They can get worse, or they can get much, worse, depending on what our elected officials do. We are on the brink. In either case, we are probably looking at something along the lines of a 15 year slide. In 1998, the Big 3 had a market share of 75%. Now they have 50%. In another 10 years, their UAW-inspired cost disadvantage may drive their share down to 30%.

As the local economy shrinks faster than the government, tax rates will go up, making Michigan even less attractive, but manufacturers are not going to return to Michigan in large numbers as long as the local workforce fails to appreciate employers. Who is going to locate a plant where people earn $50 an hour for doing a $20 an hour job, and complain about it in the meantime?

And Granholm's recent blather about "attracting alternative energy" sounds like a collection of ill-conceived notions that you might expect from a 6th grade social studies class. I hope she was simply pandering to that part of the electorate too stupid to know any better -- and that she's doesn’t actually plan on wasting a lot of money on any of that cock-a-hooie.

If she is sincerely interested in energy, there are worthwhile projects to support. Consider that American power companies are now on the verge of building 20 to 30 new nuclear power plants. The greatest barrier up to now has been the approval process. Where energy is available, there also will go manufacturing. Each nuclear power plant generates 2,000 construction jobs during the building phase, and 400 high paying jobs on a permanent basis. While the North and Northeast has some of the greatest needs for power, most of the plants are planned for the South.

If Michigan would actively work on a bi-partisan basis to attract investment perhaps we could attract a project for Michigan. We can show a receptive disposition for projects, as well as remove regulatory hurdles in advance, which would also be taken as a sign of support. Reducing the perceived approval-risk would have tremendous value for a potential investor, yet could cost very little.

If Granholm insists on something more “alternative," she might consider working to attract a plasma gasification facility, which burns landfill trash at some unholy temperature, generating power in the process. Or for something less cutting edge, but still “edgy,” how about coal gasification?

The other big issue is the failure of Detroit public schools to provide a basic education. Democrats will never have the political will to address this problem since they are in hock to the teachers’ unions. Perhaps the solution is more money for teachers’ pensions. (But we’ll say it’s for the kids.) We will soon condemn another generation to whatever economic life awaits the uneducated.

Let's start with plans to completely privatize all education through full-fare vouchers and scale back plans from there. With an educated workforce, and with people able to buy homes in a metropolitan area for $20,000, Detroit would have tremendous potential. Or, it can slip into a hole, weighed down by rising taxes, capital flight, an overpaid skilled workforce, and an uneducated unskilled workforce.

Rose Bogaert, Chair
Wayne County Taxpayers Association, Inc.