News Story

Unemployment Rate Dropping But 'Disturbing Trend' As Number of People Receiving Food Assistance Skyrockets

Although Michigan’s unemployment rate has been dropping lately, there’s been a disturbing counter-trend developing over the last decade.

One in five people in the state received government food assistance in 2011, up from 1 in 16 in 2001.

Michigan has seen the number of food assistance recipients climb dramatically during the same time period, increasing from 623,335 in 2001 to 1.9 million in 2011, according to James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy. The state’s population has remained about the same over the last decade. There were 9.9 million people in 2001 and 9.8 million people in 2011.

The number of people receiving food assistance jumped by 152,110 from 2010 to 2011, despite an upturn in the state’s economy.

“More and more people are using other people’s money to pay their grocery bills and the dramatic increase does not appear to be justified by the recession,” Hohman said.

According to the Department of Human Services, the number of people nationwide receiving food assistance increased from 28 million in 2008 to nearly 45 million through January of 2012.

Local and national experts are not sure why this trend is happening.

Michigan’s unemployment rate has steadily dropped since last August. The unemployment rate was 11.2 percent in August and was 9.8 percent in November. The Bureau of Labor Statistics said its preliminary figure for unemployment in December is 9.3 percent.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

Commentary

Feb. 10, 2012 MichiganVotes.org Weekly Roll Call

MichiganVotes.org sends a weekly report to newspapers and TV stations around the state showing how state legislators in their service area voted on the most important or interesting bills of the past week.

Y = Yes, N = No, X = Not Voting

 

House Bill 5075, Court consolidation package: Passed 34 to 4 in the Senate
To consolidate and reduce the number of judges in Michigan courts, as recommended by the State Court Administrative Office. This is one of several dozen bills reducing the number of Michigan judges in particular district, circuit and probate courts. Of little import to regular citizens, this is a matter of intense interest to county political establishments, which for more than a decade have succeeded in obstructing the reform despite widespread recognition the state has too many judgeships (and the costs associated with them). The bills are passing now with unanimous or near-unanimous votes.

Who Voted "Yes and Who Voted "No"

 

House Bill 5125, Allow elimination of road commissions: Passed 63 to 41 in the House
To establish that a county road commission can be eliminated by a county board if the road commission's members are appointed, and eliminated by a vote of the people if they are elected. If either happens, the county board would assume the duty of managing the county's road system. Reportedly, Democratic opposition was (mostly) reversed when the Republican House Speaker made a deal to increase spending on government "early child education" programs by $12.5 million.
 

 

House Bill 5142, Expand “corridor improvement” borrow/spend/tax authorities: Passed 100 to 6 in the House
To expand a 2005 law authorizing local “corridor improvement authorities” that can borrow for various government spending projects (generally but not necessarily related to mass transit), and then repay the loans with money levied in "special assessments" (property taxes), or with tax revenue "captured" from other local government taxing units by means of “tax increment financing" schemes. The bill would authorize multi-government versions of these authorities.

Who Voted "Yes and Who Voted "No"

 

SOURCE: MichiganVotes.org, a free, non-partisan website created by the Mackinac Center for Public Policy, providing concise, non-partisan, plain-English descriptions of every bill and vote in the Michigan House and Senate. Please visit https://www.michiganvotes.org.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.