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.
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 growthNorth 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.Bloomberg
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