Making Michigan One of The Strongest Economies in The United States - Essay Sample

Introduction

The Michigan status as the automotive capital has played a critical role in making it one of the world's strongest economies. One of the positive impacts of the industry was the rampant advancement in institutions of higher learning. Michigan University and colleges were ranked 3rd and 5th based on doctoral degrees and master degrees awarded. The government granted about $1.5 billion each year for research and development in these universities. The institutions created more job opportunities within the state. Local and international students also relocated to the country to enjoy the facilitates, leading to higher demand for other goods and services. This move promoted other businesses located within the state. The industry became so attractive to many skilled and semi-skilled laborers, given that it paid high wages. By the year 1962, the unemployment level decreased by 4.7% within Michigan State.

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Infrastructures also improved rapidly because railways and water were used to ship cars to New York and Chicago. Mackinac Bridge, which was the longest in the country, was also built within the state. Due to increased infrastructural projects, the state succeeded in attracting numerous tourists. For example, in the national water wonderland, tourism mostly occurred in the Northern lower and Eastern Upper Peninsula.

Making Michigan One of The Most Vulnerable Economies in The United States

The growth of the automotive industry also had severe negative impacts on Michigan State. The large population of Black Americans seeking jobs within Michigan State led to unemployment of the black youths. The presence of riots like the one witnessed in 1967, had worst effects on the economy. It left at least 43 dead, about 467 injured, 7200 police arrests, and more than 2000 buildings destructed.

Also, during a recession in 1958, more than 400,000 employees were retrenched, and most of them could not be rehired due to advancements in technology, which was more capital-intensive. The high unemployment rate leads to an increase in both violent and drug-related crimes. With increased crimes, the White population moved from Detroit to the suburbs, thus losing a lot of residents in the city. With more institutions of higher learning, many universities were turned into centers for social activists and protests. This situation affected their core values and mission to serve more affluent and established society members. All those problems have made the Michigan economy one of the most vulnerable economies in the United States.

Why Michigan’s Economy Remains Tied to the Automotive Industry

Based on reading and research, Michigan's economy is still tied to the automotive industry. At least 4% of Michigan state jobs are from the industry even though employment in the auto industry was reduced by 55%. The positions also pay well, even though the salary has reduced significantly. This dependence is a good thing because Michigan has increased to become the leading car manufacturer in the United States. More so, the interconnection of industries is a good thing for any economy. For instance, the auto workers go to hospitals, buy real estate, and the doctors and workers from other industries buy cars and trucks from the car manufacturing companies located within the state.