales and overall home prices in the state have fallen over the past several years. Stephens said the recession has affected churches and associations, as well as the state convention. He knows of at least one pastor who lost his home when the church was unable to pay his salary.
“It’s been a rough couple of years,” Stephens said.
Though no one knows how soon the U.S. economy will recover, Michigan faces a bleaker future than most. Chrysler and General Motors are in bankruptcy. The fate of American auto companies will have a tremendous impact on the state as a whole.
“It’s a very difficult time for all of us to forecast in Michigan right now,” George Fulton, a University of Michigan economist, recently told The Associated Press (AP). “We have unprecedented events occurring almost daily.”
As tax revenues continue to fall, state leaders consider more spending cuts in state programs. In May, the AP cited projections that Michigan will collect $1.7 billion less in revenue in the 2009–10 fiscal year than officials originally thought. Though federal stimulus money will fill in some gaps, leaders say more cuts to state programs are necessary.
However, some positive signs are emerging. Statistics from the Michigan Association of Realtors show that April 2009 home sales were up by more than 8 percent, though home sales prices remained lower than in past years. Agriculture, the state’s second largest industry, showed promising gains in 2006 and 2007, as did the state’s agricultural energy sector, which includes wind energy and biofuels. Increased national emphasis on environmentally friendly cars is bringing research and development jobs to the state.
Michigan Gov. Jennifer Granholm noted these accomplishments in her state of the state address in February, also acknowledging that things will get worse before they get better. She also expressed a hopeful outlook for the state and those who call Michigan home.
“Michigan will weather this economic storm because our people are resourceful and resilient,” she said. “Things will get better.”
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