Letters to the Editor: You Should Give Michigan a Break - WSJ.com
What Mr. Gale is missing is that Michigan shouldn't be comparing itself to California, which has been equally hurting its economy with too high taxes.
The proper comparison should be with economic competitors (read: China, etc.).
In other words, if the US wants to have a competitive economy that can provide jobs, it will have to do what it takes to support and nurture those jobs. With respect to Michigan, it has had a long run of taxes that are so high they drive companies to other states (or countries).
As for unions, the UAW either didn't want to see or was blind to the fact that GM was underinvesting in the car business and wiped out its investors. Not exactly an approach to attract business or investment.
Right now, Washington is raising government salaries with roughly a fifth of the American workforce underemployed or unemployed or having given up on looking for a job. This kind of egregiously ridiculous waste of resources has to be considered in a global context.
Yes, some workers are getting more pay; but, to pay them, the government and the US are going into hock. And, what is the country getting for higher paid government employees? Yes, more spending power to buy more imported goods; but, no incentive to produce more domestically. In fact, just the opposite.
So, Michigan can try and defend its tax, spend and union-favoring policies; but, as it does so, nothing will change; and, if nothing changes, there won't be jobs coming back to Michigan unless something horrific happens to destroy its economic competitors.
Tuesday, December 15, 2009
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