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Michigan and Indiana are similar states in terms of demographics and types of industry. Accepted economic models predicted with great accuracy how Michigan would fare through the recession of 2007-2009. Indiana, however, defied the models. Analyses that accurately predicted Michigan's unemployment rates and economic struggles didn't work as well when applied to Indiana. The economic models that accurately predicted Michigan's dire situation in the recent recession also predicted an equally dire situation in Indiana. But the predictions about Indiana didn't pan out. Indiana's fiscal situation, an achievement of the Gov. Mitch Daniels administration, has put the state in a favorable position when compared not only to Michigan but to its other midwestern competitors.

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