Opinion OTHER VIEWS Our Poor State D avid Littmannn, former lead economist at Comerica Bank and one of the foremost economic experts in the United States, came to Adat Shalom Synagogue in Farmington Hills on Shabbat night, Jan. 11. After he spoke about Michigan's economic decline, I felt an over- whelming urge to pray for all of us who still live and work in this state. "Is Michigan stuck on stupid? Folks, there comes a time when economic pros- pects are so bleak that one must present only the unvarnished reality. Michigan isn't yet at rock bottom ... but the local and state economies will be at that point within the next 3-5 years." That quote wasn't from Littmannn's Jan. 11 speech to Adat Shalom, but was instead said on Oct. 26, 2005, in Littmann's "2006 Economic Forecast for Design and Construction." "We can be assured that Michigan will see even greater economic erosion in 2005, 2006 and beyond, compared to sister states:' he predicted. Littmannn was absolutely right. Michigan's unemployment rate at the beginning of 2008 is still highest in the U.S. Our per-capita personal income has been below the national average for eight years in a row. More than 100,000 people have left the state in the last three years, almost half between the ages of 25-39, 80 percent of Littmannn gave this criticism before them college graduates. last year's budget fiasco in which our David doesn't blame China, the auto elected officials raised the state income industry, escalating oil prices or the sub- tax 11.5 percent and proposed levying a 6- prime housing fiasco. He argues, instead, percent service tax on dozens of arbitrari- that Michigan's government, taxes and ly selected services. After severe scorn, burdensome regulations are mostly to the legislature, after desperate last-minute blame. According to Littmannn, negotiations, instead modi- Michigan is not a "right to work" fied the service taxes to a 21 state, is overly constricted by an percent "surtax" on Michigan "archaic" union-based economic business taxes, a punishment structure with severe regulations to companies that may drive and has higher taxes than faster more of them away from our growing states. state. Over two years ago, Littmann's words, however, Littmannn said that Michigan were not all doom and gloom has been "losing ground to on the Sabbath. He mentioned other states on a trend basis that few people realize Michigan Ar nie for half a century." He said we has tremendous resources in Gold man live in a "relatively poor state oil, natural gas, coal and nuclear Corn munity stuck with "this perpetual fis- energy and more inland water Vi ew cal insanity of wanting to raise than other states. Unfortunately, more tax revenue to enable state state laws and regulations don't and local governments to toss more scarce allow companies to access our economic resources into areas of their special inter- energy potential or to sell our own water. ests ... rather than improving statewide In essence, he said "the good news" is incentives for attracting capital and work- that eventually there will be economic ers and maintaining them here." blood, enough losses to force the state gov- He continued that our "own smug, com- ernment to radically reduce spending on plaisant, obtuse, self-made or copycat poli- wasteful, unnecessary projects. cies contribute to an uncompetitive busi- Littmann's prayer is that Michigan will ness climate relative to the other 49 states." finally be forced to reduce spending and taxes, which will be incentives for compa- nies and people to come to Michigan. Until then, the exodus from Michigan will accelerate as businesses continue to suffer. Those of us still loyal to Michigan can tell those remaining that Michigan became like its largest city, Detroit, which has watched 1,150,000 of its citizens leave in the last five decades. I can tell my own story of my son leaving home to work in Chicago and his Jewish friends leaving for New York and California. We can commiserate on the plight of our "poor state remembering the glory days when we bought American cars and felt pride in Michigan. Now, we don't need to feel alone. In 2004, Michigan was the only state in the U.S. to exhibit a payroll employment decline. Today, because of a weak housing market, the credit crisis and slower retail sales, other states are joining Michigan in its eco- nomic doldrums. There's little consolation watching Michigan leading the country downward financially. There is no satisfaction knowing that while our state gets poorer, there may be a lot more free time to pray. El Arnie Goldman is president and part-owner of a small business in southeast Michigan and lives in Farmington Hills. Bush's Middle East Hopes Philadelphia G eorge W. Bush's policies toward the Middle East and Islam will loom large when historians judge his presidency. On the occasion of his eight- day, six-country trip to the Middle East and entering his final year in office, I offer some provisional assessments. His hallmark has been a readiness to break with long-established bipartisan positions and adopt stunningly new poli- cies, and by late 2005 he had laid out his novel approach in four major areas: Radical Islam: Prior to 9-11, American authorities viewed Islamist violence as a narrow criminal problem. Calling for a "war against terror" in September 2001, Bush broadened the conflict. Specifying the precise force behind terrorism peaked in October 2005, when he termed it "Islamic radicalism;' "militant Jihadism" and "Islamo-fascism:" Pre-emptive war: Deterrence had long been the U.S. policy of choice against the Soviet Union and other threats, but Bush A24 January 24 2008 Di added a second policy in June 2002, pre- emption. U.S. security, he said, "will require all Americans to be forward-looking and resolute, to be ready for preemptive action when necessary to defend our liberty and to defend our lives." Nine months later, this new doctrine served as his basis to invade Iraq and eliminate Saddam Hussein before the latter could develop nuclear weapons. Arab-Israeli conflict: Bush avoided the old-style and coun- terproductive "peace process" diplomacy and tried a new Danie approach in June 2003 by estab- Spe lishing the goal of "two states, Comm Israel and Palestine, living side by side, in peace and security!' In addition, he outlined his final-status vision, specified a timetable, and even attempted to sideline a recalcitrant leader (Yasser Arafat) and prop up a forthcoming one (Ehud Olmert). Democracy Deriding "60 years of Western nations excusing and accommo- dating the lack of freedom in the Middle East" as a policy that "did nothing to make us safe," Bush announced in November 2003 "a forward strategy of freedom in the Middle East:' by which he meant pushing regimes to open up to citizen participa- tion. So much for intentions; how, in fact, have things worked out? At the end of his first term, I found that the Bush policies, other than the Arab-Israeli one, stood "a good chance of work- ing:' No longer. Today, I perceive failure in all four areas. George W. Bush and Abdullah of Saudi Arabia, hand in hand: Bush's once-improved understanding of radical Islam has been reversed, to the point that he uses lengthy and inelegant euphemisms to avoid referring to the problem by name, relying on formulations like "a group of extremists who seek to use religion as a path to power and a means of domination." Pre-emptive war requires convincing observers that the pre-emption was indeed justified, something the Bush administra- tion failed to do. Only half the American population and many fewer in the Middle East accept the need for invading Iraq. It created domestic divisions and external hostility greater than at any time since the Vietnam War. Among the costs: greater dif- ficulty to take pre-emptive action against the Iranian nuclear program. Bush's vision of resolving one cen- tury of Arab-Israeli conflict by anointing Mahmoud Abbas as leader of a Palestinian state is illusory. A sovereign "Palestine" alongside Israel would drain the anti- Zionist hatred and close down the irreden- tist war against Israel? No, the mischievous goal of creating "Palestine" will inspire more fervor to eliminate the Jewish state. Finally, encouraging democracy is clearly a worthy goal; but when the Middle East's dominant popular force is totalitarian Hopes on page A25