How Bad is Michigan's Economy?
In the past, I've analyzed U-Haul truck rental rates to gauge the flow of traffic into and out of anti-growth states. Today, I want to measure the rates between Michigan and Tennessee. I picked these two states because Michigan is particularly hostile to taxpayers (and has a critical Senate race coming this November), while Tennessee is a fairly close state to Michigan that doesn't have a state income tax.
To compare them economically, Michigan has the 16th largest state/local tax burden in the country. Unemployment is 7.1% (tied for the highest in the nation with Mississippi).
On the other hand, Tennessee is ranked 47th for state/local tax burden and its unemployment is 5.7%.
So can you guess in which direction taxpayers are moving between these two states? Here are the U-Haul rates for a 26-ft truck on October 29, 2006 (an arbitrary date):
Detroit to Nashville: $1659.00
Nashville to Detroit: $295.00
Clearly, the situation in Michigan is bad. Demand is so great to leave Michigan that it costs over 5 times more than it does to arrive from Tennessee. And it will only get worse if Debbie Stabenow continues to represent the state in the U.S. Senate. She's hostile to pro-growth policies that would make Michigan a more attractive place for taxpayers and for businesses. While she may not understand economics (which is clearly the case), she should understand the supply and demand effects behind the above U-Haul rates. She should want MORE people moving into the state instead of out of it, but clearly that's not a top concern for her. Instead, she votes against tax cuts, against tort reform, against trade agreements that would open up foreign markets to Michigan's producers, and against every other conceivable pro-growth bill. It's time for her to go.
Instead, we should help elect Mike Bouchard. He supports job-producing tax cuts and accomodating policies for businesses to thrive in Michigan that will increase the standard of living for everyone.
Please donate to Mike Bouchard's campaign HERE.
PAID FOR BY CLUB FOR GROWTH PAC AND NOT AUTHORIZED BY ANY CANDIDATE OR CANDIDATE'S COMMITTEE. 202-955-5500.
