Posts tagged with: michigan

Various forms of government intervention negatively affects economic vitality in many ways, however few policies impact the market as directly as wage laws. The $15 minimum wage law in Seattle dramatically influences determinants of business owners’ hiring practices. In many cases, wages are the highest economic cost in the production process, making hiring new employees a risky endeavor. Regardless of size, businesses of all scales must turn profits to stay operational and risk potential losses each time they hire new associates. Extra government mandates and regulations only make this natural market process more onerous.

While wage laws intend to immediately increase pay for the working poor, they severely hinder not only full time employment, but employment itself. Government mandated wage policies erect an artificial economic barrier that increases the supply of, but reduces the demand for, labor. Minimum wage mandates, contrary to their original intent, directly harm the groups they are designed to help. Government intervention in business typically aims to cure certain social ills, but the Utopian desire to cure humanity of all suffering leads to various economic distortions, sending false signals to consumers and producers. This is especially evident in wage policies.

Minimum wage laws primarily target the working poor, about 2% of the working population. Typical of intrusive government intervention, rather than having little to no effect, the laws have an active negative effect. As a labor demographic, the poor are least likely to possess marketable skills necessary to higher level employment and often rely on low-wage, unskilled jobs before developing their talents. When government forces business to pay above the market rate for unskilled work, this results in unemployment of the poor. Minimum wage laws price the poor right out of the labor market and rob them of work that may potentially lead to greater opportunity. African American communities particularly suffer from wage controls. Noble Prize economist, Milton Friedman, dispelled the incorrect perceptions of minimum wage laws in the 1960s and 1970s saying, “the most anti-negro law on the books of this land is the minimum wage rule.” The workers who retain their employment undoubtedly benefit from such wage increases, but at the expense of others. (more…)

Bridge-building-w-cranesThe state of Michigan is in the midst of something of an infrastructure crisis. We’re consistently ranked as among the states with the worst roads in the nation, something of an embarrassment for what used to be the automotive capital of the US. This infrastructure challenge is also no doubt part of a legacy of a state with one of the more troubled economies in the nation over the previous decade. (In spite of all this, Michigan remains a beautiful state with wonderful people, something Thrillist noted in recently ranking the Mitten state as the best state in America!)

To President Obama’s quip about infrastructure to business leaders, “You didn’t build that,” one might be tempted to retort that, in Michigan at least, that’s also increasingly true for the government. The roads aren’t being maintained in anything like a responsible fashion.

The voters of Michigan recently defeated Proposal 1, which was put forth by the state’s politicians as the only feasible solution. The voters actually saw it for what it was: a game of brinkmanship and blame-shifting. The defeat of Prop 1 put the onus back on the elected politicians to actually do their job and undertake the tough work of governing.

There have been a number of other ideas floated after the end of Prop 1, and part of that overhaul of our state’s approach to infrastructure investment and maintenance includes debate over so-called “prevailing” wage laws that require “union-scale wages and benefits on public construction contracts.”

Mike-Rowe-WalmartMike Rowe, the “Dirty Jobs” guy, makes an occasional appearance here on the PowerBlog. Why do we like him? Because he appreciates hard work, honest work, just as we do.

It’s surprising how many people don’t share that appreciation.

On Sunday, Rowe posted, on his Facebook page, a letter he received from a rather unhappy man.

Hey Mike

Your constant harping on “work ethic” is growing tiresome. Just because someone’s poor doesn’t mean they’re lazy. The unemployed want to work! And many of those who can’t find work today, didn’t have the benefit of growing up with parents like yours. How can you expect someone with no role model to qualify for one of your scholarships or sign your silly “Sweat Pledge?” Rather than accusing people of not having a work-ethic, why not drop the right-wing propaganda and help them develop one?

Craig P.


The Great Society only made things worse, says Acton’s co-founder and executive director, Kris Mauren. He gave the final lecture during Northwood’s University’s series, “The Great Society at 50.” Mauren’s talk, titled “Alternatives to the Great Society,” argued that the programs of the Great Society have likely exacerbated issues of poverty and created a “culture of dependency.” A recent article from Midland Daily News summarizes this lecture:

“I am not suggesting we do nothing, but what we are doing isn’t working,” Mauren said. “We need a new paradigm.”

Before Johnson declared war on poverty, society had already created citizen associations.

“Society organized itself to meet needs,” Mauren said. “Fraternal societies helped to care for members.”

These societies helped people with medical care, among other things, and assisted those in short-term need.

At times when large-scale crises occur “that is the exact time for charity… it is appropriate for the government to step in,” Mauren said.


Blog author: sstanley
Friday, April 24, 2015

Acton’s Communication’s Specialist, Elise Hilton, recently penned an op-ed for the Detroit News on human trafficking. She argues that not only is it bigger than people realize, but it’s happening in Acton’s home, Michigan.

The facts are grim:

Michigan’s proximity to the Canadian border and waterways increases the likelihood of trafficking in our state.

Michigan truck stops and hotels are used for sex trafficking.

Major events such as ArtPrize and the North American International Auto Show are also major draws for sex trafficking in Michigan.

Michigan agriculture, manufacturing and construction businesses attract labor trafficking.


Both my parents grew up in Detroit, and my childhood was filled with great trips to visit family for holidays and in the summer. The downtown Hudson’s store was always a destination. One of my aunts worked there, and it was the place to shop. Our trips always included a stop for a Sander’s hot fudge ice cream puff as well. My sisters and I played endless games on the stoop of my grandmother’s home, and a few miles away, rode bikes up and done sidewalks neighborhood sidewalks with our cousins.

That Detroit doesn’t exist anymore. What was once a thriving and beautiful Midwestern city is now a place struggling to remake itself. Harry Veryser, economist and professor at University of Detroit Mercy, has a few ideas as to how Detroit just might make a comeback, and why it ended up the way it is now.


IVCF_bannerEarlier today a federal appeals court handed down an important ruling that protects the liberties of religious organizations.

In the case of Alyce Conlon v. InterVarsity Christian Fellowship/USA, the United States Court of Appeals for the Sixth Circuit rejected a plaintiff’s attempt to enforce state and federal gender discrimination laws on one of the nation’s largest Christian campus ministries.

According to the court opinion, Alyce Conlon worked at InterVarsity Christian Fellowship/USA (IVCF) in Michigan as a spiritual director, involved in providing religious counsel and prayer. She informed IVCF that she was contemplating divorce, at which point IVCF put her on paid—and later unpaid—leave. Part of IVCF’s employment policy is that “[w]here there are significant marital issues, [IVCF] encourages employees to seek appropriate help to move towards reconciliation” and IVCF reserves the right “to consider the impact of any separation/divorce on colleagues, students, faculty, and donors.”

When Conlon’s marital situation continued to worsen despite counseling efforts, IVCF terminated her employment. Conlon sued IVCF and her supervisors in federal district court under Title VII and Michigan law. IVCF claimed the First Amendment’s ministerial exception to employment laws.

The Sixth Circuit rejected Conlon’s claims based on conclusions in the Supreme Courts’ ruling in Hosanna-Tabor Evangelical Lutheran Church and School (2012).