The City of Detroit can’t maintain her Parks but the Private Sector Can

Posted by PITHOCRATES - February 10th, 2013

Week in Review

Detroit, the Motor City, the automotive capital of the world (at one time), is an example of what government should NOT do.  The city got rich off of the automotive industry.  They imposed a city income tax.  Greatly expanded the size of city government.  With the public sector unions negotiating generous pay and benefit packages.  Just as the UAW was giving their members generous pay and benefit packages.  And why not?  Detroit WAS the Motor City.  And nothing was going to stop that cash cow.  What could possibly go wrong?

As it turned out, a lot.  Competition came in and offered quality cars for less.  And the great decline of the Big Three began.  As did all that tax revenue to fund that expanded government with those generous pay and benefit packages.  Fast forward to today and Detroit is a shell of what it once was.  Half of its population is gone.  Drowning under the cost of that expansive city government.  And forced to close city parks because there’s just no money left after paying for those generous pay and benefit packages (see Detroit to Lose 51 Parks – Impact on Residents by Marilisa Sachteleben by Marilisa Sachteleben posted 2/4/2013 on Yahoo! News).

Detroit’s City Council nixed a plan to lease Belle Isle to the State of Michigan last week. In response, Mayor Dave Bing announced plans to close 51 area parks, cut maintenance at others, and greatly reduce recreation center budgets overall, says the Detroit Free Press…

The Detroit Free Press reports that revenue lost from the collapsed Belle Isle deal means that groundskeeping on Belle Isle will be limited. The Belle Isle Conservancy was able to get the island’s historical aquarium reopened in 2012 after being shut down for several years. With less money, it may be difficult for Belle Isle attractions to remain open…

Detroit resident Syed Mohiuddin of the Michigan Muslim Community Council is very concerned about park closures. He said, “My wife and I live downtown, and we are definitely affected by the announcement. Park closures are not an option. To the contrary, we need to invest more in parks to make our neighborhoods safer and community healthy. How do we do that given the state of our budget? Partnerships. Corporations, suburban religious groups, and others can and should partner with city government and community organizations and find solutions for each and every park. They are just too important to sacrifice, not in the name of politics, not in the name of budgets.”

He’s right, you know.

One local park group came up with such a solution: the Clark Park Coalition. Clark Park, at 1130 Clark St. in Detroit’s Southwest-Mexicantown neighborhood, was forced to close over 20 years ago due to financial troubles in Detroit. Concerned neighbors, activists, organizations, and youth programs put their heads together to preserve Clark Park. They formed a nonprofit partnership with the city recreation department.

Currently, Clark Park’s collective provides year-round programs to over 1,200 youths in the area. It maintains a regulation-size outdoor ice hockey rink (the only one in Metro Detroit). Free daily summer lunches are served to over 100 youth. Activities at Clark Park include baseball, arts and crafts, field trips, soccer, golf, fitness training, softball, tennis, roller hockey, gardening, and ice skating. Kids can come to the park center for homework help, mentoring, and computer assistance. There are community service activities for school projects and even opportunities for kids to find jobs.

Imagine that.  The City of Detroit is going bankrupt.  They can’t afford basic maintenance at their parks.  And look at all the private sector did at Clark Park.  This just goes to show you what the private sector can do.  And what the public sector can’t do.  The lesson?  Cities should privatize as much as they can.  And embrace partnerships.  Corporations.  Suburban religious groups.  And community organizations.

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Singapore going ‘Solyndra’ to find the next Mark Zuckerberg?

Posted by PITHOCRATES - January 26th, 2013

Week in Review

While public education teaches kids the fear of global warming, the evils of capitalism and the goodness of government Singapore is having their schools teach business and entrepreneurial skills.  The U.S. is suffering through the worst economic recovery since the Great Depression.  While Singapore is doing quite well.  And should continue to do well because they don’t teach kids the evils of capitalism in school (see Singapore Hunts for New Zuckerberg With Stanford-Style Dorm by Sharon Chen posted 1/25/13 on Bloomberg).

Singapore became Southeast Asia’s only advanced economy by moving up the technology ladder, turning a trading port into the region’s biggest banking center and a manufacturer of electronics, petrochemicals and pharmaceuticals. Now, the nation is looking to gain a bigger share of a software industry that raised $28 billion in initial share sales last year.

