Once US’s ‘Economic Laggard,’ Michigan’s Economy Is Succeeding Where Ontario’s Has Failed; Here’s Why

Policy changes have had an adverse impact on Ontario's economy, while Michigan's pro-growth policies have helped the state prosper, study finds

A worker on the production line at Chrysler's assembly plant in Windsor, Ont., in a file photo. The Canadian Press/Geoff Robins

The economies of Ontario and Michigan have a lot in common, but while Michigan—once known as the “economic laggard” of the United States—has experienced a surge in economic and employment growth thanks to pro-growth policy reforms, Ontario’s economy has shown a weak performance in recent years because of policy changes that undermined growth prospects, a new study says.

“In the face of daunting challenges, Michigan took charge of its economic future with an ambitious reform package that has coincided with substantial job growth and a rebirth of manufacturing in the state,” said Ben Eisen, senior fellow at the Fraser Institute and co-author of the study. “Ontario should take note of Michigan’s policy reforms and its successful economic turnaround.”