LANSING, Mich. (AP) — Michigan's economic misery topped the list of issues in the U.S. Senate race long before the debate over rescuing the U.S. financial industry came up.

It's even bigger now as uncertainty swirls around what's next for the nation's economy.

Incumbent U.S. Sen. Carl Levin, a Detroit Democrat and Michigan's longest serving U.S. senator, said his vote last Wednesday in support of the $700 billion rescue plan was made "with many qualms."

His Republican opponent, state Rep. Jack Hoogendyk, said it's a vote he wouldn't have made at all.

Levin and Hoogendyk agree the economy is by far the top concern for voters in Michigan, which has had the nation's highest annual average unemployment rate since 2006.

But that's where the agreement ends. The two candidates differ greatly on how to deal with the economic woes that have caused the domestic auto industry to shed thousands of jobs, forced residents out of their foreclosed homes and made stock markets skittish, raising fears that pension funds and investments could tumble.

Levin, heavily favored to win a sixth term, says the Republican push toward deregulation has left the U.S. economy teetering on the edge of a cliff. The national jobless rate in August was 6.1 percent, the highest rate in five years. Michigan's 8.9 percent jobless rate is its highest since late 1992.

"In a free country, we need to have stop lights and cops to maintain order and keep everyone safe," Levin said in a statement last week explaining his vote for the bailout plan. "The same is true of a free economy: when stoplights and cops are replaced by a drive to achieve total deregulation, the economy is left with a mess — and that's what we face today."

Levin said he has concerns about the rescue plan, but felt it was important to do something to try and protect retirement nest eggs, savings and jobs. He said the legislation signed Friday by President Bush includes some taxpayer protections including more oversight of the financial sector, limits on executive pay and provisions to help prevent more foreclosures.

Hoogendyk, who said government is already too big and too involved in private business, said he would have voted against the bailout plan. He called for repealing the capital gains tax and slashing federal corporate tax rates, a move he said would boost the stock market and cause a flood of investment in U.S. businesses.

Hoogendyk likened the bailout to giving a seriously ill patient painkillers without treating the underlying cause of the pain.

"They might feel a little better for a while, but they're not going to get better," said Hoogendyk, a conservative who lives in Kalamazoo County's Texas Township. "The market will recover if its shackles are taken off."

Four other candidates share the November ballot with Levin and Hoogendyk.

Michael Nikitin of the U.S. Taxpayers Party, Harley Mikkelson of the Green Party and Scotty Boman of the Libertarian Party said they would have opposed the bailout. Doug Dern of the Natural Law Party also is on the ballot but did not respond to questions about his stance on economic issues.

Hoogendyk also said he would have voted against the federal government's $25 billion loan package for the auto industry approved by Congress last month. Levin, like most in Congress, supported the bill to help the industry retool its plants to build more fuel-efficient and alternative-fuel vehicles.

The package was pushed hard by Michigan-based automakers Chrysler LLC, Ford Motor Co. and General Motors Corp., which likely will get the bulk of the loans. The three companies are losing billions of dollars and facing huge debts as they try to remake their lineups amid one of the biggest sales slumps in more than a decade.

Hoogendyk's alternative is no surprise for a lawmaker generally recognized as one of the state Legislature's most anti-tax members.

"The best way to help auto manufacturers, rather than loan guarantees, would be to offer them a five-year exemption from federal corporate taxes," said Hoogendyk, adding the industry could invest the savings in research and development.

The candidates also disagree on the North American Free Trade Agreement.

Levin would reopen the pact to correct what he calls "discriminatory features" that restrict American auto exports. Hoogendyk wouldn't reopen the pact to strengthen labor or environmental standards, but said he would not support any treaty that subordinates U.S. sovereignty.

No matter what happens because of the financial industry rescue plan, both candidates say more must be done to fix the economy.

Levin said the U.S. must keep middle class taxes low, but tax rates for the wealthiest have been unwisely reduced under President Bush.

"It is critically important that we address the tax loopholes and tax havens that allow corporations and wealthy individuals to avoid paying their fair share of taxes," Levin said.

Hoogendyk said he would push for lower corporate taxes, reducing the rate from 35 percent to 12 percent.

"It would do wonders for states that are heavily manufacturing dependent" such as Michigan, he said.

___

On the Net:

Levin campaign: http://www.carllevin.com

Hoogendyk campaign: http://www.jackformichigan.org