How do you explain what is happening to Detroit?

[Lowell]

I have received a lot of 'What's happening to Detroit' emails from friends, family and the curious who don't follow Detroit events closely. I'd bet you are to. Hence my question.

After the third time I decided I need a boilerplate response, to paste into future emails, and wrote use the following.

Regarding Detroit, and since I get asked about it a lot lately, here is a little explainer that I wrote previously. It's a bit long but actually its fairly brief compared to the immensity of the problem.

The City of Detroit has been bankrupt for a long time, like the Road Runner coyote who has run off the cliff and stays suspended, until he looks down.

You may notice I said "City of" Detroit. The City of Detroit today is less than 20% of the entire population of the one hundred plus communities that comprise Metro Detroit. Its population has declined from nearly 2 million largely middle class residents to under 700,000 largely impoverished residents.

The remainder of the 5 million plus Metro Detroit is doing somewhere between okay and great. It includes the [what once was] 3rd richest county in the US and covers a couple of thousand square miles.

A combination of factors, with racism and globalization at its core, evolved a city left with poverty and unemployment rates of nearly 50%.

A resulting rise in crime, blight, diminished public services, corrupt politicians, higher insurance rates and taxes drove out the middle class, first the white and then the black, leaving the City of Detroit as the landfill for Metro Detroit's problems.

A seemingly unfixable situation exists. Hundreds of thousands of Metro Detroit’s poor who cannot pay taxes yet have great problems requiring taxes are concentrated in the City of Detroit.

Added to that there is a large City of Detroit pension-recipient group that was awarded generous pensions when the city was better off and had a huge workforce. Few of the pensioners remain in the city and last year a third of the budget left the city to pay that obligation while public services tanked. By 2020 it was estimated that pension obligations alone would consume over 60% of the budget.

Police, fire-fighters and public servants have suffered layoffs and wage and benefits cuts resulting in loss of morale and decline in productivity. They often leave at the first opportunity. So the poor City essentially provides free training for the surrounding communities. It goes on and on… a downward spiral that led to the inevitable official bankruptcy.

Detroit Metropolitan union with the sharing of the good and bad is the long-term solution. But many powerful surrounding communities find it too convenient to keep 'them' away and use Detroit to mask their failures with look-at-how-bad-it-is-there deflections. The City of Detroit is 85% African-American, the surround is the opposite ratio.

They have not yet suffered enough from spillover crime, damage to regional brand and product identity, the domino effect of flight and blight that is in full force in the depopulating inner ring suburbs, damage to bond ratings and other ills of division that plague the entire region.

The person with tuberculosis in the next cubicle is yet not their problem.

No matter how well an un-elected outside financial manager may balance the books and make the City of Detroit solvent our core division, where the City is stuck bearing Metro Detroit’s burdens, will continue to impede progress and Detroit's crisis will recur.

[mwilbert]

It includes the 3rd richest county in the US

No, it doesn't. Oakland isn't in the top ten. Actually it isn't in the top hundred, at least not as far as I can tell. Livingston might be in the top hundred. People haven't internalized the fact that Michigan has gone from being a top-ten state in terms of income to someplace in the mid-thirties. That isn't just Detroit, although I don't think it is entirely unrelated to metro dysfunction.

[rb336]

No, it doesn't. Oakland isn't in the top ten. Actually it isn't in the top hundred, at least not as far as I can tell. Livingston might be in the top hundred. People haven't internalized the fact that Michigan has gone from being a top-ten state in terms of income to someplace in the mid-thirties. That isn't just Detroit, although I don't think it is entirely unrelated to metro dysfunction.

What is scary - and tells you just exactly what is wrong with the US - is that 10 of the top 15 are near Washington - and 4 of the top 5 [[according to The Street) Three are near NYC , Hunterdon County NJ is on the boarder of Pennsylvania, about as far from Philly ans it is from NYC, and Douglas County in Colorado [[just south of Denver).

[Sharnelle]

In order to glean better ways of explaining 50 years of complex issues and what to do next, I read a lot of international media which sometimes provides larger perspective, tho' it can be way off base.

When people ask, I begin my answer by emphasizing that the City government is in this situation, while business is beginning to revive in more diversified ways than in the past. Then I say that the people have a lot of intangible assets, such as a culture of making things, low tolerance for phonies, and an attractive quirkiness. What other city has that combo of qualities?


Then I say that several cities in the U.S. must find ways to work through similar problems. Formal BK filing draws national and international attention to a dire financial situation that will require compassion and innovation to work through legacy obligations and restore public services.