N-House, which opened in August 2011, is one strand of a five-year plan by the government that includes offering new technology companies grants of as much as S$500,000, supporting venture capital funds, and encouraging high schools to teach business and entrepreneurial skills, in an effort to groom the next Mark Zuckerberg, co-founder of Facebook Inc…

The island of 5 million people, ranked the easiest place to do business for seven straight years by the World Bank, is the second-easiest place in Asia after Hong Kong for entrepreneurs to gain access to capital, according to a study by the Milken Institute published in 2010.

Singapore is a success story because it’s an easy place to do business in.  Businesses like that.  So businesses do business in Singapore.  This is a lesson the United States could learn.  Making it easy for businesses to do business.  Detroit, the Motor City, birthplace of the automated assembly line, is a horrible place to do business.  Being the home of the Big Three (General Motors, Ford and Chrysler) you’d think they’d have an edge on manufacturing automobiles.  Yet not one new auto manufacturer has chosen Detroit.  Honda, Toyota, Nissan, Mercedes, BMW, Volkswagen, Hyundai, and Kia all built assembly plants in the United States.  But not one of them picked Detroit.  Because Detroit, the Motor City, is not an easy city to make automobiles in.

So Singapore knows a thing or two about how to do business.  Which, for the most part, is just leaving business the hell alone.  For a business is a lot like a dog having puppies.  They can do it without any help.  In fact, trying to help can actually do more harm to a business than good.  For when the government steps in and provides money the private sector won’t supply you can pretty much guarantee that the government is backing a bad investment.  Think Solyndra in the U.S.  And all those jobs of the future we were supposed to get with all those investments into green energy.  President Obama begins his second term with the worst recovery since the Great Depression.  Despite all that spending to invest into the jobs of the future.  Here’s a lesson Singapore can learn from the U.S.  Creating a business-friendly environment is good.  But trying to influence things in that environment, well, that rarely ends well.  Again, think Solyndra.

“Singapore has done the best job of any government to spawn an entrepreneurial ecosystem,” said Ressi, who travels to the city about three times a year to meet with government officials. “However, I think they’ve gone a little bit too far in making it easy. If they can’t actually raise money from people privately, they probably aren’t worthy of being in existence.”

There are venture capitalists out there with money burning holes in their pocket.  They want to invest it.  They want to groom the next Mark Zuckerberg.  And if these greedy bastards are NOT willing to bet their money on someone there’s a reason for it.  These people are in the business of finding entrepreneurs to back and groom.  And if they don’t invest in an entrepreneur they must have determined that the entrepreneur just doesn’t have what it takes.  So they keep looking for one who does have what it takes.  And if that person is out there the free market will find that entrepreneur.  While governments pour millions into other Solyndras.

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China to Eclipse the American Empire?

Posted by PITHOCRATES - April 25th, 2011

Detroit is a Microcosm of American Decline

If you want to see a potential future of the United States, take a look at one of our big cities.  Say Detroit, for example (see Motor City finds labor clout weakened amid spending cuts, new legislation by Michael A. Fletcher posted 4/25/2011 on The Washington Post).

Bold action by Republican governors to rein in government spending and labor power by curtailing collective bargaining rights have been met with raucous, if ultimately unsuccessful, protests from union leaders and their allies in places including Wisconsin and Ohio.

But [Mayor] Bing’s move to extract new concessions from Detroit’s 12,000 municipal workers has been met with no such outpouring…

First of all, let’s get are arms around the size of 12,000 municipal workers.  On average let’s say each worker grosses $35,000 annually.  That is just under half a billion dollars in wages.  Now add in their benefits and it approaches a billion a year.  Just for wage and benefits for city workers.  It doesn’t count the cost of light bulbs, electricity, toilet paper, road salt, buildings, vehicles, etc.  That’s just the cost of people.  And that’s a lot of money.  For an impoverished city with a declining population.  And a declining tax base.

By the way, Mayor Bing is a Democrat.  He is not alone.  The sinking weight of the big city budget deficits transcends political party.

The absence of any large protest highlights the conundrum facing labor and its progressive allies as more states, cities and towns run by their putative Democratic allies are confronted with staggering debt and budget problems…

In New York and California, Democratic governors have not attacked collective bargaining, but they have also demanded major concessions from workers to help close yawning budget deficits.

In Wisconsin and Ohio, new Republican governors have significantly curtailed or eliminated collective bargaining rights for public employees, moves they said were made to give themselves as well as local leaders a freer hand to make badly needed cuts.

Michigan’s new Gov. Rick Snyder (R) signed legislation last month empowering his appointed emergency financial managers to void municipal union contracts in distressed municipalities across the state.

