economy

Kate Davidson / Michigan Radio

The city of Detroit is in the news very often and rarely with good news. Declines in population, and a troubled school district are just two of the stories that are plastered across newspapers and reported on in the national media.  At the same time, stories about young people and artists moving into the city have also gained national attention.

Michigan Radio's Jennifer White spoke with Mayor Bing about what he's doing to help brighten the city's future.

"The recurring story about the plight of Detroit is something that we are not going to fix overnight.”

Mayor Bing says, "Detroit is coming back." He adds new companies are moving into the downtown and midtown areas, and he says the Riverfront is a great asset. Bing also says there is too much focus on the negative. He hopes people will look at the positive things happening in the city, and he invites people to come see for themselves.

Annie Green Springs / Flickr

The Michigan ACLU filed a lawsuit in federal court today asking a judge to nullify a state law that prohibits panhandling in public places.

The lawsuit names Michigan state attorney general Bill Schuette, the Grand Rapids Chief of Police Kevin Belk, and Grand Rapids police officer Gregory Bauer as defendants.

The state law in question defines a "disorderly person" in part as a person who is "found begging in a public place."

ACLU of Michigan representatives say between January 1, 2008 and May 24, 2011, the Grand Rapids Police Department "produced 399 incident reports of individuals prosecuted under the unconstitutional state statute" - prosecutions that ACLU representatives say say led to 1,641 days in jail and $60,000 in expenses to taxpayers.

More from the ACLU of Michigan's press release:

“Anti-begging laws that punish that most vulnerable segment of our society are not only harsh, they are unconstitutional,” said Miriam Aukerman, ACLU of Michigan staff attorney. "Removing the reminders of poverty from our sight is not the answer to Michigan’s economic woes. We need laws and practices that provide compassionate solutions for our growing homeless population.”

ACLU lawyers filed the lawsuit on behalf of two Grand Rapids residents, James Speet and Ernest Sims.

The lawsuit indicates the two have been "repeatedly arrested or ticketed by police for violating the state’s blanket ban on begging in public."

“I see people holding up signs throughout the city advertising restaurants or protesting and they don’t get arrested or ticketed,” said Speet. “I don’t understand why my sign is any different just because I’m homeless and looking for a job.”

U.S. Census Bureau

The U.S. Census Bureau released more data today cataloging the nation's median household income, poverty rate, and the percentage of people without health insurance coverage.

Census officials say this data represents the first full calendar year after the December 2007-June 2009 recession.

For health insurance coverage, the differences between 2009 and 2010 were not significant. It's estimated that 16.3 percent of the population is without coverage - about 49.9 million people.

Real median household income in the U.S. in 2010 was $49,445, - a 2.3 percent decline from the 2009 median.

Not surprisingly, the nation's poverty rate was up. "Poverty" is defined by the number of people in a household vs. their income. For example, a family of four that includes two children is considered in "poverty" if  their income is below $22,113.

From the U.S. Census Bureau:

The nation's official poverty rate in 2010 was 15.1 percent, up from 14.3 percent in 2009 ─ the third consecutive annual increase in the poverty rate. There were 46.2 million people in poverty in 2010, up from 43.6 million in 2009 ─ the fourth consecutive annual increase and the largest number in the 52 years for which poverty estimates have been published (emphasis added).

This information covers the first full calendar year after the December 2007-June 2009 recession. See section on the historical impact of recessions.

The Detroit News broke down what the numbers mean here in Michigan. They point out that more numbers will be out next week, which could drive the numbers higher:

For Michigan, the numbers hint at a substantial rise in poverty. In 2010, the survey showed 15.5 percent of Michigan residents in poverty, up from 14 percent in 2009. Compared to all states, Michigan's poverty rate is 20th, same as last year.

However, the poverty numbers released Tuesday are from the annual Current Population Survey (CPS) of 100,000 households in the country. Although state-level poverty numbers are being released, more accurate statistics at the state level will come out next week with the release of the 2010 American Community Survey (ACS), which surveys 3 million nationwide. Last year, the CPS indicated that 14 percent of Michigan residents were living in poverty; the ACS revealed that far more, 16.5 percent, were.

Over the last five years, Michigan's poverty numbers from the ACS have trended higher than the CPS.

DETROIT (AP) - Online retail mortgage lender Quicken Loans Inc. says it plans to hire 500 new workers, mostly based in Detroit.

