Michigan Economy: Is Education the Last Hope for Jobs?

Romulus, Michigan - Romulus residents feel the urge and necessity of November's election. Having just completed a political standoff with Wayne County Authorities, the best Romulus citizens could achieve was a stall in the proposed airport expansion plan that would have caused the city to lose an elementary school, a park, more than 50 businesses, and 800 residential properties. Gathering their collective breaths, residents now turn to 2008 elections for hope that the economic decline of the state of Michigan can be resolved.

The overwhelming majority of Michigan citizens would agree that jobs and employment are the number one issue involving the state. The state has lost 400,000 manufacturing jobs since 2000, and its unemployment rate is highest in the country. Ford Motor Co. reported its biggest quarterly loss ever. General Motors has announced a restructuring that will cut more jobs in Michigan, as well as eliminate health benefits for current retirees.

Romulus residents are concerned with the unique situation that has occurred. While economic decline can be seen nationwide, the state of Michigan has been affected detrimentally. That decline continues its slide to the local level of County and City government.

"We can't turn around without seeing the effect of economic dissolution," stated Ronald Michael, a resident of the city, "The citizens of our city not only have to actively fight to keep their homes and their jobs through our local government, but we also have to deal with the inability to directly control the outcome of this states situation on the state and national level."

Along with stalling the airport expansion proposal, Romulus residents have seen the failure of their city to bring in new jobs via casino legislation, creating a loss of 2,000 potential jobs for the city. This explains the breath-holding attitudes of most Romulus residents. They participate in the objective of creating more jobs within the city, while at the same time fighting the prospect of losing their homes. One goes with the other, yet not solvable independently.

The economic problems in Michigan started, not solely, because of increased business taxes at the state level. These taxes made Michigan rank one of the highest states in which it costs to do business. In consequence, businesses have left Michigan and none has arrived to replace them, creating a vacuum and unemployed workforce. As well, these increased taxes have resulted in layoffs and cutbacks in companies that remain in Michigan, including the traditionally dominating automaker industry.

Inherently, this is where Michigan problems lie. The state was built around the automobile industry, which fluctuates heavily depending on economic stability. When money is tight, people do not have the primary concern of buying a vehicle. This creates a "cold/flu" effect. When the national economy is in recession and gets a cold, Michigan goes into depression and gets the flu.

Saul Anuzis, the Republican Party chairman, describes the situation as a single-state recession during a National Public Radio interview. "We're a unique state in the entire country," Anuzis said. "We've lost jobs six years in a row. We are one of only two states that have a net outflow of U-Haul trucks leaving Michigan as people move out. You can feel it, so I think we are pessimistic."

In her weekly radio address, Governor Jennifer M. Granholm ascertains that legislation increasing funding for Michigan's K-12 schools promotes early childhood education and targets the state's dropout rate by creating the 21st Century Schools Fund. The budget, signed into law this week, invests in education. This, she believes, will strengthen our economy and help create the new jobs we need in Michigan.

The Governor has left constituents wondering where her priorities lie and whether or not she is trying to, politically, kill two birds with one stone. It seems by focusing on education, the number two issue in Michigan, she seeks to fix the economy, which solidly resides as the number one issue to most voters. She states the concern with drop-outs not attaining the education necessary to fill a diversified job market and that providing funding to keep them in school will result in a boost to the economy.

The sentiment is mirrored on a national level as McCain and Obama refer to education as the primary solution to the nation's economic recession. McCain believes that the American worker must adapt through education and skill development. He believes a dynamic economy (through lean government and open/competitive markets) can support job change. Obama seeks to spur job growth by increasing education in science, math, and technology; spearheading green technologies; and increasing the renewable energy sector. He will work for non-tariff barriers on U.S. exporters and expand Fund Trade Adjustment Assistance to service workers. He would invest in rural areas and communities burdened by globalization.

Although the principles leave room for healthy skepticism, it could very well be true that education is the only way to revitalize Michigan's economy and possibly, economical problems on the national scale, as well. The unilateral commonality between Presidential candidates and Michigan government is that restoring this states economy will only occur by increased education spending and developing alternative energy sources.

Statistics from the Michigan Economic Development Corporation (MEDC) shows the state ranks 4th nationally for total employment in high tech industries with 568,000 high tech workers currently, and in 2002, Michigan was ranked the second, by the National Science Foundation, for research and development investments.

Michigan is a technological powerhouse, making it the perfect candidate for the next alternative energy revolution. Skilled workers need only be retrained and shift focus to developing biofuel, electric, and hydrogen technologies from the pressure of high gas prices, new national fuel-economy standards, and emission concerns. Governor Granholm recently initiated the No Workers Left Behind program to prepare recently laid-off auto workers for positions in the alternative energy sector. Obama's vision for Michigan is certainly focused on alternative energy development as well.

Although the evidence that education is truly the road to revitalization, many Michigan residents are left to wonder if the long term vision will provide any relief or solution to the immediate problems.