Of course, we got here for a couple of reasons.  People are living longer.  Living retirees consume pensions and health care.  And these benefits are generous.  Created at a time when they could be generous.  Following World War II, the United States rebuilt war-torn countries.  Everyone worked.  And bought a car.  Some bought a couple.  From Detroit.  The Motor City could charge what they wanted.  For where else were people going to buy a car?  UAW line workers lived like kings.  Worked hard.  Retired early.  And doctors kept them alive with ever improving health care.  Some lived longer into retirement than they actually worked.  And all of these costs began to build up in the pipeline.  Waiting to burst out at the other end on some future generation.

And that’s what happened.  War-torn countries eventually rebuilt their manufacturing.  They began to provide for themselves.  Some even provided for others.  They started building quality products at affordable prices.  Long story short, Toyota surpassed General Motors (GM) as the number one car manufacturer.  And GM, saddled with those legacy costs from what proved to be a too generous time, went belly up, bailed out by the government.  And as went the U.S. automotive industry, so did the Motor City.

Decades ago, when Detroit earned the proud moniker Motor City, it was home to a thriving and decidedly blue-collar middle class built largely by the clout of organized labor. Detroit is now renowned as a national symbol of urban dysfunction, and as Bing tries desperately to change that reputation, he often finds himself at odds with the city’s labor unions…

Even as the city is shrinking, Bing calls the current state of city services unacceptable. And he says they are not going to improve unless he can reduce the city’s personnel costs, which are overwhelming the budget. This year, the city paid $200 million in pension benefits, which Bing said was $25 million more than the city paid for fire department and ambulance services last year.

“The old days when getting a good city job meant that you put in your 20 years with the expectation that city government could take care of you for the next 40 is no longer a realistic or viable option,” Bing said.

Generous automotive jobs could pay a lot of taxes.  And did.  The city government grew right alongside the U.S. automotive industry.   But with those auto jobs went the city’s tax base.  And now the municipal workers are going through the same thing the auto workers did.  Only worse.  Because their benefits were even more generous.

Now he wants workers to take on an additional 20 percent of their health insurance premiums. He also wants them to take smaller pensions, and to eliminate defined-benefit pensions for all new employees.

Bing said he has no choice. “If we do nothing, by 2015, fringe benefits are on pace to consume half of our entire general fund revenue,” Bing said. “That is not sustainable. We can’t afford benefit packages so rich.”

Supporters of the public sector will argue they aren’t getting rich.  They’ll argue that they could earn more in the private sector.  True, some could.  But most couldn’t.  Because if they could they would go to the private sector to make more money.  No one chooses to stay somewhere to earn less.  There’s a reason they stay.  And it’s not the wage or salary.  It’s the benefits.

That’s how it was for [a retiree], who went to work for the city as a typist in the health department in 1968. She retired as a 911 operator in 1998 at age 48, and the city is obligated to pay her $24,000 a year for life.

The current Social Security retirement age is 67 for anyone born after 1959.  And there’s talk about raising it still because people aren’t dying soon enough into retirement.  Improvements in health care are keeping people alive longer to consume ever more retirement benefits.  It’s busting the federal treasury.  As well as the treasuries in the big cities.  You just cannot have people retire at 48 years of age these days.  Not if you expect to remain solvent.

This kind of generosity is just not sustainable.  Retirees are consuming more than they ever contributed to their retirement and health care.  And the working young are paying more and more to support them while cutting into their own retirement savings.  Something’s gotta give.  To reverse the American decline.

China the new Japan of the Eighties?

What, you may ask?  What may give?  Perhaps the United States (see IMF bombshell: Age of America nears end by Brett Arends posted 4/25/2011 on MarketWatch).

According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now…

We have lived in a world dominated by the U.S. for so long that there is no longer anyone alive who remembers anything else. America overtook Great Britain as the world’s leading economic power in the 1890s and never looked back.

And both those countries live under very similar rules of constitutional government, respect for civil liberties and the rights of property. China has none of those. The Age of China will feel very different.

China is still communist.  Like the Soviet Union was.  So the Age of China may feel more like the Cold War.  Only without us being a superpower.  So how will that feel in America?  Possibly like it felt to live in Eastern Europe behind the Iron Curtain.  Economically dependent on your overlord.  And wholly at their mercy.

“There are two systems in collision,” said Ralph Gomory, research professor at NYU’s Stern business school. “They have a state-guided form of capitalism, and we have a much freer former of capitalism.” What we have seen, he said, is “a massive shift in capability from the U.S. to China. What we have done is traded jobs for profit. The jobs have moved to China. The capability erodes in the U.S. and grows in China. That’s very destructive. That is a big reason why the U.S. is becoming more and more polarized between a small, very rich class and an eroding middle class. The people who get the profits are very different from the people who lost the wages.”