The Detroit Free Press and The Detroit News report the company plans to kick off the hiring effort with a job fair Saturday at its downtown Detroit headquarters. The company wants to hire immediately for several areas including mortgage banking, marketing and technology.

The event runs form 10 a.m. until 1 p.m. Job listings are posted online.

Filmmaker Heather Courtney didn't set out to make a war story. "I set out to make a story about rural America," she says. Her new documentary, Where Soldiers Come From, is both war story and small-town homecoming saga; it follows a group of young men who sign up for the National Guard, serve in Afghanistan, and then return home to their families in Michigan's woody Upper Peninsula.

Courtney joins NPR's Scott Simon to discuss the documentary, along with two of the young soldiers featured in the film, Dominic "Dom" Fredianelli and Matt "Bodi" Beaudoin.

Well, the week is over, and it’s time for a little quiz. First of all, who said last night: “It’s time to stop the political circus and actually do something to help the economy.“

Not surprisingly, that was President Obama, in his nationally televised speech on jobs. Okay, now, who said this a few minutes later: “We are in a crisis, and cannot afford to waste time on unproductive political posturing and partisan fighting.

“It’s time to make the tough decisions needed to reinvent the United States.” This time, that wasn‘t the president, but our own Republican governor, Rick Snyder. His response to the president’s speech sounded much more cooperative than confrontational.

And that attitude might just contain a tiny sliver of hope. Now, I know that Rick Snyder is not Speaker of the House John Boehner.

Nor does every Michigan Republican think the same.

user hyperboreal / Flickr

"Get up. Get out. And go see something we'll remember for the rest of our lives."

So says the new radio ad from Pure Michigan urging people to get outside and take in the fall colors in Michigan.

The ad is part of a TV and radio campaign that runs through mid-October according to the Detroit Free Press:

The budget is $2.4 million.

Among the new radio ads promoting Michigan tourism feature Holland and St. Ignace. They'll run in-state plus in Fort Wayne, Toledo and South Bend.

Other targets for "Pure Michigan" ads this fall are the good citizens of Chicago, Indianapolis, several Ohio cities, Milwaukee and Green Bay.

Here's the television ad. Effective?

Pew Charitable Trusts

The report "Downward Mobility from the Middle Class: Waking Up from the American Dream" shows a third of children raised under middle class conditions fell out of the middle class as adults.

The report comes from the Pew Charitable Trusts. In the introduction, researchers cite a popular definition of the American Dream - your children are financially better off than you.

For varying reasons, the dream didn't work out for one third of the people they looked at.

The report used data from the 1979 National Longitudinal Survey of Youth. 12,686 young men and women who were 14-22 years old were part of that survey.

The reports authors define middle class as being "those falling between the 30th and 70th percentiles of the family-size-adjusted income distribution." Or a family with two adults and two kids making between $32,900 to $64,000 (in 2010 dollars).

Author Gregory Acs writes that while the chances of falling out of the middle class reflects what one might expect mathematically, "not all middle-class children are equally likely to fall."

user S 400 HYBRID / wikimedia commons

Saab Automobile AB filed for bankruptcy protection Wednesday.

Saab used to be owned by General Motors. GM sold the company to Spyker Cars in January of 2010.

From the Associated Press:

The owner of cash-strapped car maker Saab filed for bankruptcy protection on Wednesday in a last-ditch attempt to salvage a brand crippled by production stoppages, withheld salary payments and mounting debt.

Swedish Automobile, formerly known as Spyker Cars, said the move would buy it time to receive funding from Chinese investors, currently awaiting regulatory approval, and avoid bankruptcy.

The Wall Street Journal reports this is an attempt at reorganization, similar to Chapter 11 bankruptcy in the U.S.:

Saab Automobile has struggled with its finances for months. Production at its plant in the Swedish town of Trollhattan has been halted since April.

In a bid to solve its long-term funding needs, the car maker this summer signed agreements with two Chinese companies. But Saab will receive no money until regulators in China and Sweden approve the deal, so the company is still strapped for cash.

Dan Bobkoff / Changing Gears

Depending on who you ask, American manufacturing is either the way out of our bad economy, or it’s dead.

Whatever you think, there’s no denying that manufacturing has changed.

That’s the story of Thogus Products in Avon Lake, Ohio.

This manufacturer has changed so much, its President calls it a 61 year-old startup company.