To deal with loss of tax base, I tell people that there should be a period of cheerleading amnesty in Detroit, so that businesses and individuals will hear the "nice things." For people who cope with the daily realities of what 50 years of abuse does to a city, the rah-rah stuff must be hard to take. But potential new taxpayers need to hear a new story and see new images of a Detroit that is better than the good old days. Wait...that sounds like a song!

[Wesley Mouch]

After the third time I decided I need a boilerplate response, to paste into future emails, and wrote use the following.

Great summary. My only criticism is the degree to which you use the passive voice. "evolved...left with poverty and unemployment rates...resulting rise...leaving the City of Detroit...unfixable situation exists...was awarded"

I believe the missing component in your missive and in Detroit's mindset is acceptance that the actions of the City are part of the problem. Sure, they may not even by 10% of the problem. But they are not insignificant.

Unless we accept our minor but crucial role in creating the crisis, we will not find help forthcoming. Many of the 80% outside the city may see the problem, and want to help. But they won't do so until Detroit helps itself and stops blaming the problem solely at the economy, racism, and globalization.

Only Detroit can change the debate. Only Detroit can change itself.

[Lowell]

No, it doesn't. Oakland isn't in the top ten. Actually it isn't in the top hundred, at least not as far as I can tell. Livingston might be in the top hundred. People haven't internalized the fact that Michigan has gone from being a top-ten state in terms of income to someplace in the mid-thirties. That isn't just Detroit, although I don't think it is entirely unrelated to metro dysfunction.

Yeah you're right. Thanks for the fact check. It's been a few years since I looked that up and what can I say but 'oh how the mighty have fallen'.

In some ways the correction reinforces my argument as to how Detroit's decline has spread outward.

[Lowell]

... so until Detroit helps itself and stops blaming the problem solely at the economy, racism, and globalization.

Only Detroit can change the debate. Only Detroit can change itself.

I don't accept that the City of Detroit can't change itself on its own. It carries too much burden to ever pay its own way. I do agree with your drift however and do believe the city, particularly with enlightened leadership, can do much to build consensus with the region and the state to possibly find a way out.

[Wesley Mouch]

I don't accept that the City of Detroit can't change itself on its own. It carries too much burden to ever pay its own way. I do agree with your drift however and do believe the city, particularly with enlightened leadership, can do much to build consensus with the region and the state to possibly find a way out.

Lowell -- I most certainly don't think Detroit can get out of this without help. I do believe most of the cause of Detroit's woes are not self-inflicted. Sure, there's some pension abuse. And there's a lot of bureaucratic stupidity. Detroit may be worse than other cities -- so we got to bankruptcy first during these tough times -- but we're not that much worse.

But until Detroit stops fighting change, help will not really arrive. If she opens her arms, I think there's a lot of help that will materialize.

There's a power battle going on. In many ways, it remains a racial power battle. The city cares deeply about race. A big issue. But frankly outsiders don't care that much. Outsiders have made big concessions. No defined benefit pensions for Oakland County nor City of Royal Oak. So why should they support Detroit's defined benefit world? Pensions are only an example -- but if Detroit keeps fighting to restore the old ways and cares about black control -- help will not arrive. Racist? I don't think so. Its just human nature. You only help your neighbor after he starts to clean up his own yard.

[sumas]

I am curious Lowell as to how you view regional government like Toronto. I always like your take on things

Me, I have zero reservations about that type of regionalism. But that is just me.

Oops, need to do my Duggan plug. He has the ability to figure this whole mess out. I was a litttle shocked at Barrow's racism. This city is bigger and better than that crap.

[mwilbert]

In some ways the correction reinforces my argument as to how Detroit's decline has spread outward.

I agree. Of course it isn't all about Detroit, but a metro area without an attractive central city is crippled in competition with others.

[professorscott]

Detroit famously has liabilities, well known to everyone, so I won't waste pixels reprising them here.

Detroit has assets:
Civic minded business people [[not all, but many, and some quite influential)
Higher education [[WSU, UDM)
Inexpensive real estate [[this won't be the problem it seems to be, or even a fact, forever)
Extremely long stretch of frontage on a major river
Two international border crossings [[three if you count the truck ferry)
Great music

And this one gets its own paragraph: a charmingly quirky blue-coller mindset that extends to people who, other places, would be unreachable celebrities [[your kindly old Professor once had a delightful chat with Mr. Steve Yzerman at a Tigers game, and he [[Prof) was not known personally to him [[Mr. Y) at all). An even better example: when the Red Wings finally won Lord Stanley's cup after a long drought in, what, 1997 or so, and had the victory parade downtown, Al Sobotka rode in the parade on [[natch) the Zamboni. That's cute enough all by itself, but I ask you: [[1) in what other city would this ever happen, and [[2) in what other city would just about everybody who went downtown for the parade know the name of that particular individual.

