Vetoes and Venues: Economic Crisis and the Roads to Recovery in Michigan and Ontario

What is it about?

This article examines executive responses to economic decline in Ontario and Michigan from 2003 to 2012, when the two governments struggled to adjust to a severe manufacturing crisis which greatly worsened during the Great Recession in 2008–2009. Sharing an international border, these cases offer control over an unusually large number of economic, social and political factors, permitting a focused analysis of the impact of divided government and fiscal decentralization on executive policy making. The research finds that greater fiscal decentralization in Canada and unified government in Ontario allowed the province to develop a more rapid and more robust response to the economic crisis in comparison to the State of Michigan. Budgetary constraints and a partisan veto at the state level forced Michigan’s governor to redirect her efforts to the federal venue.

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