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Depressing Michigan Economy Driving Alcohol Sales |
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By David Najor :: 4036 Views
:: :: Business & Finance
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Michigan, USA – "They were buying a $10 bottle. Now they're buying a $6 bottle," said Mike Acho, owner of the Wine Cellar party store in Waterford. "People don't have the money. They're not working, but they still want the alcohol, so they buy the cheaper stuff."
Chaldean business leaders within the Merchants of Michigan association say the state is heading towards the cliff’s edge. Michigan remains the worst state in country. It has the highest unemployment rate in the country, a continually slumping economy and one of the highest foreclosure rates in the nation; experts say much of the increased drinking may be related to people trying to drown their sorrows.
State records agree with the opinion sharing that more customers are choosing to drink at home instead of bars and restaurants. Alcohol purchases nationwide have risen about 2%, total sales in Michigan have nearly doubled that, 3.5%, with residents of the Great Lakes State spending $895 million in 2007. The increase is in spite of a loss in the state's population of more than 46,000 people last year.
The state's Liquor Control Commission spokesman Ken Wozniak tells reporters that, “The 2008 numbers have not been compiled, but we can expect the increase to continue based on the data we're seeing so far."
The greatest increase in alcohol consumption in Michigan was in hard liquor, particularly vodka and whiskey, with residents purchasing -- and presumably consuming -- 282,270 more gallons than the year before.
Wine, too, is on the rise with an increase of 857,415 gallons purchased over the previous year. And people drank more mixed spirits, such as prepackaged rum drinks and wine coolers.
In contrast, beer consumption declined in keeping with a nationwide dip over the last several years that saw more drinkers gravitate toward trendy martini bars.
While beer still is the most popular alcoholic beverage -- Michiganders drank a whopping 204,239,944 gallons in 2007 -- it was a 1.8-million gallon decline over the year before, state officials said.
Bargain booze
And people appear to be shopping for bargains when it comes to stocking their home bars, opting for American brands over more expensive imports.
Blended American whiskey sales, for instance, increased -- though only 1% -- for the first time in 30 years, according to the Beverage Information Group, a Connecticut firm that tracks the industry. And American scotch brand sales increased for the first time in 20 years.
Chaldean convenient store owners are creatively working to help customers cope at risk of losing sales. “Times are very bad in our state. The mismanagement of our economy is very bad, but times will get better and customers who are trying to crawl into a bottle may not be able to crawl out when new leaders in Michigan makes things better,” says Karem Nafsu of Drive-In Liquor. “I know my customers and their family. Sometimes it takes someone like me that enough is enough, you have to go home and be with your family.”
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More Questions Surround Forced Unionization of Small-Business Owners, MHBCCC Funding
<p>The Detroit News' March 22 <a href="http://www.detnews.com/article/20100322/OPINION01/3220302/1008/Forced-unionization--Lawmakers-should-look-into-state-s-collusion-in-organizing-babysitters"><span style="color: #003399;">editorial</span></a> says the Department of Human Services has more explaining to do about why it continues to operate the <a href="http://www.mackinac.org/12106"><span style="color: #003399;">Michigan Home Based Child Care Council</span></a>, even though the Legislature voted to defund the agency.</p> http://www.mackinac.org/12370
A Case for Private School Choice in Detroit
<p>By Michael Van Beek. </p><p>A Detroit Free Press columnist inadvertently makes strong case for universal tuition tax credits and a free school market in Detroit.</p> http://www.mackinac.org/12363
Harding to Discuss Natural Resources, Economic Recovery
<p>Russ Harding, senior environmental policy analyst and director of the Property Rights Network at the Center, will take part in a live chat hosted by <a href="http://www.mlive.com/news/index.ssf/2010/03/are_michigans_natural_resource.html"><span style="color: #003399;">The Grand Rapids Press</span></a> at 11:30 a.m. on Tuesday, March 23 (see grey box in Press story titled "Michigan 10.0" for details). The talk will be about how Michigan can best use its natural resources to drive economic recovery.</p> http://www.mackinac.org/12364
Testing 1, 2, 3
<p>By Michael Van Beek. </p>How Michigan students fare on standardized tests.
