Dear John,

Today, the Fraser Institute released a new study, The Power of Comprehensive Policy Reform: Lessons for Ontario from Michigan.

This study finds that even though both jurisdictions were hard hit during the 2009 recession, Michigan has enjoyed a much more successful recovery in the past 10 years. Crucially, Michigan’s economic success coincides with substantial policy reforms, implemented in 2011, that lowered business taxes, increased worker choice, slowed government spending and reduced state debt.

Below is the news release and accompanying infographic. Please share with your colleagues and friends.

Best,

Megan

Megan McElwain | Associate Director of Development, Central Canada
The Fraser Institute
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www.fraserinstitute.org

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Ontario lost nearly 170,000 manufacturing jobs since 2007; Michigan added 47,000 above pre-recession levels

TORONTO—Ontario lost 169,800 manufacturing jobs from 2007 to 2017 while neighbouring Michigan added 47,000 above pre-recession levels over the same period, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“Michigan and Ontario have a lot in common, but while Michigan has revived its manufacturing sector since the recession, Ontario manufacturing continues to struggle,” said Ben Eisen, Fraser Institute senior fellow and co-author of The Power of Comprehensive Policy Reform: Lessons for Ontario from Michigan.

While both jurisdictions were hard hit during the 2009 recession, Michigan has enjoyed a much more successful recovery in the past 10 years.

For example, Michigan not only surpassed its pre-recession manufacturing jobs levels while Ontario did not, but from 2011 to 2017, Michigan’s overall annual private-sector employment growth rate (1.9 per cent, on average) outpaced Ontario’s (1.4 per cent, on average). And Michigan has also outperformed Ontario in terms of per-person economic growth over the same seven-year period.

So why the difference in the two jurisdictions post-recession?

While many factors contribute to economic recovery, Michigan did implement several substantial policy reforms starting in 2011, including: simplifying and lowering the state’s corporate income tax system, passing “right-to-work” legislation to increase worker choice, slowing the growth of government spending and reducing state debt.

“In the face of daunting challenges, Michigan took charge of its economic future with an ambitious reform package that has coincided with substantial job growth and a rebirth of manufacturing in the state,” Eisen said.

“Ontario should take note of Michigan’s policy reforms and its successful economic turnaround.”

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