This sounds like what they were saying during the Nineties about Japan Inc.  Just before they entered a devastating deflationary spiral.  Before that, though, some were saying here that we needed to do what the Japanese were doing.  Business and government were working together.  It wasn’t that laissez-faire capitalism nonsense we were clinging to in the United States.  Japan Inc. was a juggernaut.  They got so rich that they were buying up landmark U.S. properties.  A National Lampoon cover showed a Japanese CEO sitting at his desk with a sign saying the United States was a wholly own subsidiary of his company.  It was the end of America as we knew it.

Well, it wasn’t.  The government built a huge asset bubble.  And the thing about bubbles is that they eventually burst.  And when it did, the Japanese economy tanked.  For a decade.  Or two.  The Japanese called the Nineties the Lost Decade.  The lesson the Japanese learned?  A “state-guided form of capitalism” doesn’t work.  It may in the short term.  But not in the long term. 

China may be surging now like the Japanese were in the Eighties.  Will they be able to avoid Japan’s fate, though?

The Difference between China and the United States is Labor Costs

The MarketWatch article misses one salient fact.  First of all, let’s consider the Soviet Union.  If the state was good at ‘guiding’ an economy, why did the Soviet Union fail?  I mean, they had a prosperous manufacturing industry.  Lots of people were building things.  The problem was, they were building things that no one wanted to buy.  Whereas the things they did want to buy (soap, toilet paper, etc.) were always in short supply.  You waited in line to buy those things.  Look at Cuba.  And North Korea.  These are all state-guided.  And they all suffer from abject poverty.  And, at times, famine.  Clearly, the ‘state-guided’ is not the reason why China is doing so well.  It’s that other thing.  The capitalism.  Which the Soviet Union, Cuba and North Korea did not/do not have.

Now we have capitalism.  As did Great Britain.  And at one time, we each had the world’s largest economy.  But we surpassed Great Britain.  And China is about to surpass us.  So is there anything we can draw from this.  Something the British and the Americans have that the Chinese don’t?  I’ll give you a hint.  Think about Detroit.

How many times do we hear about unions striking Chinese industry?  Not many.  For one, there is only one Chinese trade union.  All-China Federation of Trade Unions (ACFTU).  It’s not exactly what you would think of when you think of a union in the UK or the USA.  Some would say that the ACFTU represents the government’s interests more than the workers.  And that’s the difference.  China doesn’t have the high labor costs we have (or the British).  Or the generous benefits.  And they have no legacy costs.  For their industrial workers.  (Or their municipalities.)  And this is why manufacturing jobs left the U.S. and went to China.  They could make things cheaper.  And as we pay more of our income in taxes to support an ever growing public sector, the less we have to spend on material goods. 

It’s just simple arithmetic.  It’s not a matter of greed on the consumer.  Just like union workers want higher pay and benefits, so do they.  So they can buy more stuff.  And if they can’t have the higher pay and benefits like they have in the unions, they at least want low taxes.  Or low prices.  But their paychecks aren’t as generous.  And their taxes are high.  Which leaves them with less disposable income than their union brothers and sisters.  Making them the ideal market for those low-priced Chinese imports.  And as long as the ACFTU holds Chinese wages down, they’ll keep buying those imports.

But can they?  Will the Chinese workers rise up one day?  They have nothing to lose but their chains.  As Karl Marx would say.  Will they overthrow the ‘capitalism’ in ‘state-guided capitalism’?   Making it a more pure form of communism?  More like in the former Soviet Union?  It may be the only thing that can stop this Chinese juggernaut.  A workers revolt.  An authentic communist revolution.  In already communist China.

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LESSONS LEARNED #52: “The political right is usually right.” -Old Pithy

Posted by PITHOCRATES - February 10th, 2011

The Right Knows Business.  The Left Doesn’t.

Creating jobs is important.  Without jobs no one has any money.  No one can buy anything.  And the government can’t tax what we don’t have.  So jobs are important.  To those on the right.  As well as on the left.

Now critics of the Right claim that those on the right only care about profits.  Not people.  Whereas those on the left claim they care about people.  Not profits.  In some sense this is true.  Those on the right tend to understand business.  They know a business can only survive by making a profit.  And only a business that stays in business can create jobs.  The Right understands this.