http://www.mackinac.org/12365
What Transparency Should Look Like at the MEDC (but Doesn't)
<p>By James M. Hohman. </p>The award of a $9.1 million tax credit to a convicted embezzler has raised serious concerns about the lack of transparency at the Michigan Economic Development Corporation. The concerns could be alleviated by two transparency/due diligence reforms that would protect the state (and taxpayers) from fraud. However, the real issue is not whether the occasional criminal wins an "incentive" deal, but the lack of transparency that characterizes this entire operation. This is the measure by which the responses of politicians and economic development bureaucrats to this embarrassment should assessed.</P> http://www.mackinac.org/12358
Legislature's Most Persistent Targeted-Incentives Booster to Run Hearings on Embezzler's Tax-Break Deal
<p>By Jack McHugh. </p><p>In the wake of the news that the Michigan Economic Growth Authority awarded a $9 million tax break/subsidy deal to what appears to be a "shell" company created by a convicted embezzler, Sen. Jason Allen, R-Traverse City, has been assigned the task of managing Senate hearings on the vetting procedures used by MEGA and its parent agency, the Michigan Economic Development Corp. During his 11 years in the Legislature, Allen has become perhaps the most ardent promoter and defender of selective tax breaks and subsidies for particular firms and industries. Since 2001, Allen has introduced at least 60 bills in this category, many of them thinly disguised favors benefiting specific companies. Here are concise descriptions of a selection of these bills, from <a href="http://www.michiganvotes.org/">MichiganVotes.org</a>:</p> http://www.mackinac.org/12357
Center Scholar Tapped to Help Warren With Budget Crisis
<p><a href="http://www.mackinac.org/bio.aspx?ID=139"><span style="color: #003399;">Lou Schimmel</span></a>, former director of municipal finance and an adjunct scholar with the Center, has been tapped for his expertise to solve the city of Warren's $10 million overspending crisis.</p> http://www.mackinac.org/12356
The Right Choice
<p>By Joseph G. Lehman. </p>School choice is good for students and the state budget. http://www.mackinac.org/12334
Climate Change Panel Examines the 'Changing Debate'
<p>Henry Payne, editorial cartoonist for The Detroit News, writes about the Mackinac Center's climate change panel, in which he participated, at <a href="http://planetgore.nationalreview.com/post/?q=ZjZjNjJkZDg3MGZlNDVjYmU1OTE4MzQzMWM3NGVlMzY="><span style="color: #003399;">National Review Online</span></a>.</p>
<p>You can watch the event <a href="http://www.michiganliveevents.com/mppi-live032010.html"><span style="color: #003399;">here</span></a>.</p> http://www.mackinac.org/12352
Legislators Should Look Closer to Home to Cut Spending
<p>A <a href="http://www.detnews.com/article/20100318/OPINION01/3180341/1008/Editorial--Drop-gimmicky-plan-to-link-salaries-of-teachers-and-school-superintendents-to-those-of-lawmakers"><span style="color: #003399;">Detroit News</span></a> editorial today calls a plan to cap salaries of public school superintendents and teachers based on what politicians are paid, "gimmicky," and cites <a href="http://www.mackinac.org/12288"><span style="color: #003399;">this commentary</span></a> by Mike Van Beek, director of education policy, which states that only 1 percent of school expenses go toward superintendent pay and benefits.</p>
<p>James Hohman, fiscal policy analyst, does have a suggestion in this <a href="http://downriversundaytimes.com/2010/03/12/legislative-pay-evidence-of-a-larger-problem"><span style="color: #003399;">Dearborn Times-Herald Op-Ed</span></a> about what legislators should focus on if they really want to cut spending.</p> http://www.mackinac.org/12351
Solving the Wrong Problem
<p>By James M. Hohman. </p>Expanding Michigan's sales tax a bad idea.
http://www.mackinac.org/12328
No Checkbook Left Behind
<p>More Michigan public school districts are posting their checkbook registers online as a way for taxpayers to see exactly how their money is spent, but most districts get a failing grade when it comes to transparency.</p> http://www.mackinac.org/12350
MEGA Jobs Announcements Symbolic Drop in the Bucket
<p>By James M. Hohman. </p><p>The Michigan Economic Growth Authority <a href="/12345">yesterday</a> approved its latest batch of tax credits to lure large business projects to Michigan. </p>
<p>Despite the press release, these big business projects are just not that consequential to Michigan's total economy. </p> http://www.mackinac.org/12347
Stealing the Spotlight
<p>By Michael D. LaFaive & Michael D. LaFaive. </p>Convicted embezzler's business wins high-profile state subsidy. http://www.mackinac.org/12345
More Schools Post Spending
Kent County districts, others, report checkbooks now online. http://www.mackinac.org/12346
Climate Panel Video
Did you miss the lively discussion? Watch it <a href="http://www.michiganliveevents.com/mppi-live032010.html">here</a>. http://www.michiganliveevents.com/mppi-live032010.html
Teacher Contracts: An Analysis
<p>By Michael Van Beek. </p><p>Nearly every aspect of a teacher's job falls under the rules of a union contract. The following is a synopsis of just one of those agreements in Michigan.</p> http://www.mackinac.org/12336
Union Corruption Update
<p>By Paul Kersey. </p><p>Recent charges and guilty pleas involving union officials.</p> http://www.mackinac.org/12329
MED March 16, 2010
New 'No Child,' concessions, reading scores. http://www.educationreport.org/12331
Climate Extremes
<p>By Paul Chesser. </p>MichiganScience looks at Climategate.
http://www.mackinac.org/12265
Rejecting State Employee Raise
<p>The <a href="http://www.mirsnews.com/welcome.php"><span style="color: #003399;">Michigan Information & Research Service</span></a> (subscription required) reprinted <a href="http://www.mackinac.org/12281"><span style="color: #003399;">this</span></a> blog post by Paul Kersey, labor policy director, explaining why it would not be a violation of labor law for the Legislature to reject a 3 percent raise for state employees as some lawmakers claimed.</p> http://www.mackinac.org/12314
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