BUSINESS
03/18/2010 05:12 am ET | Updated May 25, 2011

Reihan Salam: U.S. Economy Could Parallel Michigan's Decline

Just as the roughly $3 trillion spent on the former East Germany didn't stave off economic collapse, federal bailouts won't bring back Detroit. As Michigan's population shrinks, the state has been left with a public sector designed for a much larger and richer population. This year, Michigan legislators will have to cut 12.5% of the state's budget to close a mammoth shortfall. Rest assured, cuts will be made without any regard for crafting a long-term economic strategy. The "good news" for Michigan, if you can call it that, is that we are all Michiganders now.

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