With the state unemployment rate at 8.9 percent in August, foreclosure rates skyrocketing, and an insufficient minimum wage, Michigan’s economy is facing what financial analysts are calling the worst recession since the Great Depression, an outcome that has been developing for nearly a decade.Analysts at the University of Michigan say the state has endured seven years of manufacturing job loss, and 70 percent of those jobs were within the auto industry. What was once a prized possession for Michigan’s economy has been transformed into its most scrutinized source of profit. In 2006, Michigan was the only state with a shrinking gross domestic profit, falling 0.5 percent according to The Detroit News - a result of the significant plunge in the Big Three market: General Motors, Ford, and Chrysler Group.

Roger Durham, Political Science chair at Aquinas, says the current state of Michigan’s economy is a direct result of globalization that has essentially gone untamed. “With free trade being spread out the way it is, Michigan has really been hurt, especially in the auto industry,” Durham said. “Private capital has been able to do whatever it wants without any loyalty to companies or workers.”

With the auto industry no longer a reliable source for supporting the GDP, state economists have been compiling alternative plans for creative profit and job opportunities. Among them is the Michigan Economic Development Corporation’s effort to promote the state’s natural beauty and support environmental sustainability. An example of this can be seen in the high visibility television commercials in which Jeff Daniels encourages prospective employers and business owners to move to Michigan, a plan to bring in a younger generation of workers with fresh new ideas.

Durham also agrees that by focusing on enhancing Michigan’s “green” identity, doors will open up for alternate means of production that could help balance the declining auto industry. For example, he says, “Michigan could turn the auto industry into a mass transit industry…green public policies for mass transit is a win-win for everyone.”

Vijay Dillet, an insurance agent at a local bank in East Grand Rapids, said that Michigan’s economy has significantly effected all banks as well, no matter their stability in the stock market. “The sub-prime [market] has affected a lot of people,” Dillet said. “Every bank has been less profitable in the last year, no matter their national rank.” The bank he works at (which for reasons of confidentiality must remain anonymous) is considered lucky for having only lost $200 million in the last year, as opposed to the billions its competitors lost. Dillet also said that his bank has given out fewer loans because of recent restrictions for those seeking them. “More people are going into debt and losing homes to foreclosures and simply do not have good enough credit or equity to get a loan,” he said.]

Other local businesses are feeling the effects of the state’s economy as well. First year Jersey Junction owner Elias Oliverez said that there has not been a decrease in customers, but with the rising costs of food and fuel, it has been a challenge to make ends meet while keeping prices low. “Like any other business we are being affected by the downfalls of the economy, but we are trying to minimize how that effects our customers as much as possible,” Oliverez said. “Families should not have to worry about where to get ice-cream.”

With so many factors going against the economy, what steps are necessary to improve the future financial stability of Michigan? According to Durham, “The government at both the local and state level needs to ensure that people are paid a living wage.” In addition, he says, “Private corporations need to realize that a little tax can go a long way.” In addition, Durham encourages college students to support local businesses as much as possible.

Hopefully there will be a light at the end of the tunnel.