Daniel Howes, business columnist and associate business editor of The Detroit News, addressed the February 17, 2009, ERC Forum at the Grosse Pointe War Memorial.

Following an introduction by ERC chairman John Chouinard, Howes characterized the metro Detroit area, as “one of the 'hottest' news towns in America.” He added, “That's one reason I continue to live here.”

As an example, the day's big news was the unfolding rescue plan proposed to assist two U.S. automakers, General Motors and Chrysler.

“This President is going to have to weigh the possibility of an auto bankruptcy,” he said, reporting that in addition to the December Federal rescue assistance, they now request $21.6 billion more to stave off bankruptcy.

Because the auto market has collapsed further since the first loans in December, the President faces a dilemma--either push to authorize more bailouts to keep the two solvent, or let them file for bankruptcy.

He said the auto business is going through some very scary times. For example, he noted that if the current proposal were enacted, it would mean that General Motors alone has received $30 billion from the U.S. government in just four months.

Making a tough business climate even worse, Howes said that the interagency task force announced by the President would ensure this becomes a “very political” situation. Journalist Daniel Howes of The Detroit News speaks to the February Fourm

Journalist Daniel Howes of The Detroit News speaks to the February Fourm

Howes noted that both companies have been restructuring for three years by closing plants, trimming their work force, droppping or selling brands (Oldsmobile and potentially Saab and Hummer), discontinuing models, and renegotiating their labor agreements with the United Auto Workers union.

Howes referred to Michigan's lingering economic plight as the “lost decade.” He noted that Michigan has suffered a one-state recession since 2000.

“Michigan has the worst governor in the U.S. using any normal metric,” he said, noting that this presents a great opportunity for the Republican Party.

He said, “The governor is not dealing with the fundamental structural issues.” According to Howes, Michigan suffers from an inhospitable business climate that encourages businesses to locate in other states, and existing businesses to consider relocating where there are lower taxes and fewer restrictions.

Howes commended the Governor for encouraging incentives that have lured the film industry to Michigan. But, he said, to build a truly competitive business climate, that encouragement should not be withheld from existing Michigan business.

Howes commented on the Detroit mayoral race, noting the top three contenders are Dave Bing, Freman Hendrix, and Mayor Kenneth Cockrel, Jr.

He predicted voter turnout of just 11% in the February 24 primary election, which features 15 candidates for mayor.

He compared Detroit to the auto industry, saying that both suffer from budget problems, and bad business practices.

In the City of Detroit, he said, “The schools are close to collapse.”

He was quick to add, however, that while that applies to the public school system, quality education continues to be delivered in Detroit by charter and other non-public institutions.

Howes observed that Detroit's cultural context is more complex than many outsiders realize. He noted the tensions extend beyond labor/management or black/white issues.

According to Howes, currents also playing a part in the prism of its culture are interactions between the city and its suburbs, as well as between the black community and the growing Arab population.

Howes conjectured that keeping Detroit from moving toward a shared vision for the future is a lack of teamwork and trust.

“Our problem,” he said, “is we remember 40 years ago and want to go back!”

In response to a question from a member of the audience about discontinuation of existing home delivery on Monday, Tuesday and Wednesday, the journalist gave several assurances about the future of local news reporting and how the paper it will capitalize on technology.

First, he stressed, “We will still publish a paper every day.”

Second, he explained that on days for which there will be no normal home delivery, “We will be offering a package so you can get it with your mail.” It will also be available at newsstand locations.

Finally, he noted, “We will be beefing up our web site.” As an example, he said that the entire paper in normal newspaper format would be available on the web, including all advertising and coupons.

All this, he said, is to maintain the editorial content while saving money on physical distribution of the product.

He noted that since 2000, we live in a different world business climate. Competition between countries and other political jurisdictions is much greater because, he said, “Capital is more mobile than at anytime in history.”

Michigan business leaders want structural changes in government and will back someone for governor who will bring about those changes.

In addition, the journalist pointed out that with increased use of the internet and its search capabilities, “There are very few secrets.”

Howes is winner of multiple International Wheel Awards for column writing; a four-time winner of Northwestern University's Medill award for general markets coverage; and a three-time finalist for the prestigious Gerald Loeb Awards, including an honorable mention for commentary in 2007.

From 1999 to early 2003, he was based in Germany as the News' European correspondent and automotive columnist, reporting from more than 20 countries on three continents. Before heading to Europe, Howes was the paper's senior automotive writer and an investigative and projects reporter on the business desk.

Howes came to Detroit in 1993 from Virginia, where he covered business, politics and higher education for The Roanoke Times.

In addition to newspaper duties, he is a regular contributor to the Paul W. Smith Show on NewsTalk WJR, 760-AM in Detroit. He appears often on radio and television locally, in the U.S. and abroad.

A native of Canton, Ohio, he holds a bachelor's degree in history from The College of Wooster in Ohio, a master's in international affairs from Columbia University in New York City, and was a fellow at the Knight Center for Specialized Journalism.

Howes lives in Dearborn with his wife and their teen-aged daughter.