Autos troubles, race at root of Detroit collapse

Jul 21, 2013 Full story: WFAA-TV Dallas

Blue-collar workers poured into the cavernous auto plants of Detroit for generations, confident that a sturdy back and strong work ethic would bring them a house, a car and economic security.

Full Story
bensleys reality

Nashua, NH

#1 Jul 21, 2013
Change is the problem.

the economy and the population changed and the inflexible city hall did not change hence it failed.

could give you chapter and verse from the history of Detroit but you can read that on your own.
reality is a crutch

Nashua, NH

#2 Jul 21, 2013
yea ya can thank the unions

da international brotherhood of amalgamated drug dealers and storm door repair people union local 16663426c

demand more a more without any regard for who will pay the cost of those expensive union contracts negotiated under the THREAT of walk out or strike.

so union morons who going to pay you now the city is broke??

hey go see the democrats they bought your votes with large fat union contract perhaps they can make good on the promised they made in bad faith.

must be some of them out of jail by now.......
Pete

Livonia, MI

#3 Jul 21, 2013
It's hard to blame the unions for what the city administrators agreed to just as with the car companies. Management did not have the strength of character to be fiscally responsible. If you give your kid two scoops of ice-cream you can't get mad because he ate it and got fat.
reality is a crutch

Nashua, NH

#4 Jul 22, 2013
Pete wrote:
It's hard to blame the unions for what the city administrators agreed to just as with the car companies. Management did not have the strength of character to be fiscally responsible. If you give your kid two scoops of ice-cream you can't get mad because he ate it and got fat.
But in the real adult world we live in isn't someone suppose to step up and play the role of the adult supervising the situation and look out for the overall good of the community and the players involved. you know the long view???

Cause if everyone just worries about the "Me" factor or "mine first" you could end up like Detroit.

which is what happens when no one looks at the big picture.

There is an old polish proverb which states

" you can't drive to Detroit while watching the hood of your 53 Desoto "

The wisdom in that proverb is clear to all even city hall mismanagers,

you have to be watching down the road to anticipate and deal with the road hazards as you approach them. Be prepared, unlike Detroit.
reality is a crutch

Nashua, NH

#5 Jul 26, 2013
Failure of Detroit city government is a result of a perfect economic storm.

First.
understand that business and markets are not static they are dynamic they grown change, evolve or fade away.

America used to make wagon wheels for buckboards and stage coaches but those along with the buggy whip business got swept aside by the auto and paved roads.

GM Ford and Chrysler were the kings of auto production in America for years. But change came to the market place. the executive's could see the change in consumer purchase choices going up and down I65 right out side the office windows.

the oil embargo crisis of the late 70's caused American consumer to want and purchase smaller more fuel efficient autos but GM et al ignored market trends and kept producing what they wanted the big cars with bigger profits.

The foreign car companies produced and sold what the consumer wanted. hence the failure of the big the three to adapt to market changes.

second.

Auto manufactures did not change but city government did not change either.

There was a time when everyone was making money in Detroit and the city was flush with money, hence they could open all sorts of new projects fund any greedy union contracts and not worry about the money to pay for those programs & contracts.

but when business fell off the city should have but did not scale back spending, that is the major failing of city, county, state and federal governments they never cut any program or expense they just keep adding cost and taxes.

The problem is the tax payers have a limited amount of money in the check book and the more government takes out the less there is to fuel the economy.

Then came the big burn on Detroit. blacks burned looted down town and began the tax payers middle class flight from the city which added to the reduction of revenue to the city but again the city failed to reduce spending to match the reduction of revenue coming into the city.

add in the one party democrat & union control rampant corruption of city government for 60 years which is not good for any democracy or any economy and you have the PX for city economic failure.

MI has historically been mostly been limited revenue source state depending on autos, auto parts suppliers, farming and education to fuel the city, county, state governments.

when all of your economic eggs are in just a very few baskets you have to carefully manage spending to match income, Detroit did not do that.

there is an axiom in economic which states

"what you tax you get less of, what you subsidize you get more of"

now look around Detroit and you see the results of 60 years of ignoring that axiom.

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