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Poverty rises and real income falls in Michigan as state now ranks 12th worst in US poverty

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Poverty rises and real income falls in Michigan as state now ranks 12th worst in US poverty


The percentage of Michigan residents living below the official poverty rate increased in 2022 to 13.4 percent, 1.3 million people, meaning the state, a center of US auto production, is now ranked 12th, tied with Ohio, in terms of the percentage of its population living in poverty.

An empty field in Brush Park, north of Detroit’s downtown is shown with an abandoned home. [AP Photo/Carlos Osorio]

Michigan’s median household income now stands at 37th nationally, down from 32nd in 2019. In terms of real buying power, median household income is down 2.6 percent since 2019, probably an underestimate of the real state of affairs. The US Census Bureau reports that real median household income in the state fell in 2022 from 2021 due to the impact of inflation.

With the ending of social support programs implemented during the pandemic, every indicator of social distress is on the rise. This includes Michigan, where the election of the Democratic administration of Governor Gretchen Whitmer in 2018 and reelection in 2022 have done nothing to improve the social position of workers. Since taking office Whitmer has prioritized spending on massive handouts to the auto industry over spending on education, health care and social assistance programs. This included a $1.7 billion handout to Ford for a battery plant in western Michigan, whose future is uncertain.

US Governor of Michigan Gretchen Whitmer speaks at the World Economic Forum in Davos, Switzerland Thursday, Jan. 19, 2023. [AP Photo/Markus Schreiber]

Further underlining the dire situation facing wide layers of the population in Michigan, there was a huge increase in the Supplemental Poverty Measure (SPM), which includes cash income, government assistance and other resources such as tax credits.

The SPM soared from 7.8 percent in 2021 to 12.4 percent in 2022, an increase of more than half, due largely to the ending of pandemic supports. The SPM is now 0.6 percentage points higher than the 2019 level of 11.8 percent.

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Poverty increased despite the fact that the official unemployment rate has remained relatively stable. This testifies to the policies of the unions, which have held pay gains since the start of the pandemic well below the rate of inflation. From 2021 to 2022, average weekly wages in the state rose by just 3.2 percent. For 2022 the official US inflation rate was 8 percent.

The lowering of real incomes in Michigan is not simply the result of impersonal economic forces but reflects the deliberate wage suppression carried out by the UAW and other unions in alliance with both big business parties. Added to that has been the relentless slashing of social support programs. The goal is to attract investment, particularly in the auto industry, by offering Michigan as a low-wage destination.

Democratic Michigan Governor Gretchen Whitmer and UAW President Shawn Fain at the 2023 UAW Special Bargaining Convention [Photo: UAW]

The recent contract agreement signed by the UAW with the Detroit Three auto companies maintains the tier system in which a large section of the workforce are employed as temps earning near poverty wages. The union will do nothing to reverse this trend. The contract does not protect autoworkers’ jobs against the impending mass layoffs as the auto industry transitions to electric vehicle production.

As it stands, workers’ incomes are at one of their lowest levels compared to the average US income. According to Michigan Bridge, the average Michigan resident earns just 87 cents on the dollar of the US average.

US Census figures show Michigan’s roughly 10 million residents in 2022 had an average household income of $57,038, compared to a national average of $65,470. In Detroit, the former Motor City, median household income dropped by 7 percent to $36,453. Median income in Flint, once the center of the General Motors empire, fell 18 percent to $33,036. Michigan was above the US average income for most of the 20th century but has now fallen to 37th.

According to a report this week in the Detroit Free Press, in Flint, the child poverty rate rose to 69.4 percent in 2022, more than double the rate of 34.2 percent in 2021. The jump is largely attributable to the ending of the child tax credit, which the Biden administration allowed to expire in the face of of Republican opposition.

As a result, Michigan’s poverty rate is higher than most states outside the US South. The state’s child poverty rate of 18 percent also ranks 12th in the US. Twenty-seven percent of African Americans and 18 percent of Hispanic residents are in poverty. The poverty rate increased in 49 of 83 Michigan counties.

