In 2009, at the depths of the Great Recession, Michigan ranked 49th in the nation across key economic and growth measures. We’ve made real progress since then — climbing as high as 27th — but many of our challenges began long before the recession. As a result, even as we’ve gained ground, other states have moved faster.
Executive Summary
Decades of slow population growth, industrial disruptions, talent outmigration and policy inconsistency — the “Michigan 180” — have limited our ability to sustain momentum, even during national expansions.
The trends have been building through much of our lives:
- Michigan ranks 50th in household income growth over the past 25 years.
- High-wage professional service jobs, which pay about 20% more than average, have grown 35% nationally but remained flat in Michigan for two decades.
- Over the last 30 years, Michigan has fallen from 16th to 44th in fourth grade reading and now has one of the highest chronic absenteeism rates in the nation.
It’s meant that we’ve struggled to advance against top-performing states in key areas:
- Real median household income: 35th
- Per capita GDP: 36th
- Educational attainment: 35th
The challenge today is twofold: other states are surging ahead, and the pace of change is accelerating. Every year of slow growth widens the gap further. Standing still now means falling further behind.
Families and businesses live these realities every day — tighter budgets and tougher competition. We need to make sure that when people ask, “Can I build a good life in Michigan?” the answer is yes.
Michigan has wrestled with reform and reinvention for decades. The challenges, though, are bigger than any single governor, legislature, political party or interest group can tackle on their own, and are rooted in some of the same forces that once fueled our success.
Meeting this moment will require collective effort and sustained focus. This plan provides the foundation for how we can do that — together — to secure Michigan’s next era of growth and opportunity.
Michigan incomes are falling further behind
Median household income is one of the clearest signals of a state’s competitiveness. For families, it reflects whether they can keep pace with rising costs. For businesses, it signals whether Michigan can grow, attract and retain the skilled workforce and consumer strength that drive a thriving economy. For Michigan to have a fighting chance in this new era, we must ensure that the people who call this state home are thriving, not just surviving.
Real Median Household Income
Our state is 50th in income growth over the past 25 years
Compared to people in other states, the average Michigan household makes:
$5K less than in the average state
$18K less than in Top 10 states
Source: Median Household Income, ACS 1-year estimates
Priority Areas
At the core of Michigan in a New Era are three priorities — the levers that, when pulled with focus and discipline, move everything else. Michigan faces many challenges, but these three areas are within our control and have the greatest power to change our trajectory. They’re the foundation for a stronger economy and a better quality of life for every student, worker, business and community.
Transform Education as Michigan’s Defining Mission
Strong schools benefit everyone. Education fuels opportunity, higher incomes and a stronger economy. Michigan can and must do better for our kids — and other states have shown what’s possible.
Make Michigan the Easiest State to Build and Grow
Michigan must make it easier to be an entrepreneur and faster to build the housing, infrastructure and communities our state urgently needs. Businesses can’t grow without places to invest, and families can’t thrive without affordable places to live and work.
Activate Michigan’s Economic Potential
Michigan’s economic potential lies in putting our assets to work, embracing growth and building what’s next — the conditions for entrepreneurs to grow, workers to advance, and talent to stay and succeed here.
Leading for a new era
There are things we can control and things we can’t. What must be different is our determination to use the same factors that have helped other states reshape their economies and their futures. Michigan’s success will need these elements:
Governor-driven leadership
Reforms with staying power
Public engagement and broad coalitions
Traits of top-performing states
Top-performing states — and those making notable progress toward the top — share key traits. While no state is perfect, successful states create policy and add emphasis around these hallmarks of lasting success.