Michigan stands as an example of what’s coming to large sections of the American heartland. The state was once one of the wealthiest polities in the world, Detroit was once the most affluent city on the planet, and Michiganders once enjoyed incomes significantly above the national average.
In the 1960s, at the height of American economic might, Michigan possessed the 6th largest economy in the United States. Ahead of states like Florida and Texas, and larger than most Western European nations at the time. Michiganders enjoyed a per capita income some 20 points (and thousands of dollars) higher than the national average. In 1963 the share of manufacturing as a part of Michigan’s GDP was just shy of 50% while the national average was roughly 27%. The state was a major exporter, a major shipping hub (see the now struggling Port of Detroit), and a place of sprawling prosperity.
The state’s demographics in the 1960s census were 90.4% White and 9.4% Black. These African Americans were transplants attracted to Detroit by its large automotive industry and the early arrivals had homeownership rates, rates of income, and rates of net worth much higher than the national average for African Americans at the time.
In short, Michigan was prospering and its strong White majority was among the most economically, socially, and culturally secure in the world.
Today, though, after decades of de-industrialization, financialization, free-trade practices, and cheap labor (to name but a few issues), Michigan is only the 14th largest economy in the nation. A ranking that continues to decline with each passing decade. Michigan’s homeownership rate, which once stood 16 points above the national average, is decreasing and now stands just 7 points above the average.
The once robust manufacturing economy has collapsed from its height of roughly 50% to a share of roughly 18% today (2024) while the number of automobile and parts manufacturing jobs has halved since 2000. This effect is compounded by the fact that Michigan suffered a single-state recession starting in 2000 that would later go on to merge with the eventual Great Recession of 2008. In the period from 2000 to 2009, Michigan lost 861,000 jobs, or 18% of all jobs in the state. This ‘structural transformation’ and the Great Recession have permanently dogged the Michigan economy, particularly in rural areas that still have not recovered from Great Recessione era losses.