Michigan's Economy: Inside the Numbers
By John Bebow - August 7, 2008
Michigan joined Delaware and New Hampshire as the only three states to actually have shrinking economies in 2007, according to data from the U.S. Department of Commerce Bureau of Economic Analysis (BEA).
The BEA regularly measures state domestic product -- the value of all goods and services produced in each state.
Michigan had an economy valued at $381 billion in 2007, off about 1 percent from 2006 after adjusting for inflation. Illuminating insights, and even a few bright spots, are buried deep in the numbers. For example:
Michigan's agricultural economy is up 60 percent since 1997, with a total inflation-adjusted value of $2.6 billion.
Michigan's inflation-adjusted manufacturing economy is $70.3 billion. That's off from a high of $80 billion in 2003 but still slightly higher than the total manufacturing economy in 1997.
Michigan's construction industry, at $8.3 billion, is only about half as large as it was in the salad days of the late 1990s.
While the overall state economy slowed in 2007, key "new economy" sectors continue to grow. Finance and insurance, professional and technical services, and health care are all on the rise. For example, the professional and technical services portion of the state economy grew by more than $700 million in 2007.
Want to learn more about the Michigan economy and compare us to other states? Use the federal government's interactive online databases.
3 Comments
Wow, damn lies and statistics.
There is NO way our manufacturing base is "larger" in real terms (widgits produced/employees) than it was in the '90s.
There are thousands of factories shuttered and/or downsized.
In my own industrial neighborhood we have lost 3 businesses (none manufacturing) in the past 3 months alone.
Continuing to mis-apply inflation to GDP is creating the effect of using false numbers to state reality.
We are in a DEPRESSION in this state, and by the rate of existing business closing, we haven't hit bottom yet.
Articles like these convince the sheep that all is well. It ain't, and until we wake up and face REALITY it will only get worse.
thats not productive. If you dont agree with the numbers produced, ask how they got them and prove why they turned out that way based on the perception you see all around you giving your viewpoint to the situation.
I offer that while Many industries have shrunk besides the AUto industry, its entirely possible that the numbers are based on sales of goods that are far higher priced now adjusted for inflation than they were in the HeyDays of the 90s.
The higher prices may have to do with general price increases as well as businesses accounting for WAY higher petroleum costs, as well as skyrocketing insurance costs.
Also taking into consideration, the entire nation was heavily squeezed during the 2001-2004 recession that statistics showed forced businesses to force employees to be far more productive.
So efficiency increased thereby creating a future situation where more product was being produced by far less people, & sold for a higher price garnering a higher total GDP.
Those stats dont measure how many people are employed in full time jobs.
They are just values.
"Democracy is an abuse of statistics"
...so said Jorge Luis Borges. That much said, I went to the link John provided us and did a screen on Michigan's air transportation industry. Looks like we're at $1.4B -- down from a 2003 peak of $1.8B.
As we watch the Olympics this weekend we should think about getting some of our money back from the Chinese by building up Great Lakes International Airport (that's the name I like to give to DTW - the acronyn GRE is available, by the way). We should do everything we can to make sure those direct flights from GRE to China get approved by the FAA. Any pilot will tell you that GRE is a pretty good place to take off and land into weather-wise. We've got a robust interstate system in I-275 & I-94, and still a lot of undeveloped land between GRE and Ann Arbor.
If we're smart like the City of Troy was 50 years ago, we can build up Romulus into an international destination. Forget about the City of Detroit. It'll take another generation to repair the damage done.
I think some workgroups are already working on this, in conjunction with Willow Run. Let's help them. If we could those those GRE numbers up to, say, $2.0B in two years, would that be a statistic we would like?
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