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The terrible human toll this has exacted is spelled out in the State of Michigan 2022 Poverty Task Force report, which notes that life expectancy in the 48236 zip code, a wealthy suburb in Grosse Pointe, is 13 years longer than the life expectancy in the low income 48201 zip code in Detroit, just a few miles away.

Poverty is spreading throughout the state, with both urban areas such as Detroit and Flint impacted as well as rural northern counties. Lake (22.9 percent), Clare (17.2 percent) and Isabella (19.4 percent) counties in the central Lower Peninsula have some of the state’s highest poverty rates, as does Wayne County (21.2 percent), which encompasses the city of Detroit, and Genesee County (16.4 percent), home of Flint (US Census Bureau statistics).

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The poverty rate in the City of Detroit, despite its touted revival under Democratic Mayor Mike Duggan, stands at 33.8 percent. According to the Detroit Food Policy Council, 69 percent of households in the city were food insecure in 2021.

Largely as a result of the rollback earlier this year of the pandemic increase in Supplement Nutrition Assistance Program (SNAP) benefits, food insecurity is also increasing in Michigan and nationally. According to the US Department of Agriculture between 2020–2022 11.9 percent of Michigan residents went without food at some point due to lack of resources. In 2021 69 percent of Detroit residents were food insecure. (Detroit Food Policy Council)

Lisa Chapman, the director of public policy for the Michigan Coalition Against Homelessness, told Bridge Michigan of the rise in poverty, “It’s not surprising.”

According to Chapman, inflation led to rising rents (up to $1,367 for a one-bedroom apartment, from $1,100 in 2020) and other increases. The organization saw an 8 percent increase in homeless people, she said, rising to over 32,400 in 2022.

She noted that food pantries have reported increased demand as inflation—though falling—has kept prices far higher than they were three years ago.

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“People don’t have a lot of cushion,” Chapman said, adding that families have to choose what bill to pay. “It’s tragic.”



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Ohio State football instant opinions: Why didn’t Buckeyes use this offense vs Michigan?

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Ohio State football instant opinions: Why didn’t Buckeyes use this offense vs Michigan?


Well, well, well. Look what happens when Ohio State does what it does best – gets the ball to its pass catchers.

Saturday’s 42-17 win against Tennessee in a first-round playoff game in an energized Horseshoe – thanks to a home crowd that drowned out the exceptionally large turnout of Vols fans – was in reverse of what happened against Michigan last month. Instead of running it up the gut over and over and over, Ohio State coach Ryan Day and play caller Chip Kelly went with what works.

The No. 8-seeded Buckeyes went in with a pass-first game plan, and guess what? It worked.

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Duh.

Now it’s on to the Rose Bowl for a rematch against No. 1 seed Oregon. If Ohio State plays like it did Saturday, the Ducks, who defeated OSU 32-31 Oct. 12, will be in for a fight.

Where was this Ohio State offense against Michigan (or anyone else)?

Here’s a novel idea: Get the ball to your playmakers and get out of the way. Who woulda thought it?

Repeat after me, “Wide receivers are the strength of OSU’s offense.”

But for some reason, the offensive play calling against Michigan went against that strength. The neighbor’s dog could have, and probably did, scream at the TV, “Stop running the ball up the middle.” But the Buckeyes kept trying to pound the rock, and UM made them pay. 

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And let’s be honest, it wasn’t just Michigan. Ryan Day and offensive coordinator Chip Kelly hesitated to go all-in on the “pass to set up the run” philosophy all season, and an offense that was supposed to be out of this world did not leave orbit as often as it should have. 

Then lift-off happened Saturday against Tennessee, when Day and Kelly finally went airborne. Result: a 21-0 lead after one quarter that gave OSU enough cushion that ultimately became a comfy sofa.

