The Right Help Can Remake Michigan

The Obama administration has appointed Ed Montgomery, former deputy labor secretary, to implement a plan to alleviate the effects of restructuring. Montgomery's plan should not center solely on short-term assistance.
During the Great Depression, the Tennessee Valley was even more deeply affected than the rest of the nation. Congress created the Tennessee Valley Authority, which rapidly modernized the region's economy and transitioned out-of-work residents into next generation jobs. While the times and places are different, a similarly ambitious transformation can be undertaken in Michigan.

We are uniquely positioned to become a global leader in the production of clean energy, advanced battery and new health technologies.

Helping workers and communities transition into these new sectors could be done with existing tools. For example, the Trade Adjustment Assistance program provides training for displaced workers to find employment in new sectors and offers enhanced unemployment benefits while people search for new jobs. An expanded TAA or parallel program could equip thousands with the skills to transition into new industries. A better trained workforce makes Michigan more attractive for new businesses.

In the last Congress, the Michigan delegation led the way to provide grants and loans to produce advanced technology vehicles and batteries. Ford announced it will build its new electric Ford Focus at its Michigan Assembly Plant in Wayne, after retooling the factory using loans from this program. Funding for this initiative should be doubled.

Local governments could also be provided with economic development bonds to offer financing to entrepreneurs unable to access capital in frozen credit markets. With these efforts, Michigan can lead the world in the industries of the 21st Century.
These investments would also ensure that next-generation technologies will be produced in America rather than overseas. Helping to diversify Michigan's economy is not only the right thing to do for struggling families; it is a smart investment in our nation's future.

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