Study ranks Midland as top economic freedom area in Michigan – The Center Square

(The Center Square) According to a new study, most Michigan cities rank below the national average in a new index of economic freedom.

The Mackinac Center for Public Policy released the study Economic Freedom in the City: Ranking Michigans Labor Markets, which grades metropolitan areas on three major policy areas: labor market regulations, taxes, and government spending.

Midland received the states highest overall freedom score, while Ann Arbor and Grand Rapids-Wyoming also performed well.

The study uses data from 2017 to rank the nations 383 Metropolitan Statistical Areas by the level of economic freedom, accounting for taxes, government regulations, minimum wage burdens, bureaucracy size, and union influence.

Midland beat out all other areas statewide, with an overall economic freedom score of 6.76 out of 10 the state's only metropolitan area that scored above the national average. Ann Arbor scored a 6.66 and Grand Rapids-Wyoming followed with a score of 6.56. Bay City, Flint, and Battle Creek were the worst performers among the states 14 MSAs, with respective scores of 5.62, 5.98, and at 5.99.

Economic freedom can vary widely from nation to nation and from state to state, but it can also vary across local economies within states and across the country, study co-author Dean Stansel, a research associate professor at the Bridwell Institute for Economic Freedom and Mackinac Center adjunct scholar, said in a statement. Academic scholars have produced hundreds of papers using similar national and state-level indexes, finding generally that greater economic freedom is associated with better outcomes on a wide variety of measures. This newer index for metropolitan statistical areas has allowed that research to be expanded to the local level as well.

The study says that there is a strong correlation between greater freedom and economic well-being. It argues that there are positive connections between economic liberty and outcomes such as lower unemployment rates, higher employment, and population growth.

Nationally, Florida received eight of the top 10 scores.

If lawmakers want to attract talent and keep people in the state, it is critical to pass policies that benefit individuals and businesses, MCPP senior director of fiscal policy and study co-auther Michael LaFaive said in a statement. Reducing unnecessary regulations and limiting tax burdens are just a few of the steps that local and state policymakers can take to give individuals access to greater economic prosperity.

Neither Grand Rapids nor Detroit Michigans two large MSAs appeared in the top or bottom 10 of the 52 largest MSAs in the country for economic freedom. The Center Square has previously reported how the Motor City requires 77 steps and more than $6,000 in fees to open a restaurant.

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Study ranks Midland as top economic freedom area in Michigan - The Center Square