The City of Detroit began shutting off water access to residents behind on payments
Posted by LetsShrug 8 years, 10 months ago to Legislation
For love of Galt could someone please call these thieves out on their "fair share" unfairness???
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In connection to that: not to say there weren't some white racists in Detroit back in the 60's, but the infamous "white flight" to the suburbs (along with a lot of the factories and businesses) was just as much caused by the institution of an onerous city income tax at that time. I'm not sure what the income tax status in the city is now, but if it's the same, it will severely retard any hope of recovery.
And also on the issue of "white flight" and racism, it is a fact that most of the neighboring suburbs that whites moved to back then, are now becoming primarily black, and they are moving from...Detroit. Hmmm, I don't recall any articles on "black flight". Are these blacks racist, too?
State income tax is 4.25 which is not quite as bad as Wisconsin or Taxachusetts But then you tack on 2.4% for the city which right there is now higher than Wisconsin. Then to top it all off sales tax is 6%.. Now lets see what the citizens are getting for their "fair share" and its obvious why they leave..
The cities poor management has been unable to repair and maintain the water delivery system which leaks terribly, stop theft of the water or stop the residents from illegally opening hydrants during the summer for fun. Consequently the system loses approx. 15-20% of the produced water. When you add that up with those who fail to pay their bill the cost is considerable.
I have a business associate with a 12 man shop in the City. He is required to pay approx. $3000.00 per month for his water service. He only uses it for the bathrooms, not industrial use. His consumption can not be that high. He does no laundry or showers etc. The City overcharges those it can to cover some of the losses. Unfortunately those are often the businesses. This is just another reason so many businesses have left the city.
I live well outside the city and have well water. Many businesses have moved outside the city to my area in order to avoid these exorbitant fees and thus stay competitive and in business.
The progressive leadership over the last 50 years just can't see the forest for the trees.
Finally there is a Mayor that is trying to get people to pay their bills.
Regards,
O.A.
Good to hear from you. Great comments. Yes, there are some signs of life returning. CPR has been given. Time for a shot of adrenaline and perhaps a new state and federal government more favorable to manufacturing and the old city may start to resemble what we once knew. The local populace will have to be re-educated... I am not too optimistic, since it has fallen so far, and our governance has so deteriorated. But, if it is to make a comeback it will likely be a long road. Rome wasn't built in a day and its decline did not occur overnight...
Regards,
O.A.
Some of the things I see are investors buying up whole blocks of sound but neglected buildings downtown. When I was still there, my niece had her wedding downtown on the river, in a beautiful refurbished area east of the core. I took a walk around during the reception and there was a extraordinarily good-looking office building that, per a plaque outside, was a former brewery. The area was also packed with new and thriving music clubs.
Other things I see as very positive:
I never thought I would see this in my lifetime, but Michigan is now a "right-to-work" state. I was just reading about Volvo opening it's first U.S. plant in South Carolina. Also, no surprise there, a right-to-work state. There is going to be a huge push by the UAW to unionize it, but the odds seem to be, and I agree, that they will fail. Just think if an auto manufacturer, or other large manufacturer decided to locate in Detroit, and kept the unions out?
I have also seen and heard about a surge in "charter schools" in and around Detroit, which are alternatives to the public schools. My sister has been a teacher for 40 years, mostly in Catholic schools before they declined significantly, and she has taught at a few charter schools in Detroit. Along with the looters, there is and has always been a hard-core of moral, hard-working people in Detroit, and they are sending their kids to these schools. I believe I read of one high school where 98% of the kids are going to college. That's a rate that used to be reserved for the private, religious schools, and only the best of those.
I could go on if I had more time. I truly think that Detroit has reached the bottom, and that the lessons of the bankruptcy have been learned (mainly hostility to business), the union's power is significantly diminished, especially the teacher's. The people themselves want change: a white mayor? Seemingly smart and honest. That in itself is amazing to me and says "the times they are a-changin'"...
It's a start, and risky, and we can't forget the overall mess the country and all the civilized countries in the world are in, but maybe Detroit can continue to recover, and serve as an example.
As far as the "all powerful unions", not so much anymore. The UAW hasn't won an organizing battle in a new auto plant in a long time, and IMO the current population of Detroit could not and and did not grow up drinking the pro-union kool-aid of previous generations, if only because the auto plants had closed and moved out of the city long ago. Besides, my example a "big manufacturing" moving back soon is unrealistic, but I think it likely we'll see small and medium size firms starting up.
Also I did some checking on the current status of the UAW, as I knew there had been some big changes in the past few years, specifically a two-tier wage system. In order to survive at all in union plants, in 2007 they agreed that new union workers would start at around $15/hour vs. $28.hour for "veterans" (I actually think the latter figure is understated as I know true long-timers making much more per hour). Of course that type of system can't co-exist forever, and of course the unions, now that the economy is perceived to have improved, want to eliminate the lower tier, whereas the owners want to eliminate the upper. My money's on management.
