] the domestic auto industry, the engine of the state's ] economy in the 20th century, is sputtering in the 21st. ] With 7 of Michigan's 10 largest employers either domestic ] automakers or parts suppliers, Michigan's unemployment ] hit 7.3 percent in December. That tied with Alaska's as ] worst in the nation, according to the most recent report ] from the Labor Department; numbers released by Michigan ] on Wednesday adjusted December's unemployment down to 7.5 ] percent, but showed some improvement in January. When I was a kid, I remember being at an UAW function where the men took turns beating a Honda with sledge hammers and finally lighting it on fire (a Detroit passtime if there ever was one). Even as an 8 year old, I could tell that this was a futile attempt to liberate the fear and frustration on the part of the workers. What will they do now? The city of Detroit has spent BILLIONS of dollars to try and reinvigorate itself, but failed to actually change its economic structure and diversify its economy. Look at the second chart that ranks states jobless rates. Throughout the boom boom 90s, the state made headway, but with the recession in 2000, it plummeted like a rock and shows literally no sign of recovery whatsoever. Having just been there back in January for the NAIAS, I can tell you that the city of Detroit looked worse than I remember it for a long long time. Probably as bad as it was when I was in high school. I fear the worst is coming and that no amount of federal aid or support will reverse the course. The state will slip into economic irrelevance once again and most of my friends and loved ones will suffer. Except unlike the 90s, there won't be a post manufacturing boom and retooling to save the state's economy. Those days are long gone. Taking Down the 'No Foreign Cars' Signs in Michigan |