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Michigan’s economy, population in decline for decades

Michigan’s economy and population have been in constant decline for decades, according to a March 9 Michigan Advance commentary, and most of the state’s 10 million residents are not fully aware of it.

The commentary referred to a statewide poll conducted for the Detroit Regional Chamber in partnership with Glengariff Group, Inc. The poll of 600 voters was conducted between Jan. 27 and Feb. 2, 2026. It found voters think Michigan fares about average compared to other states in education, reading, income and jobs. But, the commentary states, the stark reality is that the state is near the bottom in almost every one of those categories. In one example, survey respondents thought Michigan’s unemployment rate ranked just under 29th when the actual rank was 45th, according to Michigan Advance.

A study by the Urban Institute of Michigan, published in January, revealed that Michigan trailed every state except West Virginia in median household income growth over the past 50 years.

According to the study, Michigan’s average median income has fallen far behind its neighboring states. Between 1970 and 2023, Wisconsin’s median income increased 18.7%,  Ohio’s increased 16.6%, and Indiana showed an increase of 14%, while Illinois shows an increase of 30.2%. For the same period, Michigan’s median income increased by just 2.9%.

On June 17, Rural Insights reported that most U.P. counties experienced smaller gains in household income compared with rural Wisconsin counties. Only Keweenaw, and Mackinac improved their ranks. Keweenaw’s change can be attributable to an influx of college graduates and their associated higher incomes. The Census Bureau estimates that the county now has the highest percentage of persons with a Bachelor’s Degree or higher (41.2%) of any U.P. county, including Houghton and Marquette counties, which are home to two Universities.

No other state has fallen as hard or as fast in per capita income and educational performance as Michigan has. The Detroit Regional Chamber said in February. Michigan’s poor performance on these key metrics should serve as a wake-up call for business leaders, lawmakers, and voters. Michigan continues a precipitous, long-term decline to the bottom of national rankings, which poses a serious threat to the state’s long-term economic competitiveness.

The Chamber went on to say this also reflects the state’s inability to commit to long-term, cohesive strategies that support education, economic development, infrastructure investment, and other key drivers of innovation and economic growth.

The Detroit Regional Chamber is not alone in placing some of blame on state government, and both parties share the blame. According to Michigan Advance, polling analysts point out that both Republican and Democratic politicians consistently mislead voters by claiming Michigan’s future remains tied to heavy manufacturing.

Michigan Advance reported Glengariff Group President Richard Szuba putting much of the blame on elected officials who he said are not telling voters the truth about the root cause of Michigan’s fall from being one of the wealthiest states in the country to one of the poorest.

The Mackinac Center for Public Policy attributes Michigan’s economic and population decline to government over-regulation, high taxation, and “crony capitalist” spending on targeted subsidies, arguing these factors hinder economic freedom.

In January, the Mackinac Center released its 2026 policy recommendations outlining key reforms to strengthen Michigan’s economy, increase government transparency, reduce regulatory burdens, and ensure reliable energy for families and businesses. Among them are:

Creating accountability in economic development programs; rejecting new subsidy programs for select corporations; making government more transparent; reducing burdens on workers; removing unnecessary regulatory barriers that restrict housing supply, job creation and entrepreneurship; ensuring reliable electricity.

In its March 9 commentary, Michigan Advance said ultimately, it’s up to voters to demand that candidates for governor and the legislature enact policies that promote a more prosperous Michigan, if that’s what they want.

Candidates’ “hair isn’t on fire because voters’ hair isn’t on fire,” Czuba is quoted as saying. If voters are content with Michigan’s economic slide, “then nothing is going to change.”

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