My old friend and former Michigan legislator Greg Kaza writes in this column that the states which are enjoying rapid growth and low unemployment are low-tax states like Wyoming and Nevada. On the other hand, the most stagnant state is Michigan, which has high tax rates (not to mention onerous regulations and a high degree of unionization). Little wonder that capital and labor are leaving states like Michigan and heading for Wyoming, Nevada, and other places where government does less to impede production and the accumulation of wealth.
Well worth reading.
Michigan, like NC, puts a lot of stock in government incentives to get firms to locate there. Occasionally they get a hit, which allows officials to crow about all they’re doing to attract investment, but the bad business climate swamps the effect of the incentives.
