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Private sector employers were fighting to avoid the unions while the government sector allowed unions to boost it's democratic followers. The taxes needed to be increased in the city in order to pay the government workers. Still fighting the unions and the high taxes in the city, private sector jobs were relocated away from the city. This was not just the BIG 4 this also included shopping centers just outside city limits. Car dealers found it cheaper to do business in the townships as well.
The residents in the city found that they too could have a yard in the suburbs and lower taxes. The automobile made it possible to commute to work if you worked in the city and the tax savings would pay for the gas. Those that chose to stay in the city soon discovered that many of the residents could not find suitable work and turned to small crimes to feed themselves. Than came the burning of the city. The exodus was paramount.
The city still believing that they could manage on this meager tax base continued to work on the democratic base giving away the world with out a chance to succeed. It's true that we are all linked together.
Just as Detroit had liberal democrat unions negotiating with the liberal democrat politicians they helped to put in office, we have the same money laundering scheme going on here in Washtenaw County. The unions just got a ten year contract as a result. It is still fascinating that Detroit took 8 months to pay people for knocking down those houses when the money was given to them by the Feds in the first place. I wouldn't take an IOU from them. Conan Smith has multiple loyalties.
Their needs and concerns are different from Ann Arbor's we are an exurb, not a suburb. He was instrumental in getting Washtenaw County pulled into the Regional Transit Authority that is actually aimed at the metro Detroit area.
Did we need an emergency manager to make this assumption about bankruptcy, as such was inevitable? The EM law is flawed. If a city is going to file bankruptcy, it will do so regardless. That being so, the city of Detroit is such bad shape it needs to be gutted and reconstructed from scratch. This will also require totally new leadership, and not from the major candidates now running. Mike Duggan was connected to the corrupt leadership of the late Ed McNamara, as was disgraced, convicted former mayor Kwame Kilpatrick and former governor Jennifer Grantholm, all were protegees of the former Wayne County executive.
We won't even get into the city council who past and present has disgraced itself. Without new leadership getting out of bankruptcy will not matter. The mayor does not have the power to declare bankruptcy and city council didn't have the nerve or even the understanding of how to hire a competent bankruptcy lawyer.
This is exactly why we need emergency management. The governor was able to appoint someone with both the power and expertise to kick this off. Snyder gets my vote in for saving Detroit from its own crony politics. Nothing will change in Detroit! When the EM leaves and the reins of government are returned to the elected officials, it will be democrats in conjunction with their union accomplices that will begin the swirl down the wazoo again! Please cite specifics regarding Duggans alleged corruption Duggan is far and away the best person to be the next Mayor.
He Duggan was McNamera's hatchet man There is no one else remotely qualifies unless we continue with race card politics. Detroit exemplifies the danger of relying upon single stream employment. Disappear half the UM in a generation and tree-town could very easily become the next chopped block. LXIX- You are correct about online education. The high cost model of college campuses is about to be in real trouble. As former graduates struggle with student loans and underemployment, fewer students will matriculate.
There is no way this can continue. In a state that depended on this economy, Ann Arbor will rightly feel some of the pain. Of course lending rates will be affected. Of course property values are affected. Ann Arborites have their own share of the responsibility and consequences. A state with less tax revenue to pay for teachers is just another consequence.
Time for the bill to be paid for choices from all people. The Detroit auto industry is directly responsible for my switch to Honda back in the 70's. They were too arrogant to see what people would need. When they did that, and even Detroit's top public officials started really complaining about the crime problem, it was no longer legitimate to say that whites were racist for leaving.
Safety comes first. The commonality is called the Democratic Liberal cabal who has an agenda. Spend other peoples money because you have none and it is easy to do. The commonality is that they are all places where democrats are found. Democrat problems. People left. Property values dropped. Dumbfounded the corrupt chief ordered that everyone at the party be jailed.
Fires broke out soon thereafter. Suburbia was in and all the cities back then were in trouble. Hello school bussing and the new DDAs!
