Sunday, July 28, 2013

why detroit failed - peak capitalism/contraction/racism/corruption

boomerangbeat | Early 1950s
  • Peak population at 1.8 million as the automobile industry boomed
  • Automobile factories generated high-profile labor unions, which initiated strikes  in support of benefits, pensions, and increased wages
Mid 1950s
  • Increased competition from foreign auto makers led to several U.S. auto manufacturing mergers
  • Because Detroit had gone all in in the auto industry, the mergers proved problematic as jobs started to disappear (poor planning)
    • Rapid growth from the auto industry boom resulted in social tension and racism as whites repeatedly refused to work with blacks
    • Extensive freeway systems allowed for commuting, causing several to move to the suburbs
    • People in the suburbs meant fewer jobs and a smaller tax base in the city
    • Late 70s – Detroit continued to struggle with foreign auto competition
    • On the verge of bankruptcy, rather than restructure they imposed a city income tax in addition to the state income tax (city/state takes a percentage of your paycheck – based on income – to pay the government)
    • Mayor opted not to battle union concessions meaning public union workers were getting what they wanted with little push back
    • Unions received higher wages and generous pension packages (payment during retirement) that caused the local government to pay millions to people who were no longer working
    • Politicians would often give the unions what they wanted in return for votes (corruption)
    • People will often vote for politicians to break up or weaken public sector unions in order to fix state budget problems
    • Mayor (now a convicted felon) used the city’s credit card recklessly for more than $2 billion, including more than a billion against the city’s pension funds (union workers)
  • Mayor racked up 1/3 of a billion dollars against the city’s pension funds
  • Detroit has had to rely on the state to help pay its government employees
Overarching problem = political corruption. Instead of using money to restore the city, Detroit raised taxes (2.5%, highest in the state) and gave the money to union workers in return for labor peace.


Constructive_Feedback said...

Brother CNu:

This mayor that you speak of - Did he (They) DO THIS ALONE or did THEY operate under the aegis of the "Will Of Their Constituents"?

The Time Magazine cover story on Detroit showed GREAT COWARDICE.

They spoke of "Corruption" and "Incompetent Government" BUT did not correlate the condition of "The People" who they depicted as suffering and on the verge of losing their public pension (if they were city employees) and THEIR CHOICES/INVESTMENTS that they were convinced for many decades were the "Right Way To Go In Support Of The Least Of These".

Greater than "Right or Left", "Conservative or Liberal" is the notion of "THE BLACK COMMUNITY GOVERNANCE CULTURE" - the ability to OPERATIONALIZE a system that expresses one's own permanent interests, showing competency to do so over an extended period of time.

Black people were told to VOTE FOR THEIR SALVATION in Detroit. Later on they were lured into molesting the "governance culture" as they PROTECTED FAVORABLE PEOPLE IN POWER from outside enemies - rather than focusing on the traditional means by which Black People enforce their permanent interests: 'WHERE IS THE MONEY THAT I GAVE TO YOU AFTER YOU SAID I WOULD DOUBLE MY RETURNS? SOMEONE IS GOING TO GET CUT UP IN HERE IF YOU DON'T START TALKING!!"

BigDonOne said...

Detroit had no private colleges...??

CNu said...

nice catch that one...,

CNu said...

If you look up 2nd/3rd line inheritor of the civil rights movement in the Encyclopedia Britannica, wouldn't you find a Kilpatrick family photo album used to illustrate the entry? Plenty folks involved in maintaining and supporting that family business over an extended period of time...,

Ed Dunn said...

This goes back to the HBCU argument I stated a while ago when people got mad at Dr Dre for donating $35 million to USC. None of these HBCUs have any worthwhile innovation/research centers to address urban issues (like Detroit) and seem to be more celebrity namesakes on schools.

Actually, I think BigDonOne made an excellent point

CNu said...

Some country clown was on the radio yesterday making feeble attempts to crack on young folks who hadn't considered his alma mater (which if I'm not mistaken) was north carolina A&T which as it turns out may not be so pitiful as many another HBCU upon which one might cast aspersions....,

Did You Humans Crack This Isht And Then Hide It From Yourselves 70 Years Ago?

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