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The Buckeyes showed their hand out of the gate, throwing on four of their first five plays and scoring on their opening series for the first time since the Oregon game.

No team can abandon the run completely, but when your offensive line is a patchwork product, it behooves you to play to your strengths. And Day finally did.

It took being shamed and embarrassed by Michigan to become the Ohio State offense everyone thought it would be.

Ohio State defense is the real deal

OK, enough about the offensive face lift.

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The defense never needed plastic surgery in the first place. Talk all you want about Jeremiah Smith, Emeka Egbuka and the sexier side of the ball, but for my money the defense deserves MVP for the season. It again was stellar against the Vols, recording four sacks and generally making life miserable for a UT offense that came in ranked eighth nationally in scoring offense (37.3-point average) and ninth in rushing offense (232 yards). The Buckeyes limited the Vols to 17 points and 152 yards on the ground.

Memo to Ohio State QB Will Howard: Don’t throw interceptions

I know, I know, easier said than done. But still it should not be that hard to avoid when you have wide receivers like OSU does. All Howard has to do is let Egbuka and Smith make plays. And preferably relatively easy plays. Howard did that on two perfect passes to Smith; a 37-yard strike in the first quarter and a 22-yarder in the third quarter that made it 28-10.

But he forced a pass to Smith in the first half that Tennessee defensive back Will Brooks picked off at the back of the end zone, ruining a scoring chance that could have made it 28-0, or 24-0 with a field goal. The risky pass simply was unnecessary, given the score.

The momentum shift led to Tennessee pulling to within 21-10 at halftime, with the Vols getting the ball to begin the second half. But Howard redeemed himself with the beautifully-thrown ball to Smith early in the third quarter. 

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Howard otherwise played a heck of a game, finishing 24 of 29 for 311 yards and two touchdowns. This was the QB who can take OSU all the way. That said, maybe it’s nitpicking to point out a potential game-changing interception, but when OSU’s receivers are this good, there is no reason to make easy plays more difficult.   

Knoxville North as Tennessee fans invaded Ohio Stadium

Whether due to Ohio State season ticket holders reselling their seats to Tennessee fans or Vols Nation gaining access to a promo code that allowed UT fans to buy up more than their 3,500-seat allotment, there was a lot of orange in the Horseshoe. Estimates had the crowd breakdown as 65% OSU fans, 35% UT fans, but regardless of the exact numbers it almost certainly was the largest attendance for a visiting fan base in stadium history.

Many Ohio State fans watching at home were not happy with the large Tennessee turnout, but there was a bright side to Ticketgate. The smaller OSU crowd was louder than when the Shoe is clothed in 90% scarlet and gray. 

What gives? My guess is those Ohio State fans who sold their tickets on the secondary market are the same ones who sit on their hands during games. Replacing them with loud and proud Buckeyes fans made a big difference. 

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My suggestion for OSU athletic director Ross Bjork is to configure future fan seating so that those who actually care about making noise get some type of preferential treatment. Challenging, I know, given that big-money donors want the prime real estate between the 50s. But if you really want to change the atmosphere, then do what it takes to change it.

Along those lines, the playoff opener felt more like a college football game than a minor-league baseball game, thanks in part to the College Football Playoff people taking over game-ops from Ohio State. There were fewer in-game announcements on the video boards and fewer on-field presentations. Refreshing.

roller@dispatch.com

@rollerCD

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Detroit NAACP demands legislature reconvene, criticizing lawmakers who walked out

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Detroit NAACP demands legislature reconvene, criticizing lawmakers who walked out


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The Detroit chapter of the NAACP released a statement calling the Michigan House of Representatives to be reconvened before the end of this year’s legislative session on Dec. 31. On Thursday after a tumultuous week of walkouts and absences, House Democrats adjourned with no plans for further voting.

House Republicans and state Rep. Karen Whitsett, D-Detroit, failed to attend sessions this week, walking out in protest.

