Michigan’s economic health is second-best in the nation

 

Michigan has the second-best economic record among the 50 states -based on a decline of merely 7.4% since 2008 on a new measure called BEES, the Bloomberg Economic Evaluation of the States. BEES tracks growth by compiling data on six components that are given equal weight: job creation, personal income, tax revenue, housing prices, mortgage delinquencies and the performance of Bloomberg stock indexes that track the share prices of locally based companies. The BEES index, updated quarterly, is a measurement of growth, not absolute performance, so a slowing economy with low unemployment may rank below a battered state on the mend.
By lowering businesses taxes, eliminating the Michigan Business Tax and removing other barriers to growth, Michigan is leaping from one of the bottom tax climates in the nation to a more competitive position. The nearly $1.8 billion reduction in business taxes promises a new level of economic certainty for businesses and makes Michigan an attractive environment for growth.
Earlier this year, Fitch Ratings also took note of Michigan’s progress. This balanced budget based on solid financial principles helped move Fitch’s outlook for Michigan to “positive,” another sign that Michigan is on the right path and that our fiscally sound environment is ripe for economic growth.
And just this week, the U.S. Small Business Administration reported Michigan’s banks and credit unions led the country in providing government-backed small-business loans, according to new data from the U.S. Small Business Administration.
The Detroit Free Pressreported that from October 2010 through September 2011, $689 million in small-business loans went to businesses in a variety of industries in Michigan. During that time frame, lenders made 2,063 of the most popular type of SBA loans, called 7(a) loans, up 47 percent from the 1,406 loans worth $386 million in fiscal 2010.
Michigan's strong,or should we say less-weak? Showing on the BEES index is partly because of a rebound in the auto industry. General Motors, Ford and Chrysler have all gained market share and become profitable since 2008. But the modest recovery in the auto sector hasn't spread to other industries. After being the nation's economic caboose for most of the past decade, why not give the Michigan whistle a little toot when some new numbers show you are suffering a bit less, proportionally, than the rest of the nation's sputtering economic train? Michigan’s economy is recovering from the recession at the second-fastest pace in the U.S., lifted by reviving car makers and local manufacturers, according to a new Bloomberg index that tracks the pace of state growth

North Dakota was the only state to record positive economic progress overall between the end of 2008 and the second quarter of this year, according to the BEES, a new quarterly index that combines data on tax collections, personal income, employment, home prices, mortgage foreclosures and the stock prices of public companies. Those suffering the worst economic tailspins -- with drops of more than 20% since 2008 on the BEES -- were Wyoming, New Mexico, Idaho and Nevada.

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Andrea Crossman

Andrea Crossman

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