Those on the left, on the other hand, don’t really understand business.  They don’t understand incentive.  Only duty.  And sacrifice.  For others, that is.  Not them.  They don’t think a business should make a profit.  That they should give any excess revenue to their workers.  Or to the government.  In other words, business owners, they feel, should serve others.  They should work and sacrifice so others may live better.  Workers shouldn’t have to work hard or sacrifice.  But owners should.

Protecting an Industry only Delays the Inevitable

Some great entrepreneurs created some great businesses.  Made life better for all of us.  Provided good, inexpensive clothing.  Made high quality steel cheaper and more plentiful than any other nation.  Built cars than the average working man could afford.  These titans of industry built this nation.  Because of them we surpassed all other nations and became the most powerful economic engine of the world.  Life was good.  There were lots of jobs.  Lots of stuff.  And lots of homes filled with the most modern stuff available.  America was the place to be.  People waited in line to immigrate to our shores.

Unfortunately, big piles of money attract a lot of people.  And not just workers begging to get a job in these new industries.  No.  It was people looking out for the workers.  Labor unions organized workers.  To get a ‘decent’ wage.  And better working conditions.  Cost of labor went up.  Which made the price of what they sold go up.  Imports started to look more attractive.  So government stepped in and slapped tariffs on those.  To force Americans to pay the higher price for our domestic goods.  Then they legislated ways to further ‘protect’ these American industries.  And how did that all work?

Well, take a look at the American textile, steel and automobile industries.  The Left overreached.  And killed these industries.  They’re no longer the dominate industries they once were.  We have no textile industry to speak of anymore.  The once big steel towns look more like ghost towns.  And the government had to bail out 2 of the Big Three auto makers.  Those generous union contracts added thousands to the price of a car.  Allowing Toyota to take over the top auto manufacturer spot from GM.  By providing the same or better quality for less.

Bad Jobs Today may have been Good Jobs Yesterday

That’s what happens when you protect an industry.  That industry has no incentive to innovate.  To be better.  To be more efficient.  To be more productive.  To give the consumer what they want.  Because when the consumer doesn’t have a choice, where else is the consumer going to go?  So protected industries rest on their laurels.  While others innovate.  And became better.

Combine that with union wages and benefits that keep getting higher and higher and what do you get?  Inferior products that cost more than the higher quality imports.  The Big Three sold crap during the Seventies.  Opened the door to the Japanese.  And a few decades later they took over the top spot from GM.  No matter how much we tried to protect our domestic automotive industry.

Say what you want about life before labor unions but the fact remains that we had more jobs.  And as dangerous or as dirty as those jobs were, people still came to this country by the thousands to get those jobs.  People were falling off the Golden Gate Bridge during construction.  Did that dissuade people from wanting to work on that bridge?  No.  There was a shanty town with people waiting for others to fall and die so they could get their job.  Sure, by today’s standards, these were some pretty nasty jobs.  But not then.  In fact, they were pretty damn good jobs.  Compared to what else was out there.  How can we say this?  Because they chose those jobs over the other jobs out there.

The Greed of the Left Killed the Golden Goose. 

Henry Ford had a bold idea.  He was going to mass produce a car so he could sell it at a price that the working man could afford.  To get the best people in his plants he offered $5 per day.  Twice what other manufacturing jobs were offering.  No union made him do this.  The market did.  He got the best mechanics and the lowest turnover rates.  Other businesses had to follow suit to retain their best people.  And working conditions improved.  Because of the greed of these business owners.

Contrast that to today where union contracts force high wage and benefit packages onto a manufacturer.  And contractual obligations that make it near impossible to get rid of excess workers during times of weak demand.  Using the Ford model, Detroit became the Motor City.  An economic dynamo.  Under the union model, GM and Chrysler went bankrupt.  And Detroit is considering bulldozing sparsely populated neighborhoods into farmland.

When profit wasn’t a dirty word businesses prospered and provided jobs.  When the left came in to protect the little guy from those greedy business owners they made it difficult to make a profit.  Business struggled to compete with their competition.  And when they couldn’t, they shuttered operations.  Jobs disappeared.  The greed of the left to protect against the greed of the right killed the golden goose.  And all those good manufacturing jobs grew legs and left the country.  Where they’re now providing a better life for other workers.  Like they once did here.

Greed is a Hell of an Incentive

The Right understands business.  The Left doesn’t.  But it has never stopped them from trying to tell businesses how they should conduct business.  And the more they get involved, the more business suffers.  The more jobs we lose.  And the less competitive we get as a nation.