The rise of the Japanese machine started with cheap tin cans that got better mileage during the Opec Oil manipulations of supply and prices. Now who is responsible for decline in Detroit and the Big Three? It's those Stupid voters again. I get the feeling LXIX that in you were not yet born. I did live through the riots albeit as a youth. You have some of your story out of order. The riots happened first. Middle class flight that includes all races started shortly after and ramped up with the infamous Coleman Young declaring that all of Detroit's problems emanate from north of 8 Mile.
The flight of the auto plants is a separate issue. If you wish to place blame it can fall squarely on the greed of the UAW, the acquiescence of management to union demands, value of the yen vz. It didn't help when Vincent Chin was beaten to death by two autoworkers in for the crime of being Asian. What executive in their right mind would drop a major investment into this caldron? For sure. Economic opportunity beyond frontline military grunt somehow favored non-minorities everywhere in the United States.
Not that Automobile manufacturers and public institutions were quietly biased in any way against minoritties back then - or today. Its all about money to some. Who has it, and who keeps others from getting it back. When people revolt leadership everywhere takes notice and change happens. The riots in Detroit and marches amassing millions of minorities, women, hippies, anti-war protesters reshaped the socio-economic world in the 60s and 70s.
Globalisation planners hit back. Like Wall Street and the DDA, they are back on top today yet that clout is rapidly becoming passe itself. When an economic force takes command and control it also inherits the responsibility for actually making the entire system work. The new Liberal governance didm't work perfectly. Conservatism followed. That failed. Corruption and cronyism from both sides of the isle moved in to ice the burning cake.
Overpopulation and resource distribution in a bounded world has become the core economic driver. The globalization borders in the U. Even in Detroit. Even in Ann Arbor.. Nobody wants a war. Nobody wants a revolution. Everybody wants the status quo on Easy Street. The resource driven economy has to be dealt with soon, however. China is in trouble. Capital is about to collapse in the U. I really hope those who call themselves academic brains have the next better idea.
LXIX, did I read you correctly? You say that the riots were the result of white flight and the auto industry? Doesn't that analysis fail to take social factors such as those operating in the other cities where rioting occurred into account? Over the past dozen years, the City of Ann Arbor has gone from being in the black to over a half billion dollar debt from a big shell game played with buckets.
Sound like Tree Town? Who's running this tree train anyway? Crains June UM regent. They recently voted for big Illegal alien tuition break , the DDA unanimously voted to approve a memorandum of understanding between itself, Ilitch's Olympia Development and Wayne County.
Near Billionaire Governor Snyder got his wish for a brand new bridge linking Detroit and Windsor instead of the other billionaire's wish to keep the old one. Orr to fix the Motor City. Only to become the largest Municipal bankruptcy in U.
I remember hearing about revitalizing Detroit over 40 years ago. I think it's still about 25 years away. That big fist would look mighty fine in front of our city hall.
Will it also be for sale? The city of Ann Arbor also does not consider its unfunded pension and healthcare liabilities to be debt. The underground garage was an example of fiscal insanity. Water Street also put Ypsi in a hole the same way. Detroit's problems from spending too much could be Ann Arbor's problems if we let the DDA and mayor have their way. Now we have the debt of an underground garage with the huge extra costs of building a garage strong enough to hold a hotel or convention center.
Each small millage adds up to the point where many long time residents now pay more in property taxes than they pay or paid in mortgage costs. Each unnecessary project takes money from Ann Arborites who would rather spend that money in local businesses. Ann Arbor can't afford a new train station and subsidies toward commuter trains that would carry few paying customers when vans can transport people cheaper and with greater flexibility regarding stops and routes.
We need to look at how we can avoid troubles in future years. Among other things, we need to recognize that as baby boomer city employees, including firefighters and police officers, retire, we need to pay what we've promised them. Detroit was a boom town. Much like the Gold towns in the west or even Michigan's Logging or Mining towns. When the fair trade laws went into effect it was like the mine closing down.
