11 May 2011

The decline and fall of Detroit

Detroit is dieing because of a few things.  Since "anonymous" challenged my "critical reasoning" skills I figured I really ought to shed some light on the situation.  The major cause of Detroit's woes are,


The United Auto Workers union.
Bad business decisions by the Big Three.
Democrat management creating an unhealthy business environment.

The UAW story is well known.  Ever increasing benefits and pay, even demanding "job banking" to force the Big Three to hire people to sweep the floor at 53 dollars an hour.

The bad business decisions by the Big Three included, stock buyback campaigns to stuff the pockets of executives, failure to increase quality control standards to meet the Japanese threat, and failure to embrace efficiency.

The Democrats in charge of the city, well they may not be totally to blame as the state of Michigan has not done well in the rankings of business friendly states.  In 2004 Michigan even beat out California for the state most hostile to business.  But is there anyway to turn Michigan and Detroit around and create the growth of Texas or Utah?  Not with Democrats in charge.

Which is a good thing that Michigan's Legislature is controlled by Republicans.  Since 2004 a large number of business hostile taxes have been rolled back and current ratings put Michigan at #17 out of 50.  This is good news for Michiganders (and bad news for Democrats who have had their anti-business policies largely gutted).  But no matter what the State does, it can't control the Big Three, or undo decades of poor decisions.

Bottom line is that once it became unprofitable to work out of Detroit manufacturing left, market forces will not be denied.  Who is to blame for that?  Largely unions and Democrats.  Because even though Ford, GMC, and Chrysler made poor business decisions, they had to leave to maintain some sort of profitability.

5 comments:

David III said...

When I got out of the Army, I took a job for a contractor at the Rouge plant (Detroit,Ford) I was amazed they were even able to operate! There was this one Ford Employee who (While drunk at work) set his face on fire. He never lost his job and was back drinking at work in six months! I am pretty sure that less than half the union employees (Worker is a titled that does not fit) were able to read or write. Lots of pictographs for posters at the plant. They also blew up the boilers in the steel portion of the plant killing six guys... Detroit/Michigan was dead when I was there, and you can't raise the dead.

BS Footprint said...

I suppose I shouldn't be surprised that I agree with your assessment.

I can't understand why some people don't get it: if you're hostile to businesses and treat them as sacrificial goats (or cattle to be milked and slaughtered), they tend to migrate elsewhere. At least while they are still free to move.

Vlad Z. said...

People really want the facts to fit their ideology and preconceptions, but in this case it's just not true.

The sad facts are that black people killed Detroit, not the UAW.

The UAW may suck but Ford operates UAW staffed plants all over Michigan, builds millions of cars and trucks in them, and makes money.

Detroit died in 1967 when the riots happened. Unlike now, back then the media would report the obvious truth. The obvious truth of the Detroit riots is that blacks rioted against whites, killed whites, burnt white-owned businesses while sparing the black-owned ones next door, and where quite clear in communicating that the riots were 'anti-white'. (Go back and listen to Stockley Charmichael's rants.)

White people were intimidated, got the message and moved en-mass outside the city. In 1970 the blacks used their new found majority and political skills to elect a outspokenly anti-white mayor, Coleman Young who was both extremely corrupt and quite incompetent.

During his long (almost 20 year) tenure in office many other businessnes, most of them non-unionized, left the city because of the dismal level of services, high taxes (Detroit has higer taxes than an other location in Michigan by several percentage points, including higher income taxes) and unending crime wave.

Among the many cronies that Young appointed was a police chief who was in league with some of the drug gangs who eventually came to rule the streets of the city.

It was black people, en mass, who insisted on electing and re-electing racist anti-white demagogs. It was the overwhelmingly black citizens of Detroit, not "unions" who raised a generation of kids to be theives, pimps, hos, and drug dealers who made Detroit the high-crime badlands it is known for worldwide.

I was there. Respectfully, you are badly misinformed if you think the UAW was anything but a bit player in the downfall of Detroit.

Louis Brown said...

The sad fact is racist refuse to accept the fact that the riots were caused by racism. One statistic illustrates that fact. The black population at the time of the riot was 30%. The police department was 95% whwite with a reputation for brutalizing blacks.

AM said...

Louis Brown,

And the blacks in Detroit are so much better off now?

Clearly rioting gave them enough political rope to hang themselves. If those rioters could see the consequences of their actions, do you think they would do it again?