FDR tried for a decade to end the Great Depression.  Nothing he did worked.  When World War II came along, something had to change.  There was a crisis.  We needed to provide war material to our allies.  So the FDR administration told American industry to do what they do best.  They let them make profits.  Restored incentive.  And the government said they would interfere no more.  Well, that unleashed the floodgates.  Workers were hired and factories worked round the clock.  Businesses made profits that let them innovate.  Improve productivity.  Trucks, planes, boats, weapons, etc., poured out of American factories.  The Allies armies were mechanized.  Jeeps and trucks moved our armies.  While the Nazis used horses to pull their artillery and supplies.  The Arsenal of Democracy, the Detroit dynamo of industry, won World War II.  And men like Henry Ford made it all possible.  Because they were greedy.

The post-war era was one of the most prosperous times in our nation.  There were jobs for everyone.  And a better life was there for the taking.  Times would stay good until the Left ushered in their Big Government programs beginning in the Sixties.  To protect the little guy.  And it’s been downhill ever since (with a brief respite during the Reagan Eighties).

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LESSONS LEARNED #45: “The bluest of cities in the bluest of states have the most activist governments, the deepest recessions and the most abject poverty.” -Old Pithy

Posted by PITHOCRATES - December 23rd, 2010

Detroit – The Motor of the World

Detroit.  Do I need say more? 

If you want to see the ultimate destination of liberalism, go to Detroit.  The Motor City.  The birthplace of the assembly line.  Mass production.  The veritable axle of the Industrial Revolution redux.  Detroit put the nation in motion.  In cars.  And in diesel-electric trains.  If it was big and powerful and moved the world, it came from Detroit.  The Arsenal of Democracy.  Detroit could mass produce trucks and tanks and airplanes to win world wars.  And did.  There was nothing Detroit couldn’t do.

Henry Ford.  Thomas Edison.   Albert Kahn.  Some of the greatest names in science and industry called Detroit home.  That place you can point to on your hand.  With pride.  The city grew and became one of the greatest and grandest cities in the nation.

And look at it now. 

Detroit and Government Grow Big

The population of Detroit grew up to and through the 1950s.  That changed in the 1960s.  When Big Government arrived.

Mayor Jerome P. Cavanaugh started it.  He implemented the city income tax in 1964.  The spirit of government spending was in the air.  The Great Society would follow at the federal level.  Government spending upon government spending.  Translation?  High taxes in the city of Detroit.

Then there was all the social engineering.  Lots of rules and regulations.  Some of it good.  But all of it complex.  And costly to business.  Compliance costs and taxes.  Not things that attract businesses.  Not a big deal when the Big Three rule the automobile world.  But that would change.  In fact, that would change because of the compliance costs and taxes.  The Japanese entered the market.  And they were selling better cars for less.  Add all of this together and you get the 1970s.

The Fall of Detroit

Detroit grew to be business unfriendly.  So business left.  And then the people left, following the jobs out of Detroit.  Then some of the social engineering made others leave the city.  School bussing, for one.  Families choose their houses based on the school district the house is in.  Of course, poor families can’t afford to live in those nice neighborhoods with the nice schools.  And Big Government thinks this is just not fair.    So they bussed the poor kids to the nice schools.  And bussed the kids from the nice schools to the not so nice schools.  Thus encouraging the people from the nice neighborhoods to leave Detroit.

They call it white-flight.  A lot of jobs and affluent people left Detroit.  Leaving behind the less affluent in the not so nice neighborhoods with no jobs.  Not good for any city.  Government services grew to help care for the poor.  The Great Society offered Aid to Dependent Children.  Which, according to noted economist Thomas Sowell, destroyed the black family.  Fathers ran away from their responsibilities.  And the state stepped in to raise their children.

Add all this together and you get a lot of people with no money and a lot of idle time on their hands living in rundown neighborhoods wanting for the basic necessities of life.  And that’s never good.  Detroit became infamous.  Crime and drug problems.  Devil’s night arson.  Street gangs.  Murder capital of America.  Crime and drug infested public housing.  Decrepit schools.  Truancy.  Low graduation rates.  And to solve these problems caused by Big Government, one man turned to Big Government.

Culture of Corruption

Coleman A. Young was mayor forever.  From 1974 to 1993.  And he was a Big Government guy.  He took the city from bad to worse.  And he fixed the racism problem.  By implementing racist policies.  After the white-flight, the city was predominately black.  And so would their police, fire department, public sector employees, etc.  They based hiring on color.  Not merit.  This accelerated the white-flight.  And set up a culture of corruption.  Which usually happens when you hire people based on who they know or who they are rather than on merit.

