One big problem is the high property tax rate in Wayne County. Why would anyone want to buy real estate (homes or otherwise) and have to pay thousands of dollars in back taxes? Giving some sort of tax breaks to people willing to buy homes there may just get people to buy homes there.
The state did try to step in, and was rebuffed at every point. Council’s message all along was “just give us money and we’ll fix it.” As if that was ever going to fly. Detroit “leadership” seems to think they’re “owed” something, no idea what.
The forced amalgamation of Montreal was a disaster. First thing to mention was that there was already an overarching municipal council that was forcing the suburbs to pay taxes to support the central city. There was some grumbling, but it prevented serious fiscal problems for the city. Then the geniuses that run the provincial government decided that wasn’t enough. The problem was that they left all the existing structures in place so there are at least three levels of local government. And they are all corrupt. That is why Montreal has had three mayors this year. The anti-corruption squad in the provincial police that couldn’t find a corrupt official if their lives depended on it suddenly discovered an old bribery charge against the previous mayor after he threatened to do something about the corruption.
Incidentally, the island adjacent to Montreal (City of Laval) has also had three mayors since last December.
Detroit failed because it was based upon a single primary industry which began to source globally instead of locally. In about 1986, when I opened up the hood of my new Dodge Aries and saw the Mitsubishi engine inside, I knew Detroit was in major trouble.
Detroit was the world’s largest company town. When it’s primary industry began to fail it didn’t get on the horse and start marketing itself to new companies. Outside companies were intimidated by the thriving unions and expectations of living wages for blue-collar workers. It was much cheaper to build and staff the factories overseas where the living and safety standards are so much lower.
And for many decades past, Detroit had fallen for the old saw that local education should be geared toward the local job market. So they didn’t put an emphasis on intellectual achievement or college prep. This resulted in a large population prepared only for the jobs that were dying out.
The suburbs are not doing so well either. My Dad bought a beautiful estate in Orchard lake for 1.2M around 1988, and sold it for 550K in about 1999. He was incredibly relieved to get that much for it.
The last time I drove through Grosse Pointe, the quintessential wealthy neighborhood, there were 2-3 “For Sale” signs on every block. That was 6-7 years ago.
I’m frankly amazed that the city has managed to hold out this long.
How have American cities (which have gone into bankruptcy in the past) fared?
One example is Fall River MA-it went bankrupt in the Great Depression (1933).
Fall River NEVER recovered-its textile industry died out completely by 1995. It was never able to attract newer industries, despite all kinds of efforts; and its decaying infrastructure is not encouraging new growth. The latest nail in the coffin: the Federal Fisheries commission have announced new catch restrictions upon local fisheries-that means that the Fall River seafood industry will be effectively gone.
I suggest that this is what will happen to Detroit-the best thing for Detroit residents would be a loan program of some kind, to help them move to an economically viable area-it makes no sense to keep this corpse on life support.
If it was unpopular in Canada, it would practically cause a war if Michigan tried it. Like it or not, there is a very deep (real or perceived) racial divide between the City of Detroit and the suburbs. Cobo Center was literally falling apart- the basement parking garage was unsafe and unusable, and the roof had numerous leaks- and yet council did nothing but throw temper tantrums at the prospect of a “regional authority” taking it over to put money into it for repairs and much needed upgrades. Former councilwoman (and delusional imbecile) Monica Conyers was screaming the loudest about how the suburbs were conspiring to “steal Detroit’s jewels.” As if Cobo Center was a “jewel.” :rolleyes: They just refused to accept that if people are going to give you money for stuff, they’re going to want a say in what that money is used for. Detroit basically responded “No! Just give us the money and don’t you dare tell us what to do with it.”
I don’t hold the people sitting there now (Mayor Bing and the current council) responsible for Detroit’s condition. I do hold them responsible for thinking it’s better for them to captain a sinking ship all the way down than it is to let someone else steer for a while and right the ship. The idiocy with the Belle Isle proposal was proof of that.
If anyone is interested, read Detroit: An American Autopsy, by Charlie LeDuff. LeDuff is a Detroit native and Pulitzer Prize winner, who dissects the city’s ills very effectively.
Oh, please. The auto industry is doing fine. The problem is Detroit is try to run a city of 2 million with a population (and tax base) of 700,000.
It’s really not hard to see how this will work out. The creditors will get royally screwed, probably only recovering a few pennies on the dollar. The pensions won’t be hit that hard, but will still get screwed, and a bunch of old people will probably end up on welfare over this. In a civic bankruptcy, the top priority is on maintaining city services, so no they won’t be shutting down the bus lines. There have been plans to privatize the water and lighting departments, and under bankruptcy these will probably be realized. The city would save money by dumping the bloated beaurocracy that comes with these departments and hiring a company to manage these services instead.
There are already plans in place to clear out “unviable” neighborhoods in Detroit. As much as I hate emminent domain, this would be a case where it would be prudent to use it. The state should seize the land and help relocate the few residents that remain. Once they are out, the city would no longer have to provide utilities or other services to those areas.
OK. So what caused all the people to leave Detroit?
Did they leave despite the abundance of automobile-related jobs that were available in Detroit?
Sounds like a decent plan for any city, really.
Exactly..when Hyundai, Nissan, Kia, Toyota, VW, BMW, M-B announced plans to build North American plants, why did they NOT choose Detroit? Was it the abundance of trained workers, low taxes, excellent infrastructure that drove these firms to choose other locations?
We own three Fords, none of which were made in Detroit (I believe they were made in Kentucky).
The decline of the auto industry was a factor. Also a factor was government corruption, the highest murder rate in the country, and high taxes for poor services.
Even if the auto industry was at 1960 levels, there still would have been major flight out of the city and people would have just commuted. Well off people do not live in high crime areas and auto workers are pretty darn well off.
When I lived in Louisville, I knew people who worked at the Ford plant. Very few lived in Louisville, and Louisville is a heck of a lot better than Detroit.
Much cheaper labor elsewhere? From 2009, the report was that although the wages between UAW and Toyota in the US were similar (about $30/hr), when benefits were factored in, GM was paying $69 per worker and Toyota $48.
It wasn’t the price. It was the flexibility. Detroit had all kinds of rules that reduced productivity. Plus promotions based on seniority rather than merit.
It’s not as if Japanese workers are underpaid. These companies didn’t exactly have a culture of seeking out cheap labor. But they did demand that they be able to run their factories the way they knew how, and not with the productivity-killing work rules of the UAW.
A thread I started a while ago: Why did Detroit decline relative to Chicago and Toronto?
You know, you’re saying a lot of things, and I understand the words you’re using, but the ideas are nonexistent :dubious:
If the government does it, that means it’s not legal.
On the basis of population density, virtually all of rural America has lower population density than these “unviable” neighborhoods in Detroit. So do you think your proposal should be done for virtually all of rural America?
Of course not: rural America accepts a lower level of public services and lives within its means–while the big cities demand a Cadillac level of public services.
Good news! Your reflexes are fine! Now if only there was some thought process behind the words. Like exactly WHAT socialist policy you’re talking about.