Introduction The United States is facing an increase in economic competition, in the new global economy. It is in the State of Michigan that fluctuations are intensely felt and thus affecting the living standards of the residents. The residents are experiencing an unprecedented period of job loss and economic upheaval, with the end nowhere in sight. As manufacturing industries decline and manufacturing jobs disappear, it is becoming increasingly clear that, for the estate and the country to thrive, individuals in Michigan must cultivate the knowledge-driven, entrepreneurial sectors of their economy, particularly so-called "high technology."
Michigan’s has developed various infrastructure developments such, as roads and highways form vital transportation relations for the state's visitors, residents and businesses. In addition to that, well laid infrastructures provide everyday access to jobs, homes, natural resources, shopping and recreation. Today, the state of Michigan is working to foster quality of economic competitiveness and life improvements. It will be essential for the state government to invest more on upgrading transportation system which is very essential. Other areas of concern include in the economy including agriculture, tourism and manufacturing.State of the Economy in Michigan Recently the state reduced the corporate tax with a significant amount. This has made the state more attractive to traders because of the low cost of establishing a business. This move has been recommended by most of the state residents. They believe that, the state will be in a better position in terms of its competitiveness regarding employment and business growth and, significantly, reveals Michigan as having a more business-responsive environment an important asset in business attraction.
The current reduction in corporate taxes has also offset the reduction in the portion of Michigan budget relating to tax credits. Many changes have lately happened in Michigan connecting to economic growth, including shifts in resources, strategy, and taxes. The reduction of corporate income taxes in the state of Michigan is from an economic growth and site selection standpoint, viewed as a growth. Although, a low-tax environment alone is insufficient to support economic growth, skilled labor, strong markets competitive, numerous considerations of institutional and infrastructure nature, among other things, are also required (Peck 639). Michigan economy is improving and rebounding from the current economic downturn. This is evident through the preservation and modernization effort of the state's transportation system, which could play a significant role in improving Michigan's economic competitiveness, and enhancing economic welfare. This is by critically providing needed employments in the short term and by enhancing the competitiveness and productivity of the state's businesses in the long term. As Michigan faces the challenge of modernizing its transportation system, the future level of state, federal and local transportation funding will be a significant factor in whether the State's visitors and residents continue to enjoy access to an efficient and safe transportation network. Meeting Michigan's need to maintain and modernize its system of roads and highways will require an important boost in state, local and federal funding. Directly limiting the increase in state government by regulating both federal spending and tax revenues to an amount that permits an increase in state population plus inflation, have an important impact on public services as well as on the state economy. Lower taxes result to lower costs of living and increase business in the state. In Michigan, as in most states, spending and taxes for public services grow unevenly at the same speed as increase in the individual income of the state's residents. For the last twenty years, personal income has increased slightly slower at 5.2%, and tax collection in Michigan has increased at an average annual rate of 5.5%. The last ten years, collections of revenue have increased meaningfully slower than the increase in income, with a 10-year increase in revenues of 3.5% versus a 4.1% increase in personal income. There has been no "uncontrolled growth" in government expenditure’ in the state of Michigan.'' Despite the hardships in the auto industry, economy in Michigan has lately shown signs of improvement, with significant personal income growth and job growth in the past year (Christopher son and Ned 341). After a period of decline, Michigan's employment has begun growing again in the past year by about 5% employment growth in the auto industry. The Michigan state is likely to see positive employment growth in the next five years (Brown 610).
Figure 1: graph showing the economy of Michigan recent years performance (Atkinson and Scott 7).
In the contemporarily globalized economy, each state has focused on attracting high-tech, higher wage corporations offering jobs that can support middle-class families, and that needs skills less accessible in low-wage countries. In Michigan, economic growth officials have focused on expanding the economy through funding for higher-technology growth industries. Most notably, in the auto industry itself, most significant growth has focused' 'on the growth of new technologies'' to ensure more efficient and more climate-friendly vehicles. Such work is tremendously promising, as a growing area within the business that offers well-paying employments and is outsourced to low-wage countries.
