posted on Dec, 6 2013 @ 09:08 AM
Detroit got too big for its britches.
You had one big industry that fueled it. That one industry was infested with a union that steadily demanded more in wages and benefits, including
pensions, that eventually bankrupted the industry when other countries started their own, more competitive versions of the same industry.
You had a city government that steadily taxed that industry cash cow and resulting wealthy citizenry into the ground to pay for services fueled by
city workers who also got overly generous wages and benefits, including pensions, that eventually bankrupted it as people steadily moved away to avoid
the taxation leaving behind only those who could either absorb the hit or could not escape steadily breeding all sorts of social problems fueling even
Oh, and then the businesses starting leaving or outright dying for the same reasons as the people were leaving.
Pretty soon, no one could meet their ill-conceived financial promises, and it all went under.
Now, I have no problem with the idea of workers banding together to avoid being taken advantage of, but let's be realistic - is a forklift driver
worth $30/hour + another $30/hour in benefits? because that's what UAW forklift drivers can often pull down contractually. By the time an entire
workforce of such workers are paid for AND they are making their legacy obligation to retired employees AND the big three price to compete with the
non-union Japanese companies, they were only making maybe $2,000/car in some cases which didn't leave enough in overhead to run the company.
Oh, and when GM and Chevy went bankrupt and the government bailed them? They were forced to continue their legacy union obligations, but white collar
pensions were cut leaving those former employees high and dry.
But it's examples of mismanagement like this all throughout Detroit's structure that make it rotten to the core. Did you know that Detroit buys
it's library janitors business cards? This is a city where up to 47% of the population is functionally illiterate ... And this is not confined to
just Detroit. This sort of epic failure is rampant across America. Atlanta is cumbling in the same way. Her own suburbs are disincorporating from her,
and the city is suing them for racism of all things because they are doing it. When suburbs are leaving a city, you know there is trouble.