Topics in this episode of the State of the State podcast include negotiations around raising the debt ceiling and Governor Whitmer’s State of the State address.

Conversation Highlights:

(2:17) – “Best case scenario, there is a lot of drama and a lot of headlines and eventually we raise the debt ceiling. Worst case scenario, and we came close to a default in 2011, defaulting on our treasury obligations would be catastrophic for the world economy.”

(4:42) – “Most analysts believe that in 2023 either we will have a soft landing – meaning very slow growth but no actual recession – or a softish landing, meaning a mild recession. Right now, no one is predicting a deep recession.”

(5:47) – “There have been some very highly-publicized layoffs in the tech sector. On the other hand, Taco Bell is looking to hire 25,000 workers and Chipotle is looking to hire 15,000.”

(8:15) – Social Security is wildly popular. Any member of Congress who votes to rip up Social Security should be getting ready to sell their house in January of 2025.”

(15:24) – “A lot of it was the same things that were proposed in the campaign and last year. But now anyone who hears them thinks they have a chance of being enacted because there’s a Democratic legislature for the first time in 40 years. You have unified government and a lot of money.”

(17:15) – “It is kind of amusing that one of the first big acts of a new Democratic legislature is likely to be letting an across-the-board income tax decline to go through.”

(20:35) – “Citizenship doesn’t end when you retire.”

(22:50) – “The research is relatively consistent and finds business tax incentives do not result in major increases in business income or any other outcome that states might be looking for, even accounting for the fact that other states would do it.”

(25:10) – “Historically, most laws still pass with bipartisan support. It’s much more dependent on the state of the economy and the budget than it is on state partisanship.”

(27:22) – Even after all the shrinkage of the automotive sector, Michigan is still more heavily dependent on durable goods and manufacturing than the average state. That means bigger ups and downs for the economy because you can put off buying a car, but you can’t put off buying groceries.”

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