Random Thought Day

So, Governor Snyder wants to level the playing field.  He wants to eliminate having to pick winners and losers, while at the same time grow jobs here in Michigan.  So how does he do it in the first ninety days of his administration?  He eliminates the price sticker law in the State.  For those that don't know, every retailer in the state was required to have price stickers on every piece of merchandise in their stores.  This way, the consumer would know what the cost was at all times.  So in an effort to create jobs, after all these retailers told the Governor that because of this law they had to raise prices to hire the people to place the stickers on the merchandise.  If the Governor would scrap the law, they said, they would be able to lower prices and keep the same people on to provide even better customer service to its customers.  So, let me get this straight...by eliminating the law the retailer will keep on the people that they said they had to hire, but yet still be able to lower prices?  This makes no sense.  If the reason prices are high is because they had to hire people, how can they lower prices and keep the employee?  Now the retailer says, it's because of the fines they had to pay for having merchandise that was priced incorrectly.  I smell B.S.  A family member that works for Wal-Mart told me that they agreed with the change, and that it was going to create even MORE jobs.  How did they know this?  Because that what was explained in the company memo sent out to every employee in the state.  Yep - Wal Mart has pledged more jobs in the state once this law is scrapped.  Well, two things here:  First, the state doesn't need any more minimum wage Wal Mart jobs, we need higher paying technical and manufacturing jobs to make a dent in the unemployment and fiscal mess we find ourselves in.  Secondly, if you believe that scrapping this law is going to actually CREATE jobs I have a bridge to sell you that connects the lower and upper peninsula's.
Here is another one of Governor Snyder's job creation programs, eliminating the Brownfield Redevelopment Program.  For those that aren't familiar with it, it is basically a tax break program to take old industrial area's, clean them up, and re-use or clean up the land for new development.  This program was supported by every Governor since it's inception and has really worked.  It is hard to older cities that have had industrial complexes to attract new businesses onto land that needs this type of clean-up without this type of program.  Now if you are company A, and you want to move to the Flint area, and you have 2 options.  One is an old industrial site that needs environmental clean up, the second option is a new facility only a few miles away in Grand Blanc that is half the cost.  Which would you do?  Of course, if there is no incentive - you are going to pick the latter.  This program is vital for the future success of cities like Detroit and Flint, but it has worked in every corner of the state.  From Marquette to Monroe, communities have seen positive impacts from the program.  Here is a before and after example from Kalamazoo:

Now what do you think that bakery does for employees?  Robots?  Trained Monkeys?  Full Automation?  Nope - IT HIRES PEOPLE!!!  But according to Governor Snyder this is a loser.  He thinks a better idea is to have a flat corporate tax, and increase taxes on the elderly and middle class to make up the difference.  With a flat corporate tax this bakery would have never been built.  I just keeping going back to what George H.W. Bush said about Reaganomics - it's "Voodoo Economics".  Believe me, as much as I hate to admit it - the guy was right.  The trickle down theory does not work.  Corporation get richer and the individual does not.  The past 30 years have proven it as we have virtually lost the middle class, and the separation between the rich and poor has widened.  So the Governor has a great idea to create jobs and he will get it passed in his rubber stamp legislature.  It better work or he will find himself recalled soon, and those that support him will not be re-elected.
Speaking of re-elections.  It appears that Rep. Ben Glardon had an interesting coffee hour last week in New Lothrop.  It was a packed house with the majority of people against almost everything that the Governor has supported.  In his best politicese- Rep. Glardon said that he hasn't had the chance to fully read all of the Governor's proposals, so he couldn't base a fair opinion on them.  Hmmmm....does he read a newspaper?   What exactly is this guy doing everyday?  Then, he stated,.......wait for it........that he had spoken to many on pensions, and that these people WANT their pensions taxed.  REALLY.....who are these people, and what ward of the hospital are they in?  A member in the audience mentioned that he the Representative did vote for the Governor's proposals he would not get re-elected.  To which Rep. Glardon responded "I didn't get into this to be re-elected, I did this to help the state of Michigan get out of this mess".  Well Representative Glardon - you could start by picking up a piece of paper, any piece of paper (we'll start small here), and READ it.  You sir are officially on the clueless list.
Lastly, this week begins the 2012 Presidential Election cycle.  If you are reading this you have no doubt whom I support.  Here is a link and stay involved.  Til next time.......
http://www.barackobama.com/