Governor Rick Snyder has signed legislation that would end cash assistance welfare benefits after a family has been receiving payments for 48 months or more. 

About 12,600 cases, many of them families with children, will close and lose their benefits when the law takes effect on October 1.

In a statement, Governor Snyder says four years should be long enough for people to become self-sufficient and some people have been getting cash assistance for as long as 14 years.

Critics of the new limits say many of the people who will lose assistance are families with children, and many of the people who lose the benefits are adults who can’t find a job in a bad economy.

Governor Snyder’s administration says caseworkers will still make sure families who lose benefits will continue to get Medicaid coverage, food assistance, and help with training and job searches.

The savings to taxpayers is pegged at $65 million dollars in the upcoming fiscal year.

Republican state lawmakers say this won’t be the final word this year on changes in the welfare system.

The State House could vote as soon as this week on more limits to public assistance, including making sure automatic teller machines in casinos cannot accept Bridge Cards to make cash withdrawals, and canceling the cards of people with outstanding warrants.

Wisconsin Historical Society

What’s different about our factories? How are things changing in the Midwest, from the way people are trained to what’s being produced?

This month, Changing Gears’ regular Wednesday reports will be devoted to the future of manufacturing.

The days are long gone when all you had to do to get a factory job was know someone. These are not the same places your dad or mom or grandfather worked in. And the expectations of what employers need from you have changed, as well.

We’ll kick the series off tomorrow with a report from Dan Bobkoff. Meanwhile, we’d like to pick your brain.

What kind of factories do you think we’ll be seeing in the Midwest? Which industry will be next to catch hold here?

We’re looking forward to exploring our manufacturing future with you.

Steve Carmody / Michigan Radio

This Wednesday, Flint City Council will consider whether consolidation could be in the city's future.

The Flint Journal reports that a council committee will take up a resolution this Wednesday, with a final decision from council coming next Monday:

Government consolidation in Michigan has been a hot topic since Gov. Rick Snyder told local communities that they would lose out on additional state aid unless they showed a commitment to share services with others to save taxpayer dollars.

Snyder set a Jan. 1 deadline for governments to submit consolidation plans if they want to receive a share of a $200-million pool of funds.

Several local communities, including Burton, Clio, Davison and Davison Township, have already joined the initiative.

The consolidation initiative is known as Future Genesee  and the Journal reports it includes the communities of Burton, Clio, Davison and Davison Township.

screen grab from YouTube video

Yesterday, President Barack Obama told a crowd of around 13,000 in Detroit that the country will rise and fall together:

"Anyone who doesn’t believe it should come here to Detroit," said Obama. "It’s like the commercial says:  This is a city that’s been to heck and back. And while there are still a lot of challenges here, I see a city that’s coming back."

Obama said the nation "cannot have a strong growing economy without a strong growing middle class and without a strong labor movement."

At the event, Obama was previewing his jobs speech, which will be given in front of a joint session of Congress this Thursday (September 8).

"I don't want to give everything away right here, because I want ya'll to tune in on Thursday," Obama said.

"But I'll give you just a little bit.

We’ve got roads and bridges across this country that need rebuilding.

We’ve got private companies with the equipment and the manpower to do the building.

We’ve got more than 1 million unemployed construction workers ready to get dirty right now. 

There is work to be done and there are workers ready to do it.  Labor is on board.  Business is on board. 

We just need Congress to get on board.  Let’s put America back to work."

Here's President Obama's Labor Day Speech:

During the speech, Obama recounted a conversation he had with Michigan Senator Carl Levin:

You know, I was on the plane flying over here, and Carl Levin was with me, and he showed me a speech that Harry Truman had given on Labor Day 63 years ago, right here in Detroit -- 63 years ago.  And just to show that things haven't changed much, he talked about how Americans had voted in some folks into Congress who weren’t very friendly to labor.  And he pointed out that some working folks and even some union members voted these folks in.  And now they were learning their lesson.  And he pointed out that -- and I'm quoting here -- 'the gains of labor were not accomplished at the expense of the rest of the nation.  Labor’s gains contributed to the nation’s general prosperity.'"

(Official White House photo)

 The nation’s home builders are one group expected to closely watch President Obama’s economic address to Congress this week.  Pulte Homes of Bloomfield Hills is the nation’s largest home builder.   