Young was hostile to the suburbs surrounding the city.  He called them hostile suburbs.  Why?  Well, that’s the problem you have with socialism (Young was an admitted socialist).  It just doesn’t work in an open society.  If the tax and compliance costs are too great in Detroit, people can move out of Detroit.  And they did.  Even the city cops didn’t want to live in the city.  They moved out if they could (by concealing their actual residency).  Or they lived clustered together in the city.  The real estate community called one such cluster Copper Alley.  It was near one of those hostile suburbs.  And it was one of the good areas in Detroit to live in.  Young hated this.  And the suburbs that offered safe sanctuary from oppressive, socialist policies.

Detroit was one of the most corrupt cities during Mayor Young’s tenure.  It was crony capitalism at its worst.  Everyone was corrupt.  Even the authorities were forever investigating the mayor.  (A later mayor was doing a lot of the same.  And he went to jail.)  It was during the Young administration that a couple of humorous slogans started to appear on T-shirts.  “Welcome to Detroit.  Now get the hell out.”  And “Detroit.  Where the weak are killed and eaten.”  High praise indeed for the Murder Capital of America.

Detroit’s Future – Returning to the Plow

So what happens after a city suffers at the hands of Big Government for a few decades?  Well, the population declines.  Because no one wants to live in the city.  About a million people have left Detroit since its peak in the 1950s.  And if that ain’t a repudiation of Big Government, I don’t know what is.

So what is the current mayor doing?  Well, the city is broke.  City services are in shambles.  So they’re going to move people out of sparsely populated neighborhoods.  Pack them closer together.   And abandon large tracts of land.  Just let the land return to nature.  Or plow it into farmland.  If anyone wants to buy it.

Ironic, really.  The city that made the world move forward is moving backward.  A sad ending indeed for the Motor City.

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FUNDAMENTAL TRUTH #25: “War is costly. Peace, too.” -Old Pithy

Posted by PITHOCRATES - August 3rd, 2010

ONE OF THE lasting consequences of war is the feminization of men.  War makes widows.  And fatherless sons.  Their mothers raise them the best that they can.  But women tend to be kinder and gentler than men.  More nurturing.  Fathers are, after all, the disciplinarians.  “Just wait until your father gets home.”  Sons with fathers knew what that meant.  And it wasn’t kind, gentle nurturing.

The American Civil War killed some 600,000 men.  A generation of fathers was lost.  When their sons came of age, they were more sensitive to the suffering of others.  And they felt a mothering urge to do something about it.  In politics they became Progressives.  They grew government.  Because government knows best.  Well, mother knows best.  And a government that mothers would solve all our social ills.  And these men would mother.  Compassionately.  And they thought all that rugged individualism was overrated.

World War I killed some 9 million men in uniform and about another 7 million in civilians.  These fatherless sons would rise in power and help create the cradle-to-the-grave welfare state known as European Socialism. 

World War II killed some 400,000 American men.  And their sons would follow the European’s lead.  They would attend the universities where the progressives taught.  They came out with heads filled with caring and compassion for victims everywhere.  LBJ’s Great Society would grow out of this movement.  As well as a hatred for American rugged individualism.  And anti-war fervor.

AND THEN YOU had the filthy, maggot-infested hippies.  South Park is a crude comedy.  And Cartman has few redeeming qualities.  But he’s right about hippies.  They ruined this country.  Born in the baby boom following World War II, most had the benefit of a father.  However, by the 1960s, the universities they attended were a lost cause.  Their professors would attack whatever their parents taught them.  They would learn to hate.  In a kind, gentle, nurturing way.

They hated America.  How it became.  What it did.  What its values were.  Are.  Instead, they would embrace America’s enemies.  Have kind, gentle, nurturing compassion for them.  They were proud Marxists.  And Communists.  They relished their First Amendment right to attack the American Republic that gave them that right.  While they supported oppressive regimes where you had no such right.  And spoke ill of the government at your own peril.  Oh, they damned America and its allies for all of their ‘crimes against humanity’.  But they said nothing about the reigning co-champions of human rights abuses.  The Soviet Union.  And Communist China.  No, they wanted to extend the proletarian revolution to America.  So more could suffer the worst of human rights abuses.  Why would anyone adopt such a conflicting course of political action?  Because they’re idiots.

Power to the People.  Give Peace a Chance.  All You Need is Love.  They knew all the answers.  John Lennon et al.  War was business.  Nothing more.  Or the folly of kings.  As the Monkees sang about in this anti-war song:

They met on the battlefield banner in hand.
They looked out across the vacant land.
And they counted the missing, one upon one,
None upon none.
The war it was over before it begun.

