CNN - Solution to Detroit's jobless: Move

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The structural challenges and the shrinking of the auto giants in Detroit will force the entire city to downsize, Lonski said, as opposed to other areas where the housing market took a toll on unemployment but is bouncing back.

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http://money.cnn.com/2009/10/28/news...ion=2009102813

Attached to the above article:
"Why I Love Detroit"
http://money.cnn.com/galleries/2009/...oit/index.html

I don't live in Detroit. I can't say I agree or disagree with the first article. But it's interesting.

And the second one is a good read. It's nice to see that Detroiters have pride in their city.

My first reaction was, "CNN reveals water is wet at room temperature."

But then I realized that people nationally may not understand the situation. I hope everyone in Michigan already understood this.

Nothing new. That's why the population is down by half. That's also why there are so many 'formers' now living in Florida, Arizona, Texas, Kentucky and other places.

I wish people understood this.

We used to have enough jobs to support 5 1/2 million people. Well, now there are only enough jobs to support 4 million people, which means a significant portion of the population is going to either have to leave or continue to be a burden on the system. Some people are riding out their unemployment benefits, and that's fine; after all, they paid into the system. But those benefits don't last forever.

The biggest downside is that such a migration will continue to kill the housing market, but I'm afraid there's nothing that can be done about that.

Duh... this is already happening, and has been happening for years. That's why we have such a brain-drain in this state, which is going to hurt us even worse in the long run.

When I came out of MSU in the early '80s there were few jobs here, and a whole lot of the people I graduated with went elsewhere. A large proportion, of not most, of my high school graduating class are living somewhere else in the country. The last close high school friend I had in the area split for Indianapolis, of all places, a couple of years ago. If it hadn't been for my aging parents and the portability of my work I never would have come back here.

But if you're 45 and out of work, with kids and a house and family here, it's nowhere near as easy to pull up stakes as this article so blithely makes it sound. Particularly if your skills are all in some area of manufacturing or heavy industry. Those jobs have all moved outside of the country, with the acquiescence and even the aid of our federal government. The real question is why we, as a nation, have continued to ignore the death of one of our great cities, and other smaller cities across this region, after we had effectively choked off the livlihoods of the many in the name of making a little more money for the few.

But I guess simplistically saying "move!" to people, as if it isn't already happening in droves, and as if those who remain are too stupid to understand the situation they're in, is a lot easier and more comforting [[and cheaper) than actually dealing with the situation.

I don't think Detroit or Michigan should get into the game of actively encouraging residents to leave. That will not solve the employment problems, but instead might make them worse.

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Originally Posted by mwilbert

My first reaction was, "CNN reveals water is wet at room temperature."

But then I realized that people nationally may not understand the situation. I hope everyone in Michigan already understood this.

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I agree, sounds like a rocket scientist wrote this article. What is even worse is the report of home sales and prices are on the rise. It's obvious as the banks try to get rid of inventory by the end of the year, that sales will continue to increase in the short term. I don't mean to sound pessimestic but I really don't think this nation has seen the bottom yet.

We moved from Florida to Michigan just over nine years ago and still consider that a great move. Although I've been through a few layoffs, living in this state helped convince us to have a child and we've met the most incredible people here. When I visit Florida, I beg people to not consider moving here and it usually gets a few laughs. Too bad the chumps don't know what they are missing. Oh well.

Michigan [[and Detroit, for that matter) is a great place to live if you don't need a job. Lots of people don't, or already have one. However, it is tougher for other people.

We just had a thread on this same article not to long ago [[last week?). My suggestion was, and is, for people to emmigrate to Asia. The unemployed could take a "buy-out" on their unemployment insurance benefits and get a free one-way ticket and relocation expenses.

"Some people are riding out their unemployment benefits, and that's fine; after all, they paid into the system." Completely untrue....your employer pays 100% of your unemployment benefits, both state and federal. Just clearing up misconceptions...

Well, considering we all have paid into both state and federal taxes our whole life, I don't exactly think one should feel the least bit guilty by getting some of those funds back through unemployment. Just to clear up any misconceptions.

While it is true that the employer pays unemployment insurance, this is still a benefit like health insurance. My monetary salary is much lower than my actual salary when you factor in the cost of health insurance, life insurance, company contributions to pension and unemployment insurance. I beg to differ that we don't ultimately pay for this as an employee.

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Originally Posted by Supersport

Well, considering we all have paid into both state and federal taxes our whole life, I don't exactly think one should feel the least bit guilty by getting some of those funds back through unemployment. Just to clear up any misconceptions.

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You're not getting "some of those funds back through unemployment". They're two separate pools of money. You've never paid into unemployment. Your employer has. When you collect, it's charged to them. When people collect more than the employer has put in, their unemployment tax rate is raised. That hurts Michigan businesses. It's not "free money" or "government money", it's money that local businesses have to put out.

It's up to each individual if they want to milk a local business or not, and if they want to feel guilty or not, but at least they ought to have an understanding of where the money comes from. BTW, if an employer's unemployment tax rate goes up to the max 10.3%, don't be surprised when they have to cut back on other compensation-related things like benefits, wages or headcount.

Eh, cost of doing business.

Of course another solution to Detroit's jobless would be for employers to move here. There was a recent article about a company that did just that precisely because of the abundant labor pool here [[among other reasons).

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Originally Posted by Jimaz

Eh, cost of doing business.

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Yep. Both the federal and state systems are set up to penalize employers with high employee turnover the most.

People still watch CNN? I thought everybody watched FOX News!

Live + Same Day Cable News Daily Ratings for November 3, 2009
P2+ Total Day
FoxNews – 1,672,000 viewers
CNN – 515,000 viewers
MSNBC –401,000 viewers
CNBC – 178,000 viewers
HLN –394,000 viewers
P2+ Prime Time
FoxNews – 4,043,000 viewers
CNN – 826,000 viewers
MSNBC –974,000 viewers
CNBC – a scratch w/99,000 viewers
HLN –842,000 viewers
source: www.tvbythenumbers.com

FOX News is the most viewed because it is the most carried. Most hotels, for instance, don't carry the NBC news channels. Also Comcast has dropped MSNBC from its basic cable package.

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Originally Posted by kathy2trips

I thought everybody watched FOX News!

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Not people who want the truth.

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Originally Posted by artds

I wish people understood this.

We used to have enough jobs to support 5 1/2 million people. Well, now there are only enough jobs to support 4 million people, which means a significant portion of the population is going to either have to leave or continue to be a burden on the system. Some people are riding out their unemployment benefits, and that's fine; after all, they paid into the system. But those benefits don't last forever.

The biggest downside is that such a migration will continue to kill the housing market, but I'm afraid there's nothing that can be done about that.

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...Or create jobs themselves.

Maybe it's time that we stopped depending on others and started taking matters into our own hands and learn to play the game for what it is. Do you think Henry Ford sat around crying to his peers about his problems all day?

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Right. Early part of one century, early part of the next century. Potato, potahto.