The Michigan Mess

    It seems that Governor Nerd has decided that those drawing unemployment don't need the 26 weeks that they have been given in he past.  So, in an effort to save Corporations errrrrrrrr I mean the State money, he has dropped the unemployment draw down to 20 weeks starting in 2012.  Brilliant!! Think of all the money that the Corpor.......I mean the State will save.  Unless you consider:
     According to the U.S. Dept. of  Labor for every $1 that the State delivers in unemployment $1.61 is pumped back into the economy.  People out of work tend to BUY things.  You know - like food, shelter, gas, etc...
Now - lets say the average person draws $300 a week and right now we have roughly 150,000 people drawing unemployment - those six weeks that are taken away will take over $150,000,000 out of the States economy.  Incredible.  No wonder Gateway floundered under his leadership.  How does this make sense?  I know that the right would like you to think that everyone that is drawing unemployment is lazy, don't want to find a job, and living the high life on the State's dime.  But look at the facts.  $300 a week is not much to live on, especially if you have a family.  Many of the unemployed are people that were employed for years and now find themselves out of work, and quite frankly are older.  There aren't too many places willing to hire a 58 - 62 year old person right now, and this makes up a great deal of the unemployed.
     Cutting education budgets for both K-12 and Secondary is a huge red flag for not only teachers, but parents as well.  How is going to go over when some districts scrap busing because of budget cuts?  Parents will revolt.  Telling Universities that you are cutting their budget, and oh - by the way - also telling them they can't raise tuition is the 21st centurys latest version of an unfunded mandate by the State.  It is going to cause massive cuts by the Universities, which means more jobs gone in the state.
     His biggest mistake so far has been to allow the State to decide when a city or township is in trouble and allow the State to name an Emergency Manager.  This Manager can ignore union contracts then fire everyone and start over.  His avoidance of the collective bargaining and union busting will not go over in this state.  The Unions in the past few years have shown that they are willing to make concessions to save jobs and save Michigan.  They sat in Washington along with the Big 3 in a sign of sosolidarity to help them get back on their feet.  This is the Nerdy Governor's major mistake and may be his demise.
     According to sources in Lansing, polling show that the independents in the State are deserting him in droves.  Now keep in mind he dominated this group during the election.  He won the election by 18 points and polls now show that if the election were held now he would lose by 2 - amazing turnaround in 90 days.
     I get the whole "shock and awe" approach to his plan.  He is throwing every idea on the table right now knowing that he will have a full 3 years to rebuild his reputation back before another election.  The problem is that you have legislators that are up for election in less than 2 and you better believe that the Democrats have a great chance of taking over the legislature.  Nothing in his first 90 days has shown that he is willing to work with the Democrats and if they take over the House in 2 years he will be in for a rude awakening.  He is getting everything rubber stamped right now by a Republican House and Senate.  In 2 years he is going to learn that Politics is not the same as running a Corporation.  As a CEO what you say goes - by your rules.  In politics you have to play nice in the sand box sometimes and you need CONSENSUS to get things accomplished.
      I know cuts have to be made...I know that tough decisions need to be made.  But as a former CEO I thought that he would understand how to do this.  Any organization will look into it's own departments and lean them out.  They will look for redundancies in the process and eliminate them to save money, they will ask the workers where and what will save the State money.  It works - I have done it and it really works.  Has the Governor looked into this?  Nope - he immediately has gone to the low hanging fruit - take away benefits from those less fortunate and reward those doing well with the hope that it creates jobs (when history shows it doesn't).
     The Governor better watch out.  There are going to be serious challenges to his office.  There is going to be a well sought after petition drive this spring to recall him.  Now while most recalls fall short, he has alienated enough people, people that voted for him that are disgusted by the way he has driven his agenda down their throats with no thought of how this will effect those that are struggling to make ends meet right now.
     It is going to be an interesting year here in Michigan.....and it starts in May when the recall petitions start to circulate.