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Charles L. Ballard Department of Economics Michigan State University East Lansing, MI

Michigan’s Economy: Past, Present, and Future Presented to Michigan Community College Association July 25, 2014. Charles L. Ballard Department of Economics Michigan State University East Lansing, MI ballard@msu.edu.

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Charles L. Ballard Department of Economics Michigan State University East Lansing, MI

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  1. Michigan’s Economy: Past, Present, and FuturePresented toMichigan Community College AssociationJuly 25, 2014 Charles L. Ballard Department of Economics Michigan State University East Lansing, MI ballard@msu.edu

  2. Education makes a huge difference to labor-market outcomes.(And those differences have increased in recent decades.)

  3. Unemployment Rates in the United States by Educational Attainment, For Workers Aged 25 and Over, June 2014Bachelor’s Degree or Higher3.3%Some College, or Associate Degree 5.0%High-School Graduate, No College 5.8%Less Than High School 9.1%Source: U.S. Bureau of Labor Statistics

  4. Average Earnings in 2012, for Those Aged 45-54 Who Worked Full-Time Year-Round(For the Entire U.S.) MenWomen • Professional Degree $179,967 $119,231 • Master’s Degree $115,702 $ 81,156 • Bachelor’s Degree $ 96,591 $ 62,222 • Associate’s Degree $ 64,159 $ 44,899 • High-School Graduate $ 50,178 $ 35,926 • Some H.S. (No Diploma) $ 37,547 $ 23,648 • Less Than 9th Grade $ 29,367 $ 21,532 • Source: U.S. Census

  5. Michigan does have poor people. But overall, Michigan is not a poor place.

  6. However, although Michigan is not a poor place, our economy has not grown as fast as the national average.

  7. The states that have achieved the biggest income gains in the last generation are the states with the most highly educated work forces.

  8. How are we in Michigan doing, in terms of educational attainment and achievement?

  9. The brightest spot of recent years is the expansion of access to early-childhood education in Michigan.Early-childhood education is the most productive investment a society can make.

  10. Michigan ranks 20th in the country for the percentage of the adult population who have a high-school diploma or equivalent.

  11. Percentage of Population Aged 25 and Over Who Are High-School Completers, 2008-2010, Selected States RankStatePercent RankStatePercent 1. Wyoming 92.2 25. Ohio 87.7 2. Montana 91.7 30. Indiana 86.6 3. Alaska 91.5 31. Illinois 86.5 4. Minnesota 91.4United States 85.3 5. New Hampshire 91.3 36. New York 84.5 6. Vermont 91.1 38. N. Carolina 84.1 14. Wisconsin 89.9 43. New Mexico 83.1 18. Massachusetts 89.0 49. California 80.7 20. Michigan 88.6 50. Mississippi 80.7 23. Pennsylvania 88.0 51. Texas 80.3

  12. In terms of comparisons among the states on the NAEP, Michigan doesn’t do so well. Our rankings among the states in 2013:4th grade reading: 38th4th grade math: 42nd8th grade reading: 32nd8th grade math: 37th

  13. Michigan lags behind the national average in college attainment.

  14. The challenges we face1. I don’t need an education; I’m going to get one of those high-paying factory jobs.

  15. Manufacturing’s Share of the Economy Has Shrunk Dramatically

  16. The challenges we face 2. “What about all those children who can’t learn algebra?”

  17. The Detroit metropolitan area is more racially segregated than any other major area in the United States.Many of the problems of the city and the metropolitan area stem from the lack of a regional focus.

  18. The challenges we face 3. If we just cut taxes far enough– if we just lay off enough teachers– if we just let our roads crumble– then businesses will flood into Michigan!!!!!!!!

  19. Tax Effort Has Reduced Substantially

  20. I have emphasized formal education, but that is not the only game in town.Career and technical education has an extremely important role to play for many of our young people.

  21. To attract and retain talented young people for Michigan, we need more than jobs and educated workers. We need quality of life.

  22. The MIplace Partnership Initiative (Miplace.org) :•Housing choices• Historic preservation•Mixed-use development• Public transportation•Pedestrian orientation• Entertainment and recreation•Quality public infrastructure

  23. Charley’s Wish List:• Continue to expand early-childhood educ.• Extend the K-12 school year.• Support higher education, including community colleges and universities.• Extend the sales tax to services. • Establish a graduated income tax, or raise the flat rate.• Use an independent, non-partisan commission to draw legislative district boundaries.

  24. A song to thee, fair State of mine, Michigan, my Michigan. But greater song than this is thine, Michigan, my Michigan. The whisper of the forest tree, The thunder of the inland sea, Unite in one grand symphony Of Michigan, my Michigan. Michigan, My Michigan

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