Michigan Residents Pissed About 2023 - Why?

Michigan residents seem angry.

On the eve of a presidential election year, the economy is bumming us out and pollsters are saying that sour mood is making Michigan a toss-up state that will be crucial in November’s elections.

But what’s the reality? Does the data lend support to the harsh vibes? We looked at Michigan’s year through three critical lenses. And we start with…

By most measures, and if you compare to past years, things are going well: the state’s jobless rate is a tick over 4 percent (yay!) and more and more people are either working or looking for work (yay again).

The bad news has been relentless inflation, pushing prices on food, vehicles and rent higher, and hitting an annualized rate of 9.1 percent in June 2022. That rate has since eased considerably.

The annual U.S. inflation rate fell to 3.1 percent last month, a sign the nation may avoid a recession. That’s boosted stock prices (yay, your 401(k)) but lower inflation doesn't mean lower prices. It just means prices are rising more slowly. Consumers are reminded daily how prices have leapt for items such as food.

Yet average weekly wages in Michigan only rose 6.7 percent from mid-2021 to mid-2023. At $1,220, they remain 92 percent of the national average of $1,332, which grew 7.3 percent since mid-2021.

“Follow the money, and the story is clear,” Robert Reich, the former US. Labor Secretary, tweeted last week. “Food corporations are using inflation as cover to jack up prices.”

On Tuesday, Conagra Brands—one of the largest consumer packaged goods companies in the U.S.—announced that it had posted a nearly 60% year-over-year profit increase between December 2022 and February 2023. The Chicago-based company, which makes a long list of grocery staples including Chef Boyardee, Hunt’s, Slim Jim, Reddi-wip, and Marie Callender’s frozen meals, reported a net income of $342 million, up from $219 million in the same quarter a year prior.

Conagra isn’t the only food company making profits off of inflation-driven price increases. At Kraft-Heinz, the multinational food company that makes Oscar Mayer, Jell-O, and Kool Aid, profits for the quarter ending at the end of 2022 were up nearly 450%, compared to the prior year, at $887 million. Tyson Foods, the largest meat company in the U.S., more than doubled its profits (>100% - TG) between the first quarters of 2021 and 2022. And General Mills, which owns Kix, Trix, and Chex among other recognizable cereal labels, saw its fourth quarter profits last year rise 97% compared to the previous quarter. General Mills has raised prices five times since 2021 and indicated last month that another price hike could be coming soon. (Profits fell for both Tyson and General Mills in the most recent quarter, however.)