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The Republicans walked out together, hoping House Democrats would put up for a vote bills meant to preserve the tipped minimum wage in Michigan for servers and bartenders. Whitsett skipped Wednesday and Thursday for different reasons, telling reporters earlier this week that she left because she felt legislation on the table had been rushed.

Reverend Wendell Anthony, president of the Detroit NAACP, chastised those who missed the legislative sessions and demanded the House reconvene.

“Staying at home when you should be at work, hanging out in the halls or in a secure office when you should be doing the work for the people is shameful politics,” his statement reads.

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In their plea for the legislature to return to Lansing, the NAACP floated the use of Joint Rule 15, a facet of the Joint Rules of the Michigan Senate and House that grants the Senate majority leader and the House speaker power, acting together, to convene either chamber of the legislature at any time in case of an emergency.

“In a final plea before the year ends, we respectfully call upon Speaker of the House Joe Tate and Senate Majority Leader Winnie Brinks to exercise their power and call the House back to session per Joint Rule 15,” the statement says.

“Power means nothing if you don’t exercise it,” Anthony said in the statement. “Leaving bills stacked on the table when they should be voted on, passed, and signed into law is your job undone.”

Breaking news reporter Liam Rappleye can be reached at LRappleye@freepress.com

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Bagel sandwiches, coffee drinks are stars at newly opened Cafe Fuel in Jackson

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Bagel sandwiches, coffee drinks are stars at newly opened Cafe Fuel in Jackson


JACKSON COUNTY, MI – Cafe Fuel is now welcoming customers to enjoy coffee and company in downtown Jackson.

In October, Fortress Cafe closed its location inside Lean Rocket Lab, leading the nonprofit to open a coffee shop of its own called Cafe Fuel. The new business opened its doors Monday, Dec. 9.

Fortress Cafe is closing downtown store, but new coffee shop will take its place

“Everybody’s super excited to be back and loving all the new options they can pick from,” Director of Member Services Sierra Sibson said.

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People can find a variety of sandwiches, bagels, soups, salads, English muffins and coffee drinks. Popular are the steamed bagel sandwiches, which are usually made with bacon and eggs, or turkey and cheese, Cafe General Manager Faith Seneff said.

“It’s kind of a new thing that people haven’t heard a lot about, but you make your sandwich, put it in a steamer that we have, and it softens it,” Seneff said. “It kind of melts all the flavors together.”

Soups are hits with patrons so far, Seneff said. Options rotate between chicken noodle, broccoli cheddar, loaded baked potato and a tomato basil bisque.

Baked goods come from Jackson’s Doughnation Bakery and The ABC Bakery in Summit Township. Additionally, there is a space where the nonprofit can showcase those participating in the LOCAL Fellows Program, Sibson said.

Fortress Cafe is closing downtown store, but new coffee shop will take its place

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“We’re just trying to utilize local businesses and bring more people in the space,” Seneff said.

Cafe Fuel still brews coffee from Fortress Cafe, which operates a farm and other locations, and Cafe Fuel makes a variety of lattes, cappuccinos, cold brew and hot chocolate.

Coffee fans can join a mug club for $29.99 a month. They will receive a Cafe Fuel mug and can fill it with free drip coffee or get $1 off specialty beverages, Sibson said.

Aside from the food, Lean Rocket Lab reconfigured the seating of the cafe to offer more comfortable options, including, high-top chairs, tables and couches. So far, both Sibson and Seneff have enjoyed seeing the seats full.

“We had a lot of people that are regulars that come in here and they like to work up here, have meetings with each other,” Sibson said. “I think they’re excited to be back.”

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Cafe Fuel, 133 W. Michigan Ave., is open 7:30 a.m. to 4:30 p.m. Monday through Friday and 8 a.m. to 2 p.m. Saturday.

More information can be found on its Facebook page and website.

Want more Jackson-area news? Bookmark the local Jackson news page or sign up for the free “3@3 Jackson” daily newsletter.



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