Pulte, like its competitors, has seen its sales plummet as the housing market crashed in recent years.    And past government efforts to prop up the housing market with tax breaks have failed to spur new home construction.      

(photo by Steve Carmody/Michigan Radio)

With the price of gold soaring to near $1,900 an ounce this summer, you may have fantasized about striking it rich prospecting for gold.

Some people are doing more than fantasizing.  They are looking for gold in southern Michigan.  

You wouldn’t think to look at it, but this nondescript campground about 15 miles due south of Battle Creek is one of the centers for gold prospecting in southern Michigan.

Most gold prospectors here are using decidedly low-tech methods.

MSU

The United Auto Workers and Michigan State University collected oral histories from about 125 workers, managers, and others connected to the Fisher Body plant in Lansing.

The plant closed in 2005 after more than 70 years of production. Fisher Body in Lansing was one of the longest operating auto factories in the U.S., according to a Lansing Car Assembly Facebook page.

An MSU labor relations professor, John Beck, headed up the project.

Beck said the oral history recordings "gave a lot of people a voice that they would not have had otherwise."

From an MSU press release:

The plant’s closing in 2005 threatened to effectively bury the workers’ experiences. But through the MSU/UAW partnership, these stories – which run the gamut from first and last days on the job, to tales of racism and sexism, to statements of pride and teamwork – are now part of a digital catalogue at MSU’s G. Robert Vincent Voice Library. The catalogue is called the Lansing Auto Town Gallery.

S&P/Case-Shiller Home Price Indices

Data released today by the S&P/Case-Shiller Home Price Indices show that through June, home prices nationally were back to their early 2003 levels.

But home prices in Detroit were at pre-2000 levels. The Detroit market was down 6.6 percent when compared to the previous year.

That put's Detroit in a bad category along with some "sunbelt" cities, according to S&P/Case-Shiller:

At the other extreme, those which set new lows in 2011 include the four Sunbelt cities – Las Vegas, Miami, Phoenix and Tampa – as well as the weakest of all, Detroit. These shifts suggest that we are back to regional housing markets, rather than a national housing market where everything rose and fell together.

The Detroit Free Press quoted a statement from Patrick Newport, a U.S. economist with IHS Global Insight:

"Detroit, where prices have dropped nearly 50% since peaking in late 2005, remains, by far, the weakest market,” he said. “Detroit avoided a big run-up in housing prices during the boom years, but was hit hard by the recession."

LANSING, Mich. (AP) - Democrats in the Michigan Legislature say they want to revive tax incentives specifically set aside for advanced battery manufacturers.

The industry-specific tax credits are among those scheduled to be phased out under tax policy changes approved by the Republican-led Michigan Legislature and Gov. Rick Snyder.

Democrats say Monday they'll support bills that would continue the industry-specific credits for battery production, facility construction and related activities.

The Democratic plan also would include tax credits for buying electric vehicles and charging stations.

Michigan's tax credit program and federal assistance have helped several battery manufacturers get started in the state. Credits that already have been granted will be honored. But Snyder and Republicans say they don't want to pick winners and losers with industry-specific tax credit programs.

Lindsey Smith / Michigan Radio

“You can drive almost anywhere in the state of Michigan – pick a point at random and start moving – and you will soon come upon the wreckage of American industry.”

That’s the first sentence in a story in this week’s New York Times Magazine about the seismic downturn in manufacturing over the past decade and its tenuous future in the U.S.

For decades, The Times says, the federal government has largely maintained a policy of letting the marketplace dictate the economy. That is, it hasn’t propped up ailing sectors of the economy nor tinkered with aid packages to strengthen niche industries the way China and Japan have maintained active hands in shaping industry.

That’s changed in recent years under the Obama administration. Notably, the federal government rescued American automobile manufacturers and parts suppliers through approximately $82 billion in loans and other incentives. In particular, the government has delivered $2.5 billion in stimulus money to 30 or so companies exploring advanced battery technology. One White House official tells The Times the battery money goes to “the far edge” of how far the federal government is going to create new jobs and boost a nascent industry.

“It’s naïve to believe that we just have to let the markets work and we’ll have a strong manufacturing base in America,” Michigan Senator Carl Levin (D) tells The Times.

The alternative raises questions. What is the federal government’s new role in spurring industry? What’s its responsibility in ushering a transition to a knowledge-based economy? And, as The Times asks in its provocative headline, does America need manufacturing?

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