Snyder is violating the Public Trust. Detroit is being demonized. The complexion of the city government isn't pale enough. I mean that sincerely. There is a threat in this that victimizes African American leadership as incompetent. It is a convenient theme for Snyder, although he stands with his African American control freak emergency manager.The circumstances Detroit faces is not all that unusual.
There is a huge difference between corruption and failure. Blanket corruption can lead to failure, but, that does not mean the entire Detroit government was incompetent. Here again, did corruption lead to the financial troubles of the city? Absolutely not. Anyone in the government guilty of breaking the law was investigated, removed and punished for crimes. That has nothing to do with Detroit's failure. Any wrong doing was not citywide and was not central to the city's failure.
Bankruptcy is not going to solve Detroit's problems. Bankruptcy will cause a fire sale and collapse of economic growth for the city.
When a city fails as Detroit has it is because it has lost it's tax base. That is what has occurred here. The reason the tax base is less than half at Detroit's height of prosperity is because of the floundering of the auto industry. There are reasons for that floundering and it has nothing to do with unions. Unions enhanced the quality of life of Michiganders and Detroiters and added to the tax base of the governments from federal to local.
The heart of the problem might seem simple to some, but, it really isn't. When populations diminish in a city is not necessarily consolidated to one area of the city. In other words over half of Detroit's population is gone, but, that is through the entire city. That means city services do not end with low population. Citizens still have emergencies, they still need trash pick up and roads repaired. The problem Detroit has is the size of the city to the tax base it currently entertains. I am sure at some point the city government looked at the possibility of removing areas of the city to consolidate services, but, it isn't easy. If one section of the city is jettisoned the tax base it contributes is also jettisoned. It becomes a nearly impossible paradigm to manage. That is the reality of the city's government.
So, where does Detroit go from here?
Why not take a look at THE EXACT SAME PARADIGM faced by New York City in the 1970s. No major economic issues contributing to it, but, there was a significant fall in population, hence loss of tax base. Same exact thing Detroit is now facing. And, whom was the President of the United States of America during that time in the 1970s? Well, let's look.
December 8, 1975
Both sides claimed a victory, (click here) and both had a point. Finally offering a federal loan to New York City, President Ford denied that he had bailed out the municipality he had so often reprimanded for profligacy. "New York has bailed itself out," he declared. And he added with self-congratulation: "If we had shown any give, I think they wouldn't have made the hard decisions they have made."
New York officials took a different view. They thought they had finally convinced the country — and through the country the President — that New York had to be rescued. Governor Hugh Carey...
New York City was in debt to the tune of over $9 billion. Those were 1975 dollars and not 2013 dollars. In the 1970s a million dollars still meant something, so $9.4 billion in debt was astronomical.
There is a precedent for the help Detroit needs and Snyder didn't give a damn about that. He wants what he wants and no one should stand in his way, including the people of Michigan and their Constitution. I warned you about this guy before the election. He is rotten. There is no other description for him.
Until 1986, the government of New York City continued using loan guarantees and direct loans to support the fiscally-troubled city. All the loans, loan premiums and fees have since been repaid.
New York City did a remarkable thing. They opened up gentrification and focused on the arts and brought revitalization to the city. They kept their ports, bridges and tourist areas alive and built on it.
New York doesn't have gambling either. New Jersey does, but, NYC doesn't. There are a couple of very healthy casinos in Detroit. Now, there needs to be an assessment of the tax base, a concentration of city services to suppose the most dense tax base, zoning reassessment and a value to the city revisited. I see no reason why Detroit across the way from Canada can't be a pleasant and exciting city where corporate headquarters would find a good home.
Midwestern Fortune 500 Companies (click here)
Detroit's city government is missing the boat. The nearest major theme park is in Illinois. What the heck is wrong with a Midwest Disneyland? Waterfront property can be converted into a boardwalk no different than the Jersey Shore.
The city government needs to study the region, come up with real market based / market SHARE options for increasing the income to the city and market that plan to the federal government. This is going to be easier than anyone realizes, they just need to get started.
When one looks across the country, cities are growing. The FUTURE of the world is to develop city dwelling as a primary residence for many. There isn't enough space on Earth for sprawling suburbs. Detroit needs to ride the tide of the challenge of the future. The city government needs a vision, not destruction.
Detroit it not dead. It just needs a prince charming to wake it up.
