Sunday, July 26, 2009

Michigan Government As A Role Model?

Via the Planet Gore blog that Obama called Michigan Governor Jennifer Granholm one of "the best governors in the country."

If Obama really sees Michigan as a role model, then America is in for real trouble, given that Michigan has the by far highest unemployment rate in America, at 15.2% compared to the national average of 9.5% and 12.4% in Rhode Island and 11.6% in California.

To be fair, that can't entirely be blamed on Granholm. The state of Michigan is ground zero in the breakdown in U.S. car manufacturing and Michigan would likely have had above average unemployment under any governor.

But Granholm have made matters worse through here left-liberal policies, with for example a minimum wage significantly above the average (though the federal increase enacted two days ago have reduced that difference) and most importantly her environmentalist zeal that have not only included not fighting the federal fuel mileage standards that have hurt Detroit car makers, but also wasting hugh sums of money on "renewable energy" projects.

Now Granholm and her fellow Michigan Democrats plan to go even further by further increases in regulation, including an increase in the minimum wage to $10 per hour, increasing state unemployment benefits (using what money?)a one year moratorium on foreclosures, mandating businesses to provide health care for workers and force energy producers to reduce their rates by 20%.

The latter proposal is especially stupid since they at the same time tries to make energy producers to rely on more expensive ("renewable") energy sources. Unless the state of Michigan dramatically increases subsidies (again, using what money?) this will result in power shortages and blackouts, something which will further damage Michigan's business climate.

As these crazy policies are indirectly praised by Obama, America should be very worried.


Blogger flute said...

Speaking of praise, have you read Nouriel Roubini's op-ed in New York Times yesterday, where he praises Ben Bernanke's policies to "solve" the crisis?

Might be worth a comment or two...

BTW, thanks for your insightful comments on the economy, which I've been reading for a few years now.

7:21 PM  
Blogger stefankarlsson said...

Flute, I read Roubini's piece, and I wasn't exactly impressed by it. But there is not much to say about it except that he asserts that while Bernanke may have made mistakes in the past, he has done an excellent job recently. Since he doesn't attempt to prove it, there's little to comment about it except that he hasn't even come close to proving his case.

11:34 AM  

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