The other fact I learned, which surprised me at first, and then didn't, is that less then half of UAW members now are actually auto workers.. The majority are now teachers, hospital workers etc., i.e., government sector workers, the only area where unionism isn't declining. And even that trend is being challenged by right-thinking leaders (see Scott Walker). I think unionism is dead in the private sector, and fighting it's last ditch battles only with the help of local, liberal governments.
Well, that went a little beyond paying for water, and even Detroit, I blame it on the coffee (not global warming)....
But if you were interested, the "experiment" started in earnest about the early or mid-60's. If the were such a thing as "time-lapse" movie making, Atlas could have been shot there over the past 50 years...it truly is a laboratory and history of failed local and Federal policies...
The more interesting experiment, which I and others have suggested, and is too radical/rational to ever be allowed, it to declare Detroit a true free-trade zone, exempt from all taxes AND regulations, minimum wage etc...and then see how quickly it recovers. Provided, of course, that at the same time the safety of the law-abiding citizens was restored, i.e., the actual proper functions of government. Other big cities like LA get more press about this problem, but Detroit is close to the top of cities with out-of-control violent gang problems. If you don't address that, all else if futile.
[and thank you - a new saying to put on the calligraphy list, with your permission - a set of professionally-lettered signs stating wise and interesting statements for sale. There's going to be an ETSY store, too.} edited to some semblance of clarity
I left in 1976 to study Econ in grad school, but always kept an eye out on the sad deterioration of a once great American industrial city, and for the inevitable bankruptcy. I had the unfortunate opportunity to witness it closer up, having moved back to a nearby suburb in 2000.
I actually thought the water shutoff had begun a few months ago (I got out of Dodge again in 2012), but a similar hue and cry probably delayed it. Ah, I see the article actually mentions that.
But back to the issue: yeah, this "ability to pay" is a horrible, immoral idea. Not to be too cynical, but there were/are already a lot of public assistance programs that would have helped pay these water bills before they got out of hand, but they chose not to pay as they went, and, hand-in-hand, the politicians let them get away with it. Now it's time to pay up. And to be just a tad more cynical (realistic), I still visit once/month and I don't see any shortage of automobiles, cell phones, cable TV etc. in the city.
I hope the current mayor sticks to his guns. He seems much better than the long string of corrupt mayors (of all "persuasions") that have plagued the city since at least the 30's. The immediately prior mayor tried, but the real villain of the piece is the City Council. They are among the most socialist, race-mongering bunch of misfits that will rival any other Far Left city such as SF or LA. They fought the bankruptcy (which will eventually benefit the city) tooth-and-nail for years, primarily in league (surprise) with the public teacher's union. Fortunately, one result of the bankruptcy and state takeover has been reduced power for them.
Sorry for the rant, but when something bad happens to someone you know and love dearly, all due to politics and immorality, it makes one angry. I'm sure more than a few people here know what I mean.
And as far as the UN, MYOB, and don't dare comment further on my city.
"Have you anything left to loot?" asked Henry Rearden. "What can save you now?"
"Oh, you'll do something!" shouted James Taggart.
And in so shouting, gave the game away.
Enough of this entitlement stuff
But for the most part, the hard core unemployed with minimal labor skills should either get some training (NOT via a public program), or move to a better area for whatever work they are capable of doing.
Amusing in a "black-humor" way (using the term traditionally, not racially): there was a Republican governor a few years back who both made some welfare reforms, but also (seriously) came up with one interesting subsidy program: a one-way bus ticket out of Michigan.
I've seen a lot of cases where people making $50k a year seemed to live quite a bit better than people with $100k a year...
How close we are to Bombay (Mumbai)!
I think we're leaving the world of some countries being rich and others being poor. We have rich/poor people, but they're not segregated as much by nation state. This is IMHO the result of technology and not policy decisions. There's no way to keep some nations rich and others poor, and I don't see that we should want to. This is a tough adjustment for the world. I do not want the undeveloped world of irregular housing and illiteracy to exist down the road from me, but I don't have an answer to make it stop.
Not sure we can expect Detroit, or other, to be something other than a 3rd world country unless we 1) fund them out of existence with socialism, 2) exploit and leverage a 3rd world mess, or 3) let them all struggle as animals until they provide value equal to a relevant position in the contributor's world.
Taiwan seems like a good example of emerging from a mess. They have decent civil rights, and pretty good economic freedoms. They took right off after WWII. Leveraging a hard working workforce and little socialism. I forgive their "martial law" until 1987. They either had to suppress China's communist influence, or be absorbed. Alignment with the US was an obvious choice.
It's very important to have civil rights, economic freedoms, and democratic gov't. It makes everyone richer. It does NOT, however, cause the rich and poor to be separted. I actually think it brings them together.
Which reminds me, flushed with success the moochers of California then asked for water from the Columbia River via pipelines, pumps and canals to the Shasta Sacramento river systems. Now moochers in the south are building huge pipelines to just steal it from the Sacramento system. Where are the tree huggers when you really need them? Why they are living off of your electricity and your water. Suckers.