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We are in for a very bumpy ride

We are in for a very bumpy ride. Michigan is no longer number one. After a very long run as the state with the highest unemployment rate it was reported on Monday, Oct. 20, 2008 that we dropped to number two. Rhode Island took the honors with the highest unemployment rate in the country at 8.8 percent. The Michigan unemployment rate stands at an 8.7 percent.

So why do I say that we are in for a very bumpy ride? The very next day, Tuesday, Oct. 21st, the Barack Obama campaign flew Michigan Governor Jennifer Granholm to Florida to sit on a panel to discuss ways to turn the national economy around. Further, on November 7th President-elect Obama named Governor Granholm to his economic transition panel.

This should have the whole country concerned. As Governor of Michigan, Granholm has been more concerned with promoting social justice than with reviving the economy. She has put the needs of the political class in Lansing above the needs of working class families by playing on their fears in regards to a social safety net. Watch out America because Granholm has Obama’s ear when it comes to the economy and what we have been experiencing in Michigan is coming to the whole nation.

Granholm’s solution in Michigan has been higher taxes on income, higher taxes on business and significantly higher fees on government services; and rolling over for big labor. She also signed a new six percent tax on 82 service categories including palm reading, skiing, environmental consulting and diet/weight reduction services. With intense public pressure a repeal became law hours after the service tax became effective only to be replaced with a 22 percent surcharge on what was already the worst business tax in the nation.

Sure the nation is entering a recession. Recessions have been part of the normal economic cycle for generations. What is different is that Michigan has been in a one state recession for many years with no foreseeable end in sight. Will the Granholm economic model be adopted for the nation? If so, put your seat belt on and hold onto your wallet because you’re going to be in for quite a ride.

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