Im watching a documentary on PBS that unfortunately perpetuates two mistaken notions: One, that the decline of Detroit was due entirely to externalities, and that he recovery of Detroit will require all sorts of creative ideas and targeted spending, programs, and so forth. But Detroits decline was foreseeable and preventable. It happened because a succession of state and local government authorities decided to subsidize the auto industry at the cost of shortchanging everyone else. The auto coma pies got tax breaks, and everyone else got tax hikes. Result? All the other businesses left, and when the auto industry collapsed, that was that. There are plenty of people and there is plenty of capital ready to buy in to Detroit. Whats needed is not new programs, murals, Heidelberg projects, or community programs. What Detroit needs is to reform those factors that drove people out in the first place. First, lower the taxes on both homeowners and businesses. Detroiters pay the highest taxes of any city in America. Quit trying to dictate how and where new growth should occur- no more high tech zones or entrepreneurial zones. People know better than government where they should locate themselves. The city should concentrate on providing basic services efficiently. That means solid police, fire, water, and sanitation, and contract out as much as possible.
Posted on: Tue, 22 Apr 2014 01:14:02 +0000
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