[MrBrooks]

with oil going to stupid highs, will only hurt the already ill MI economy even more. I have never seen MI go through this kind of economic trouble. I would venture to say that not since the GD has MI seen this kind of economy.
The North michigan blog posted by Mr. scholes a realtor of petoskey put it in his latest posting as [blood in the streets]

[UpperPeninsulaRon]

Well, once again with great risk of being labeled some pointy headed economist, here are some thoughts:
- With more homes heated by home heating oil in the northeast, they may get hit a bit harder.
- The Michigan economy is hurting not because of oil prices, but because of the very unfriendly taxation and business policy. It is simply hard to do business in Michigan if you are not part of the old line manufacturing establishment or part of the public payroll (Ref: see the post on Michigan teacher's wages being 4th in the country from a few weeks ago). There are few incentives to start a small business enterprise in Michigan.
- With regard to oil prices, oil is just another commodity with prices set on the futures markets based on future oriented risk and opportunity anaylsis of demand and the ability to produce the stuff. Foreign countries are drilling virtually in sight of Key West, but our laws do not let us drill. We have resources available in Alaska, but laws do not let us drill. We have people in Georgia who may not have water because our public policy favors diverting it to save animals. As long as public policy is not questioned, this is the result.

Who is hit hardest? I don't know. The real question is how can we maximize our economic engine for the good of all Americans.

[Frankawitz]

It's funny how the gas prices here in Michigan are over $3.25 and then in other States it's $2.65 or so. Like you can drive from one side of town to the other and find gas prices range from $3.35 to $2.95 Where the hell is the Goverment regulators who check these prices? Oh yeah I forgot Grandhole laid these people off, so there's only a few that can check these Gas Stations out. I know that the station at 12 mile and Harper when you pump gas there the dollar amount starts at 3 to 5 cents before the gas starts to show on the dials,This type of rip off is taking place all over yet the State of Michigan does nothing to stop these people from ripping off the public. Just think if this gas station can do this day in and day out how much money they are making, Cause their sign out front say's Gas prices are $2.97 when your really paying $3.01 so you think your getting 10 gallons for $29.70 when your getting 9.867 gallons now times that by 20 people putting 10 gallons of gas that comes out to 197.342 gallons that should have cost $586.10 but instead it cost customers $593.99 that's $7.89 for every 20 customers and say they have 1000 customers in 3 months that's $7,890.00 so in a year they make an extra $31,560.00 a year that the general public isn't aware of. So with the Governor laying these regulators off just think how many rip off gas stations there are out there.

[baystater]

Originally Posted by UpperPeninsulaRon

Well, once again with great risk of being labeled some pointy headed economist, here are some thoughts:
- With more homes heated by home heating oil in the northeast, they may get hit a bit harder.
- The Michigan economy is hurting not because of oil prices, but because of the very unfriendly taxation and business policy. It is simply hard to do business in Michigan if you are not part of the old line manufacturing establishment or part of the public payroll (Ref: see the post on Michigan teacher's wages being 4th in the country from a few weeks ago). There are few incentives to start a small business enterprise in Michigan.
- With regard to oil prices, oil is just another commodity with prices set on the futures markets based on future oriented risk and opportunity analysis of demand and the ability to produce the stuff. Foreign countries are drilling virtually in sight of Key West, but our laws do not let us drill. We have resources available in Alaska, but laws do not let us drill. We have people in Georgia who may not have water because our public policy favors diverting it to save animals. As long as public policy is not questioned, this is the result.

Who is hit hardest? I don't know. The real question is how can we maximize our economic engine for the good of all Americans.

Pretty good synopsis U.P. Ron. Actually I like pointy head economists. I think Michigan will get hit a bit from the higher oil prices. But like you said the Northeast and CA. will get the brunt of the problems. It's already really expense to live (NYC area) here and the oil prices don't help much. I guessing in the next two weeks we go to $100 a barrel. And think maybe just maybe by the Th of July the barrel of oil goes to $120. Of course I guessing and geopolitics can change quickly. But if the world keep on it current path I think it more than likely.

We shall see.

[allbusiness]

It does amaze me that people will spend so much time grousing about a temporary 30 cent bounce in gas prices (maybe 10%?) that may cost a few bucks more per fill-up, yet allow their state legisalature to ram a permanent 12% increase in the state income tax (from 3.9% of your income to 4.35%) down their throats with little more than a whimper.

[Indentured Servant]

Originally Posted by baystater

Pretty good synopsis U.P. Ron. Actually I like pointy head economists. I think Michigan will get hit a bit from the higher oil prices. But like you said the Northeast and CA. will get the brunt of the problems. It's already really expense to live (NYC area) here and the oil prices don't help much. I guessing in the next two weeks we go to $100 a barrel. And think maybe just maybe by the Th of July the barrel of oil goes to $120. Of course I guessing and geopolitics can change quickly. But if the world keep on it current path I think it more than likely.

We shall see.

Higher fuel prices hurt the Auto Industry....especially the sale of big gas guzzlers like SUV's and some of the larger trucks. Anything that hurts the auto industry hurts Michigan as well. So it is NOT JUST an issue of prices at the pump as Michigan gas stations that threaten Michigan.

[baystater]

Originally Posted by Indentured Servant

Higher fuel prices hurt the Auto Industry....especially the sale of big gas guzzlers like SUV's and some of the larger trucks. Anything that hurts the auto industry hurts Michigan as well. So it is NOT JUST an issue of prices at the pump as Michigan gas stations that threaten Michigan.

You make a very good point about the auto industry being hurt by rising oil prices.
Let me say that I'm not taking the price of oil lightly when it comes to affecting Michigan. It will hurt a bit. But I'm not just talking about gas when it comes to oil/fuel. Granted I don't know how much MI uses oil heat out there but here it a bit, we also use oil to run some power plants as well. Also the production of oil based product (plastics,etc.) here is hurt by higher oil prices. Basically I believe oil is going to kill us this year on the east coast. And probably out on the west coast as well.

[Bydand]

Originally Posted by baystater

Granted I don't know how much MI uses oil heat out there but here it a bit, we also use oil to run some power plants as well.

Michigan is 86.9% gas (natural and propane) for home heating while the east coast is tops for oil (Fuel, kerosene) Maine leads the pack at 79.2%. High oil prices are going to impact the small guys out East a LOT this winter I have a feeling.
US Census Press Releases (http://www.census.gov/Press-Release/www/releases/archives/american_community_survey_acs/003053.html - broken link)

[Bydand]

OK, I was wrong again. That looks like 2003 data set was used. According to the 2006 census, Michigan was #1 with 88.1% using gas, and #26 with 2.4% using oil.
ACS Ranking Tables - American FactFinder

[Br1234]

Profits will be taken soon on wallstreet so oil will come down quick. Please stop worrying. If the "Big Three" would build more energy efficient, desireable cars they wouldn't have to worry.

I'm not green but you have to provide what people want or they will take their money somewheres else.