Republican Governor Rick Snyder Turns Michigan Around, Builds $457 Million Surplus…
Keynesian disciples hardest hit.
Note how the NY Times buries the fact that a GOP governor is responsible for the turnaround in the 16th out of 20 paragraphs.
(NYT) — Over most of the past decade, budget deliberations in Michigan have taken on a glum and familiar monotony: What do we cut now?
But the state that experienced an economic downturn earlier, deeper and longer than most of the rest of the country has made an unlikely discovery as its officials closed out its latest financial books: Michigan has a $457 million surplus.
Even more surprising: Revenues, which had sunk or had been mostly flat for all but one year since 2000, have grown. Not a lot, but grown.
Michigan is the most unlikely example of a phenomenon that was unimaginable in most states in recent years. Though nearly all states are required by law to balance their budgets, most have been able to do so only through rounds of painful spending cuts to make up for deep shortfalls in revenue.
Now, however, as a majority of states have begun collecting tax revenues that are on par with or even above expectations, they face some measure of Michigan’s situation — trying to sort out whether the worst is really over, whether it is safe to start spending again, or whether a rainy day fund may be the prudent course. [...]
Mr. Nixon attributed the improved state budget outlook to the state’s broader economic uptick, but also, in part, to tax and policy changes Governor Snyder pressed. The state replaced a business tax with a corporate income tax that is expected to save businesses $1.5 billion a year, though that change did not take effect until January.
Posted by ZIP on Thursday, February 9, 2012, at 9:12 am | 
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“…Now, however, as a majority of states have begun collecting tax revenues that are on par with or even above expectations, they face some measure of Michigan’s situation — trying to sort out whether the worst is really over…”
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I had no idea the NY Slimes did fiction writing… no wonder no one reads it…
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http://www.zerohedge.com/news/jobless-claims-drop-358k-upward-revised-373k-beat-expectations-370k
Just in case the BLS seasonal adjustment needed a little confirmation prodding, here comes the BLS with its weekly initial claims number which at 358K (next week to be revised to over 360K), was a pleasant beat of expectations of 370K, down from an upward revised 373K the prior week.
Offsetting this was an increase in continuing claims by 64K from 3437K to 3515K, up from an upward revised 3451K.
According to Bloomberg’s Joseph Brusuelas the underlying trend “supports modest improvement in labor market.”
Elsewhere, the net addition to EUCs and Extended benefits was a total of +19k.
What this means is that the layoff wave of the temp worker hiring binge for the holiday season, is now ending. As for actual full time job additions, we will have to wait and see the “unadjusted” BLS data for that.
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Interesting- the majority of the commenters on that article appear to be on trumka’s payroll.
According the them, Snyder basically is a half step removed from grinding up the working poor and unemployed to make food cakes for the rich. And the only thing that saved the state was obama destroying law to give gm to the uaw, and sell chrysler to the italians.
Looks like this momentary spasm of prosperous sanity will be but a passing fancy in Michigan. Shame.
Detroit is still a disaster……..despite what the Chrysler corporation says.
something else you won’t find at the NY Slimes…
the truth about the economy…
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Consumer Credit And The American Conundrum
http://www.zerohedge.com/news/guest-post-consumer-credit-and-american-conundrum
For most American families, who have to balance their living standards to their income, face this conundrum each and every month. Today, more than ever, the walk to the end of the driveway has become a dreaded thing as bills loom large in the dark crevices of the mailbox. What to do?
The conundrum exists because there is not enough money to cover the costs of the current living standard. The average family of four have few choices available to them. The burden of debt that was accumulated during the credit boom can’t simply be disposed of.
Many can’t sell their house because 1 in 4 homes are worth less than what they owe. There is no ability to substantially increase disposable incomes because of a weak employment environment and deflationary wage pressures.
Despite the mainstream spin on recent statistical economic improvements the burdens on the average American family are increasing. Nothing brought this to light more than yesterday’s release of consumer credit data which rose $19 billion following a $20 billion increase in November.
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Detroit is crying racism and demanding their “fair share”.
Rick Snyder has just shown exactly why we need Mitt Romney.
Snyder is a business man, not a politician.
jimmey Seven says:
February 9, 2012 at 10:31 am
“Rick Snyder has just shown exactly why we need Mitt Romney.
Snyder is a business man, not a politician.”
Thank you.
I have no use for politicians that spend their political capital on social issues. Snyder is getting positive things done for the state and Detroit.
If the unions and social bleeding hearts would STFU and get out of the way, he could make even more progress and they would be the main beneficiaries, if they stopped to think about it.
The teachers unions are already reaching with the grubby mitts for the surplus cash. The real test will be if Snyder can resist the pressure to hand over the dough.
This is undoubtedly due, in part, to the billions the federal government sent to GM and Chrysler to save the auto unions, er, industry. They should be thanking us.
I’ll bet he’ll be the next one on the unions recall list. My God we cannot have somebody like this in office.
The NEW YORK SLIMES hides the truth under lies and fabrications