Governor Rick Snyder campaigned on "reinventing" Michigan. (photo Bill Rice)

The plot of the program was Governor Snyder’s tax cutting strategy—will it work?  Graham asked two local experts for their opinion—Lou Glazer of  Michigan Future think tank fame and Don Grimes, an economist at the University of Michigan.  Both men are mostly positive on Snyder’s program, though Glazer questions the wisdom of Snyder’s tax cuts.  He claims there is no correlation between economic prosperity and tax rates.  I will leave that debate to smarter folks like Glazer and Grimes, but I doubt that Glazer would be so sanguine if his business experienced a 400% tax increase like mine did when Granholm got rid of the old Single Business Tax. It’s always easier to say things don’t matter when they don’t happen to you.

But I digress… some years ago I actually met Mr. Glazer at a meeting in Detroit when he was just starting to wind up Michigan Future. After hearing Glazer’s pitch, I had other ideas for Michigan’s future and actually tried to start a foundation—Michigan 22nd Century—to drive them. But being a man of no great prominence, the Michigan 22nd Century never took off.

I had three core ideas for reinventing Michigan:

1. we need to build the world’s first water based economy (a word that isn’t mentioned in Graham’s program),
2. we need to build a post peak oil infrastructure, and
3. we need to create a state bank to get us out of debt.

I find it curious that so many smart people never mention our state’s debt load when they talk about reinvention.  Here’s an example: last year the Detroit Water and Sewerage Department earned $285 million from its water sales to about four million Michiganders, but it paid $145 million in principal and interest on its debt. 

Think about it!  50% of your water bill to Detroit goes to debt and interest … and people wonder why their water rates are going up! Memo to our thought leaders and politicians—if you don’t do anything about the debt, it will not matter how many taxes you cut (which is why Engler’s tax cutting program didn’t work in a era of ever rising leverage throughout our state).

I also find it curious that politicians and economists have been talking about replacing the auto industry for 50 years and they ignore the state’s only unique resource—its water.  We have it. The world is going to want it. It’s time we make a sustainable Blue Economy out of it.

And finally, any plan to reinvent Michigan is doomed to a repeat-a-vention, unless it confronts the challenge of Peak Oil.  Maybe I missed the email, but how is Michigan supposed to reinvent itself with $4 gas. Make no mistake about it—Libya is not a one off.

It is the beginning of mammoth and monstrous change for us and we better start the real reinvention. Now.

Maybe I missed the email but when did these over paid adult children learn good habits?  Last time I looked, the taxes on my business were still up more than 30% after Granholm and her pals in the Legislature decided to shaft small businesses with the cursed MBT.

Most people don’t realize that the MBT shifted the tax burden from her corporate buddies to small business folks.  Last year my line of credit was taken away even though I had never missed a payment.  In the last two years my health care costs increased 68%.  Any help from our state leaders on that one?  Nope.  Come to think of it, I have been in business for almost 20 years in Michigan and I have yet to receive a single call or email from any city, county or state official, elected or otherwise, asking me if I needed any help.

I wonder how many of Walsh’s friends at Mackinac have actually had to sell a product or service in the last two years in Michigan?  Or make a payroll?  Or personally  lay off an employee? If Michigan leaders want to really learn some lessons, they’ll  stop going to Mackinac and  start a business.  That’s the only way they will learn the real lessons they need to turn around our state.