In June, Gov. Whitmer announced the establishment of a council designed to grow Michigan’s population. The Executive Order states that the “Growing Michigan Together Council” will seek to accomplish its mission by focusing on four areas:
- Jobs
- Talent and people
- Infrastructure
- Education
It sounds great, right? And it looks good in a press release. Unfortunately, behind the scenes, some of the policies the legislature is considering this fall are more likely to bring Michigan to a grinding halt.
The overall philosophy the legislature is using is based on creating more benefits for employees – and doing that through new government mandates. The faulty assumption is that employers will just be able to afford these new benefits. The reality is that most business owners operate on thin profit margins, and new costs do not translate to more jobs (i.e., population growth).
One example on the docket this fall is a wide-ranging bill that would require employers to offer up to 15 weeks of paid leave to all employees. There are no carve-outs for small employers, and employers would have to fund the benefits (likely through payroll contributions). Every employee would be covered, regardless of the number of hours worked.
Of course there are good intentions behind offering paid leave such as allowing an individual to care for a newborn or recover from a serious injury. And many business owners already offer generous benefits. But mandating a one-size fits all scheme is not the right approach, and these are the sorts of policies that have been adopted in California – resulting in a mass exodus to business-friendly states like Texas.
What is the fastest way to bog down business growth and the fastest way to make us less competitive? Government regulation that raises costs for businesses.