All the jobs went away and anyone who could moved too. All that were left were the poor or untrained who couldn't move. No leader can fix that. Maybe if we we had some froward thinking folks like in Pittsburgh we could have avoided this. Detroit still had the highest income of a major city in the early sixties. It went to hell after the riot which was bigger than anything seen elsewhere by a mile and two decades later with Coleman Young it was a disaster.
He raised taxes endlessly, replaced competent people with cronies, got rid of that STRESS police program because it was stressing out all the criminally minded people. Even told the business people to leave if they didn't like how he was doing things at a meeting of the DEC I'm not talking about the 8 mile rant. You can see other towns that are economically depressed but don't have the same crime problems. The crime is what kills it.
Looking to Pittsburgh could prove to be wise. The influence that big business had on there turn-around took place in the city center. Pittsburghs neighborhoods were not in decline to the degree they are in Detroit.
Detroit is presently undergoing a tremendous city center resurgence thanks to Roger Penske, Mike Illich, Dan Gilbert, and several others. This bankruptcy will have little or no influence on this movement. Hopefully it will spread to the neighborhoods going forward. What fair trade laws are you referring to? Detroit's demise started in the early 50's. More than 2 decades ago, my wife and I tried to look at moving into Detroit, we both had friends there and given job locations it would have been a reasonable place to live.
We went to the city to ask about places to live, homesteading, etc. I will never forget the first comment I got from an official. I hope, that my experience was different from anyone else, but I suspect it was not. Please look into the black power movement with Jesse Jackson at its head in the 's before he decided on rainbows.
They held meetings in places like Detroit, and Gary, Indiana. They were so sure and confident of themselves and their ability to run these cities. What they basically did was affirmative action on steroids; they looked at city government as the source of their prosperity and sought to get rid of anyone not black in the top jobs unless they were absolutely indispensable. They gave themselves raises and perks that the previous white officials never had. I recall seeing Mayor Young driven around in some odd looking limousine with a white driver in a chauffeur's uniform.
Then the city council decided they were like members of Congress and needed a budget in the millions so they could be driven around too. I recall trying to pay a parking ticket in Detroit once. The girl did not want me to pay it. The mentality is just different even when it is not racist.
Detroit has hated whites for a long time. Most racist place I've ever been to. Some clients of mine Conan Smith certainly helped hitch our transit wagon to detroit. It was a bad move when he did it, and it is an even worse move now. Thanks Conan! Detroit's loss is our gain. I have lived in southeast Michigan all my life and I have seen the steady decline of Detroit. I think it started with Coleman Young. He made it known he didn't want outsiders in Detroit.
What he didn't understand was he alienated subarbanites who would have been ok with going into Detroit after the riots. Dennis Archer never got a chance, and Kwame the Crook sealed the deal. I used to feel compassion for Detroit but the continued corruption, crime and greed has left me cold.
I go into Detroit for events, but no more do I feel compelled to spend anymore time in Detroit than necessary. They need to contract the city, move people to concentrate the population into a smaller area, and let suburbs have the additional acerage or turn it over to farmers.
It is my understanding that the Detroit Public Schools leaders have been corrupt as well and now look at the poor kids. My bad. A typo. Actually, neither. It lost another K between 70 and 80, withe the largest portion of that coming erly as people fled due to the riots.
If it is between and , then Mr. Young would have been in office for several of those years. I suggest you read some history. The city's decline began long before Young became mayor. So please tell us how Coleman Young caused the population to decline by , with resultant loss of tax revue, jobs, etc before he took office. We are facing similar funding problems here but not as severely as Detroit. They just kicked the can down the road too many times and didn't try to deal with he problems until it was too late.
The County is trying to control it's potential unfunded pension debt by renegotiating a defined contribution retirement plan instead of defined benefits and a bond issue. I recall that when I worked there almost 20 years ago, it was adequately funded but their consultant actuaries[who help determine the county contributions] did not adequately project the damage that the recession caused.
