ECONOMY
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ROUNDUP
Economics Briefs
ANNE BARGE
OBAMA BROKERS DEAL TO EXTEND BUSH-ERA TAX CUTS AND
FEDERAL UNEMPLOYMENT BENEFITS
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February 17, 18, 19
President Obama announced an agreement
between the White House and congressional lead-
ers that would extend Bush-era tax cuts across the
board for two years as well as extend the federal
unemployment benefit program for 13 months.
According to the agreement, dividends and
payroll tax would remain at 15 percent; there would
be a 2 percentage point cut in payroll taxes for one
year, a one-year cut in Social Security taxes and an
estate tax of 35 percent with a $5 million threshold
for the tax to even be triggered.
Additional tax breaks would also be extended, including an expansion of the earned in-
come tax credit and the continuation of a college-tuition tax credit as well as the child-tax
credit. House Democrats, however, balked at the deal and Obama had to scramble to shore
up support for the plan among his own base. Without the deal, he added, the economy
would be at risk of falling into a double-dip recession. Despite opposition, the deal was
passed in the lame duck session.
U.S. AND SOUTH KOREA ANNOUNCE FAIR TRADE AGREEMENT;
DOMESTIC AUTO INDUSTRY EXPECTED TO BENEFIT
RIVINI
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February 24, 25, 26
President Obama announced that the U.S. had revised a fair trade agreement with South
Korea. The agreement is the largest of its kind since the North American Free Trade Agree-
ment with Canada and Mexico in 1994.
The pact, which requires congressional approval, would support at least 70,000 Ameri-
can jobs, according to Obama, who added that U.S. automakers would gain greater access
to the expanding South Korean market. "It will continue to ensure a level playing field for
American automakers here at home," Obama said.
MICHIGAN ECONOMY CONTINUES TO GROW, BUT AT SLOWER RATE
Metro Detroit"s economy continued to grow in
November, but at a slower rate, according to the
Southeast Michigan Purchasing Managers Index
(PMI), which dropped to 54.2 in November from 67.1
in October. A score above 50 indicates economic
expansion.The Southeast Michigan PMI has scored
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above 50 for 10 consecutive months.
"Southeast Michigan is showing signs of stability
40'
and steady growth for almost a year now;' said Nitin
Paranjpe, an economist and supply chain faculty
member at Wayne State University's business school,
who analyzed the survey data.
More than 85 percent of the local purchasing man-
agers surveyed said they expect the Southeast Michi-
gan economy to remain about the same or improve.
HIRING OUTLOOK BRIGHTENS
Ann Arbor Symphony Orchestra
Great Performances Made In Michigan
Arie Lipsky, Conductor
The hiring outlook is as bright as its been in more than two years, according to Man-
power's latest Employment Outlook Survey, which revealed that 14 percent of employers
anticipate an increase in staff levels in the first quarter of 2011, while 10 percent expect a
decrease in payrolls, resulting in a net employment gain of 4 percent.
The hiring outlook in Michigan is even more optimistic. In Michigan, 17 percent of
employers plan to hire more workers in the first quarter, while 12 percent expect to reduce
their payrolls. Another 67 percent plan to maintain current staff levels, while 4 percent said
they were not yet sure. That would yield a net employment gain of 5 percent.
In Michigan, job prospects appear brightest in durable and non-durable goods manu-
facturing, transportation and utilities, wholesale and retail trade, information, professional
and business services. education and health services, and other sectors.
MICHIGAN GETS FIRST LARGE-SCALE WIND TURBINE
MANUFACTURING PROJECT
Consumers Energy and Traverse-City based Heritage Sustainable Energy announced
an agreement that will result in the first large-scale production of utilities-sized wind tur-
bines fully made in Michigan and hundreds of new jobs.
Northern Power Systems will build the direct-drive wind turbines in its Saginaw facility,
where it will employ up to 137 workers by 2014. The company also plans to use substantial
supply chain resources in Michigan, including strategic supplier Merrill Technologies
Group, also in Saginaw.
The turbines will be shipped to Heritage's wind farm, located in the Upper Peninsula's
Garden Peninsula, where 80 direct and indirect jobs will be created to support the project
development, installation and operation phases.
Heritage said it then will sell the power it generates back to Consumers.
"Development of the wind energy sector is a key piece of Michigan's strategy to diversify
our economy and create clean energy jobs," said departing Gov. Jennifer Granholm."The
agreement ... helps to solidify the state's emerging leadership in this industry:'
ALMOST ONE-THIRD OF STATE RESIDENTS SERVED BY MICHIGAN'S
DEPARTMENT OF HUMAN SERVICES IN FISCAL YEAR 2010
In fiscal year 2010, the Michigan Department of Human Services and its partners served
more than 2.9 million Michigan residents — nearly 30 percent of the state's population.
"Through no fault of their own, an unprecedented number of hard-working families
found themselves short on jobs and opportunities, but not short on work ethic," DHS direc-
tor Ismael Ahmed said. "Due to their situations, they turned to the safety net for temporary
relief"
According to the DHS annual report, the food assistance, Medicaid and the Supple-
mental Security Income (SSI) programs were at historic highs with nearly 2 million people
receiving food and health care assistance. The result: DHS field specialists were handling an
average of 714 cases compared to 320 cases in fiscal year 2002..
2010 - 2011 Concert Schedule
MAINSTAGE CONCERTS
January 22 Mozart Birthday Bash
March 12 Russian Romance
April 30 Mahler's Third
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BENARD L. MAAS FOUNDATION
FAMILY CONCERT SERIES
March 13 Sea to Shining Sea
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Ann Arbor Symphony Orchestra I Ann Arbor, Michigan I www.a2so,com
— By Jackie Headapohi
www.redthreadmagazine.com
RED TIIREAD1
January 2011 15