2005 in Review

The Delphi bankruptcy and the contiung problems at GM and Ford cast a death pall over the Rustbelt.

Both Ohio and Michigan had improved to the point of stagnation (a big improvement over bleeding to death) but it appears the bleeding is about to begin again.

As the nation's treasury is sucked away into Iraq and New Orleans even promised federal help for the Great Lakes is fading fast.

Rustbelt cities continue to self-destruct at the ballot box, with Detroit headed for receivership and Toledo headed for a rerun of earlier follies.

In Michigan, a grand compromise cut some business taxes by .02%, and that is supposed to save the Michigan economy.

In Ohio Governor Bob Taft, a convicted criminal and world-class incompetent, is going to spend another $500 m on his pipe dreams after spending $300+ million to destroy 250,000 jobs.

It's going to be a rough year.

The End of the Middle Class?

Delphi, an auto parts spin-off of General Motors, has filed bankruptcy and ask for new labor contracts.

Delphi has proposed...........


65% wage cuts

At least a 500% increase in out-of-pocket health care costs


Can a worker making $18,000 a year pay $5000 for health care, after taxes.


It is no secret that the Big 3 and the UAW have been committing market share suicide for three decades. Maybe it is time for new leadership?

More Bad News

Both General Motors and Ford are going to pressure parts suppliers to move parts manufacturing overseas.

This will be devastating for Ohio and Michigan.

When does it end? When do we get some leadership?

Economic Miracle in Ohio

Ohio Lt. Governor Bruce Johnson, also head of the Ohio Department of Development, has announced that Ohio's economy has recovered.

Bill Burga, head of the Ohio AFL-CIO, took exception (The Blade, 9/2/2005), as do we.

Curiously, a few days late the Columbus Dispatch (9/4/2005) ran a detailed story about Ohio's substandard economy, including detailed statistics.

Perhaps being delusional is an advantage for a member of the Taft administration, but that does little for Ohio's hurting workers.

Ohio and Michigan in the Dumpster

In a recent ranking in the American City Business Journals (a series of city specific websites), Ohio is tied for 49th (with Illinois) and Michigan is 51st (Puerto Rico is included).

Western states are booming, although we wonder what happens when they run out of water.

No good news on the horizon anywhere in the Rustbelt.

http://www.bizjournals.com/

"Dayton at the Crossroads"

The Dayton Daily News ran an excellent series this weekend on the down spiral and potential recovery of the Dayton metro area.

With the Delphi company teetering on the edge, thousands of jobs are still at risk.

Ohio cries for some good news - but none appears on the horizon.

Rustbelt Population Sags

According to new census estimates, almost every large city in the Rustbelt is losing population.

Much of this results from people moving to the second and third ring suburbs, but evidence mounts that migration to the south and west is going to de-populate the Rustbelt states over the next three decades.

Just as bad, the average age is rising in the Rustbelt states, boding ill for productivity and economic growth. In many states, the cost of elder care may crush the economies.

Michigan In Crisis

The jobs news just gets worse.

http://www.detnews.com/2005/business/0506/16/A01-217883.htm

GM Struggles on

Continuing a strategy of "always being ten years behind the Japanese," GM is taking action to close plants that should have been closed ten years ago (and taking three years to do it).

More jobs down the rat hole.

Good reporting.....

http://www.detnews.com/2005/autosinsider/0506/07/01-207090.htm

Michigan and Ohio Battle

Michigan and Ohio are locked in a battle to have the worst economy in the country.

So far, Michigan is slightly ahead in the worst economy race.

Ohio, on the other hand, is way ahead in the worst Governor race.

Not only is Bob Taft clueless, now he is distracted by the bizarre "Coin-gate" scandal.

Ohio, which is totally controlled by the GOP, as least has a chance of passing tax reform. The reform is gradual, timid, tepid and ten years too late, but it is reform.

Go West, Young Entrepreneur!

Want to start a small business? Apparently the Rustbelt is not the place to be, as featured in the Detroit News.


http://www.detnews.com/2005/business/0505/31/A01-198579.htm

Retiree Health Benefits Crush Michigan

In the 60s, 70s and 80s both businesses and local government units promised lavish retirement health care benefits to workers.

Unlike pensions, few of these benefits were funded, but were left for future revenue streams and future taxpayers.

The benefits promised auto workers are getting wide publicity, but similar benefits were promised to thousands of government employees.

The cash flow has dried up, and now it is a struggle to make ends meet. Governments are cutting services.

Meanwhile, Hyundai just opened a state-of-the-art auto plant - in Alabama.

See the Detroit News, May 24 2005 for futher information.