Two little kings playing a game.
They gave a war and nobody came.

(from Zor and Zam by Bill Chadwick and John Chadwick
Album: The Birds, the Bees and the Monkees)

This is what the anti-war people believe.  Either war is business.  Or the folly of kings.  That there is no ‘bad guy’ in war.  Just pawns.  And units of production.  Because human nature is peaceful.

WHO DID THE high school bullies pick on?  Who did they pansts?  Steal their lunch money from?  Give a wedgie to?  A swirlie?   Beat up.  Belittle with name calling?  Not tough guys.  Weak guys.  This is human nature.  The strong feed on the weak.

WHEN GUN OWNERS discovered a ‘loophole’ in Floridian law about carrying concealed weapons, they started carrying concealed weapons.  What happened?  Crime on Floridians dropped.  Crimes on tourists rose.  Why?  Because the bad guys knew that tourists didn’t carry concealed weapons.  This is human nature.  The strong feed on the weak.

BACK WHEN DETROIT was the murder capital of the U.S., a friend traveled there and bought a t-shirt.  It read, “Detroit:  Where the Weak are Killed and Eaten.”  Now I don’t recall reports of cannibalism in the Motor City, but the message was clear. Figuratively, of course.  Human nature was becoming animal nature.  The strong feed on the weak.

MANY ANIMAL SPECIES have large litters.  Or numerous litters.  Like bunnies.  Cute little, fluffy, harmless bunnies.  But bunnies are tasty.  They’re low on the food chain.  They are food to almost every carnivore in the wild.  Including man.   Few bunnies live long before becoming a meal.  This is animal nature.  The strong feed on the weak.

“IN EVERY GENERATION there is a chosen one.  She alone will stand against the vampires, the demons and the forces of darkness.  She is the slayer.”  (From the television show Buffy the Vampire Slayer.)  In the world of vampires, demons and the forces of darkness, it’s kill or be eaten.  It’s even the nature of the supernatural.  The strong feed on the weak.

BIG GOVERNMENT AND UNIONS grew big and powerful in the 20th century to protect the little guy.  They said that Big Business and the free market favored the rich and powerful.  At the expense of the poor and weak.  They said it was human nature.  For the strong to feed on the weak.

DURING THE TIME of America’s involvement in Vietnam, the Communist Party of Kampuchea went on a killing spree.  While the hippies protested Vietnam, they praised the social compassion of anti-capitalistic communism.  Power to the People.  Baby.  Meanwhile, the Khmer Rouge killed their own people wholesale (by a percentage of population killed, the greatest in history).  Included in the genocide lists were students or people with glasses.   They killed any ‘educated’ person.  And those who even looked educated.  So, yes, the hippies supported a movement that would have killed their own worthless selves if given the chance.   Human nature at its worse.  The strong feed on the weak.  And the stupidity of hippies.

THERE ARE BAD guys in the world.  And there’s no denying it.  Human nature is not peaceful.  It is anything but.  Darwinian Theory never played out so fiercely.  The strong feed on the weak.  They seek them out.  Like a predator in the wild, they seek out the weak and maimed and move in for the kill.  You can’t reason with them.  Just like you can’t reason with a bully.  Those who think that we can need to man-up and face facts.  And if you can’t, don’t worry.  We have others that are more than willing to man-up and fight our battles for us.  To keep America strong.  If we let them.

Predators don’t respect weakness.  They respect power.  And power is the only thing that will deter them.  The bad guys have attacked American soil few times.  Because America is powerful.  You mess with the big dog and it’s going to bite you.  And maul you.  So the bad guys don’t mess with the big dog often.  Because they pay dearly when they do.

America has known peace and prosperity like few other people can possibly imagine.  And the reason for that is that we have the biggest and baddest military in the world.  It kept the Soviets at bay in Europe.  It thumped Iraqi’s vaunted million-man army in less than 100 hours of combat.  It then thumped them again with a smaller force.  (That display of power cowed Libya from sponsoring terrorism for fear of that awesome power thumping them next.  And it got the Saudis to do the politically unthinkable – take on Al Qaeda in their kingdom.)  It ran bin Laden deep underground leaving him more impotent than threatening.  It held the line in Korea.  And it won every battle it fought in Vietnam.  (Of course, everything went to hell in a handbasket when we left.  But that’s another story.)

But that kind of power doesn’t come cheap.  And you gotta have the will to use it.  But when you do, you get peace.  An expensive peace, yes.  But peace is always cheaper than war.  Especially when that peace deters war.

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