Michigan is becoming a poor state and will stay that way, says economist
June 13, 2007
Living right smack dab in the middle of the state, it's hard to read the story in this morning's Detroit News about how Michigan's sagging economy has not bottomed out and probably won't, at least, for some time.
According to economist Dana Johnson, Comerica Bank's chief economist, Michigan is a "relatively poor state" that is likely to get poorer unless the auto industry rebounds.
What would it take for the state to bottom out economically and start catching up with the rest of the nation? He says Detroit automakers would need to halt their market share slide and return to profitability.
Reason for Michigan's economic slide is tied to the state's intimate relationship with the auto industry:
"The state's economy is almost 700 percent more concentrated in the auto industry than the national economy.Technorati Tags: michigan, auto industry, economy, state budgets, comerica, dana johnson, detroit news
"While the U.S. economy has been creating jobs for the past three years, Michigan has seen tens of thousands of jobs vanish."
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