Tuesday, August 30, 2011

Lucky Us

It appears that few if any areas of federal spending will be spared the ax, as Congress tries to come to grips with the full impact of the cuts made necessary by the budget deal which raised our debt ceiling a few weeks ago. That is how it should be; we spend too much at virtually all levels, and Washington is the worst offender. Even the Defense Department should not be saved from trauma.

Yet in that, Michigan is very lucky. Our own Senator Carl Levin is the head of the Senate Armed Services Committee, so it's a safe bet that our state's fortunes will be protected. That's not to defend any sort of pork barrel spending, but only acknowledging a fact of life with government spending. When you ox might be gored, it helps to have a powerful, long term congressional leader in such an important, shall we say, tactical position.

But more than that: Michigan's defense contracts are mostly in the area of research and development, which will be the last area touched by spending cuts. Yet that is as it should be: with the nature of war changing dramatically in light of global terrorism, the one area we where we must stay ahead of the curve is R&D. Southeast Michigan it seems is a research hot spot. It's one of the few good things in Michigan business these days. Throw in our proximity to the Canadian border as it, for well or for ill, involves Homeland Security issues, and it doesn't appear as though our state will suffer too much in defense cuts.

It may only be good fortune, or the advantageous lining up of the proverbial planets, but at least Michigan won't be hurt much in one segment of our economy.

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