I recently read an article that appeared in the November/December issue of DBusiness magazine by Lou Glazer entitled, “The Path to Prosperity. The article contained many interesting statistics about the value of education. This may not come as a surprise to many of us, but according to Mr. Glazer the characteristics of high prosperity states are a high proportion of adults who possess a four-year college degree. The article quotes Rich Karlgaard, the publisher of Forbes magazine, who says that the most valuable natural resource for the 21st Century is brains. Wherever smart people go, he says, robust economic activity will follow. So where does Michigan rank in this important category? Michigan ranks 34 out of 50 states in terms of four-year degree attainment.
Michigan enjoyed being a prosperous state for many years because the manufacturing industries in our state provided good paying jobs that required relatively low skill. We know that all that has changed, and today manufacturing makes up only about 10 percent of the total workforce in the United States. The way to prosperity is to focus on and attract those jobs that are knowledge based and require the attainment of a four-year degree. According to the article, “of the top 10 states in college attainment, nine are also in the top 12 in per-capita income.” According to a table prepared by the Bureau of Business & Economic Research at the University of New Mexico from data provided by the U.S. Department of Commerce, Michigan has fallen from 20 to 37 in terms of per-capita income from 1990 to 2008. It is obvious to see why Michigan has been struggling with its economy when one reads this statistic.
Another interesting argument that was discussed in the article centered on taxes and the size of government. Mr. Glazer discussed the economic performance of states such as Alabama and points out that “the low-tax, anti-union, low-education attainment environment in the South was successful in attracting low-paying jobs in construction and manufacturing for a while, but as we’re seeing today, that is not the way to build a sustainable, prosperous economy. Low taxes and labor costs are helpful, but they’ll only take a state so far.” So, what is important for a state to invest in to attract high quality talent that pays high wages that, in turn provides much needed revenues to the state treasury? The answer may lie in looking at those industries that have seen the most job growth over the last decade, which are health care and education. Both of these industries have the basic requisite of a four-year college degree.
I write about the importance of a four-year college degree because, as the article indicates, “the path to prosperity is the broad knowledge-based economy defined as industries where 30 percent or more of the employees have a four-year college degree.” Attainment of the much needed college degree also, in my opinion, depends upon a strong system of public schools that provide the basis for students to succeed in college. We need strong schools that are capable of providing our students not only the basic skills, but also the advanced skills required to compete with students from other states and other countries. A solid educational base, beginning at kindergarten and continuing through twelfth grade and beyond, is a requirement for success in the corporate world. With a properly trained workforce, Michigan will be able to compete for jobs that will provide growth to the economy in the 21st Century. Let us all advocate for a strong educational system for all of Michigan’s children.