Figure 2: graph showing the growth in employment in the industry sector, in the state of Michigan (Atkinson and Scott 11).
The state should focus on areas that are significant to the economic growth and development. Economic Strengths in the state of Michigan include availability of skilled blue-collar labor. It also consists of existing business base, availability of the buildings, the strategic business attraction fund, fairly well educated labor, highway accessibility access to Lake Coastline, and existing supply chains. In addition to that, the state has a very competitive corporate tax rate environment and major national research universities that attract millions of dollars in R$D spending. The state has few weaknesses, which include the lack of jobs to attract and retain young adults, aging the workforce in skilled positions and key companies, lack of training and jobs for renewable energy sector, aging infrastructure, and incentive program gaps. In additional, limited resources dedicated to economic growth, high unemployment rate, and negative economic image due to decline and closure and annual wage growth slower than benchmark state (Haggblade, Peter and Thomas 1435).Policies to Recommend to Governor Snyder to Help MichiganLearning, skills and well-being
Snyder should focus on giving every child a strong start in life. He should focus school education by enabling young people to succeed and gain skills they will need as individuals in contribution of the wider economy. The state should adopt tax policies, which recognize the economic significance of increasing access to higher education and support educational innovation with the aim of encouraging state citizens to pursue learning throughout their working lives.Supportive business environment The state has to support business environment to increase the number of highly successful, competitive business. This policy focus on a number of main sectors with high growth possible and productivity and competitive ability to increase, a competitive tax regime which incentivizes business growth and attracts mobile actors of production. Infrastructure development and place Michigan economy in terms of businesses needs a high level of commercial and persona immobility. Economic growth and population increases in the state have resulted to a demand increase demand for mobility and an increase in vehicle miles of travel. To splurge economic growth and foster high quality of life in Michigan, it will be critical that the governor provide a modern and safe transportation system, which can accommodate future growth in recreation, people and tourism. This policy is important as regional, Local and state economic performance is enhanced when a state's surface transportation system is improved and expanded. The development comes because of the initial job creation. Area Development Magazine ranked increased jobs created over the long-term due to the improved access, decreased transport costs and improved safety Highway accessibility. Conclusion As Michigan looks to develop and build a thriving, dynamic and growing state, it will be important that it offers a 21st century system of infrastructure, which can accommodate the movement demands of modern society. In addition, to rebound from the current economic downturn, state of Michigan will need to modernize its transportation system by enhancing the physical state of its transportation network and improving the system's ability to offer reliable, efficient mobility for businesses and motorists. Making required improvements to Michigan's highways, roads and bridges could provide an important boost to the state’s economy by creating employments in the short term and stimulating long-term economic growth because of improved access and mobility.
Without a considerable increase in state, federal and local highway funding, many projects to improve the condition and increase the ability of Michigan's roads will not be able to proceed. This led to obstruction of the state's capability to improve the state of its transportation system and economic development in the state. Governor Snyder should focus on the area where the economy is doing great, and come up with better strategies to increase efficiency in the economy.
Works cited
Atkinson, Robert D., and Scott Andes. "The 2010 state new economy index." Information Technology and Innovation Foundation (2010).
Christopher son, Susan, and Ned Right or. "The creative economy as “big business”: evaluating state strategies to lure filmmakers." Journal of Planning Education and Research 29.3 (2010): 336-352.
Haggblade, Steven, Peter Hazell, and Thomas Reardon. "The rural non-farm economy: prospects for growth and poverty reduction." World Development 38.10 (2010): 1429-1441.
Brown, Adam R. "Are governors responsible for the state economy? Partisanship, blame, and divided federalism." The Journal of Politics 72.03 (2010): 605-615.
Peck, Jamie. "Austerity urbanism: American cities under extreme economy." City 16.6 (2012): 626-655.