I expect that we''ll see other local governments will do something similar to control these types of costs. That's the whole problem - they have shown the inability to control the costs before they become staggering debt. I am not sure why people are surprised or see this bankruptcy as something momentous. It has not kept Ann Arbor from getting into high rises and downtown commercial interests.
In fact, I think business that may have been once Detroit's is now Ann Arbor's. I totally agree. Ypsi has also been growing and improving in some areas. This really shouldn't be a surprise. Detroit has been on the decline for decades despite the valiant efforts of the few. I hope the city can begin to turn around to the positive. The Detroit City Council has more often than not been part of the problem not the solution.
What is needed is cool heads and real solutions. And Conan says it will not impact either current spending or current borrowing in Washtenaw.
He's happy to just add onto future debt as bond costs rise. I've read a ton of coverage about Detroit since yesterday, but I really enjoyed this perspective. It's also why the city was destined to go bust.
Rick Fitzgerald, a University of Michigan spokesperson said in an email that the University of Michigan is not a creditor to the city and will not be directly impacted by the bankruptcy. He added that as a longtime partner in the revitalization and economic development efforts in the city of Detroit, the university is committed to its full-time presence in the city and the Semester in Detroit program.
Shocking that Willow Run and Ypsi property values will go down. They've been sliding and will continue to do so. I live on the other side of 23 and feel pretty good about my property value.
GratefulReb is certainly not in touch with the current state of Ypsi. Well written article. I have two observations. The general obligation debt issue will be decided by the federal courts. Bondholders will not quietly let their liens be extinguished. Whatever the result, it will apply to ALL municipal bankruptcies in the future, so if borrowing costs go up it won't just be in Michigan, it will be everywhere.
Detroit's reputation is so bad, that bankruptcy is unlikely to hurt what's left of tourism in the city. If there is follow through with improving services and clamping down on corruption, within a few years the city could be a big plus for the state. Ben Freed- It will drag on in the courts for a while. The general obligation piece will change municipal financing dramatically so it will be hard fought. Plus we're already seeing legal grandstanding by an Ingham county judge who has no standing in federal court, but wants the limelight as a catapult to higher office.
Expect much more of that before we're done. This will be messy. Ben Freed- How can you not realize that this will absolutely be a precedent-setting case for municipal bankruptcies? I'm not sure it's even up for debate.
When I read recently about the good tourist season for Michigan, I forgot about Detroit not being a part of it. We have lost a US congressional seat because of the population loss due to the job loss. Chelsea, If you think this has the potential to be a truly precedent-setting case for municipal bankruptcies, do you think that some of the arguments i. How long do you think it will take to resolve this bankruptcy?
I'm having trouble finding it, but do you really think perception was already that bad that this will not have an impact? Lets remember to put the blame where it belongs. I don't view this as a left-right thing as the media tends to make everything else. This is about financial promises that were made and can no longer be kept. I have high hopes for my hometown of Detroit. I hope this is the start of fixing all that is wrong with Detroit.
Democrats as a party believe that responsibility should not be placed upon the individual but on society as a whole. So it just makes sense that they would never take responsibility for the result of half a century of solid democrat rule in Detroit and Wayne County.
It's always someone else's fault Arbor Army: that loss of population occurred under Democrats and their policies.
The loss of Detroit's industry is overstated. It lost about half of it the GM plant is much bigger. Detroit was a city built on small business before the auto industry came around. People forget that. White flight started before the riots. When the workers came home from the war, many of them took GI Housing loans and moved to the suburbs. Then came the interstate highways, which moved them further away from the city and along with that, economic activity. The riots in only expedited something that was already underway.
The KEY development in all of this is white flight that started after the riots and the failure of the management of the Big 4 at the time as to how to run a business for higher gas prices.
No person ever said Japan made a better truck, bus, van,. They said they built better mid to small size cars. That has nothing to do with unions they build Fs as well it has everything to do with building smaller cars cheaply with bad engineering. There are also some issues regarding currency manipulation, but the bottom line is, as people moved to the suburbs, the tax base eroded. She obtained her law degree from the University of Michigan Law School.
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