Friday, September 28, 2007

Bankruptcy Looms for Michigan

These are tough times for Michigan.  The state government is facing an unprecedented budget crisis as it continues to face a looming bankruptcy, joining the ranks of some of the world’s worst governed states.  Michigan was a leading industrial state in the US, till a few decades ago shining in the glory of Detroit’s Big Three.  However, just as the Big Three have continued to lose market share to better competitors, the state has lost its glory to more progressive states.  In many ways, obviously, the fortunes of the state were always tied to Big Three.  Therefore, it comes as no surprise that the real estate market, government efficiency have both suffered just as the Big Three have continued their slide.

 

Fiscal conservatism is an easy thing to say, but a tough thing to achieve.  The Michigan government apparently has no clue of what the word means.  Maybe they borrowed a thing or two from the federal government, which is facing a 5.5 trillion dollar debt.  That apart, maybe this is the time for the state government to take a hard look at its own future. Else, it will not be long before some Chinese or middle eastern company vying to run the state.

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