The current news media cycles are heavy on the negative [[why the City has filed for bankruptcy) and the mechanical [[how precisely does this bankruptcy unfold), but this does not touch on the overall reality of the situation. Detroit is a warm-hearted person, bad at business and mathematics, who has failed to keep the roof of the house maintained, and now cannot afford to fix all of the problems the leaking water has caused, nor to pay back the people from whom money was borrowed for the purpose. Now some wealthy patrons are making the odd repair [[e.g. new ambulances) and we are asking a judge to let us fix some of the problems caused by our lack of business savvy and attention to numbers.

After that, who knows? We shall see.

[KJ5]

I thought Jerry Vile explained it nicely with that can of Crisco he put by the Joe Louis fist.

[Hamtragedy]

I wonder how those cities in the sun-belt will fare in the next 75 years. Cities like Houston, San Antonio, Phoenix keep annexing those communities that surround them. Houston is over 600 sq miles. San Antonio has 7 school districts while it annexes surrounding communities, and has taken over Detroit's #4 ranking in terms of population, but is continuously trying to keep up with pumping water to those places in the hills, rapidly developing.

Since regionalization, or at least annexation, powers have been limited in northern states, we will never be on a level playing field, and have not been since the 40's.

Until the funding mechanism is fixed on so many levels, schools, [[do we really need 100 different school districts in this area?) local governments, [[half of them border-line broke, including counties), or until the realization that we can no longer afford to be hundreds of separate communities seems ridiculous to the masses, Michigan will continue to lag in terms of being progressive and able to adapt to the 21st century.

Get busy livin' or get busy diein'. I say screw this entire state until it gets its head out of its collective ass, cuz this ain't a Detroit problem, it's a Michigan problem. My entire life I've been hearing "that will never happen", when the answer all along has been "IT NEEDS TO HAPPEN". This state must be proactive in how this entire thing plays out, and if they choose to live in the 1950s, and the City and region come up with more dumb-ass 1970's solutions, not a damn thing is going to happen here that fixes a damn thing.

Let's pretend it's 2013, change the course of dead thinking, and make this entire region bang its collective skulls together to bring all of us to reality. I'm keeping my fingers crossed, but I'm not betting over $1.

[Sharnelle]

When people ask me about the shameful, mutually destructive relationship the suburbs have with the city of Detroit, I admit that the only way this is likely to change is through the major shift to cities that is happening everywhere. Some experts believe that all suburbs are vulnerable to becoming the dangerous slums of the future.

Many young people no longer want to work in anonymous, dismal suburban "office parks" and, increasingly, they don't want to live in isolated suburban neighborhoods. More older people want to "age in place," which means being able to walk to socialize and get groceries. When sons and daughters move to the city of Detroit, a suburban parent is more likely to support funds for public safety and other services. I call this Sudden Interest Syndrome.

No one in Toronto would recommend the "mega-city" government we had forced upon us in 1998, where I live downtown [[I was born in the city of Detroit). People in the suburbs categorically hate us instead of seeing the benefits of our mutual success. Our divisive, buffoon mayor was elected by suburban vote and the city must cope with the consequences. It is likely that he will be re-elected, despite his notorious activities that continue to attract worldwide attention.

[Hermod]

No one in Toronto would recommend the "mega-city" government we had forced upon us in 1998, where I live downtown [[I was born in the city of Detroit). People in the suburbs categorically hate us instead of seeing the benefits of our mutual success. Our divisive, buffoon mayor was elected by suburban vote and the city must cope with the consequences. It is likely that he will be re-elected, despite his notorious activities that continue to attract worldwide attention.

Bingo: If there is full regional consolidation into a mega-city of "Greater Detroit" or some such designation, there is a very good chance of having Brooks Patterson or his clone as the mayor and the greater city legislative body [[commission/council) will reduce the members from "old Detroit" districts to being posturing backbenchers. That is why Detroit just wants money and not regional consolidation from the metro area. They do not want to lose their political power.

[mwilbert]

Bingo: If there is full regional consolidation into a mega-city of "Greater Detroit" or some such designation, there is a very good chance of having Brooks Patterson or his clone as the mayor and the greater city legislative body [[commission/council) will reduce the members from "old Detroit" districts to being posturing backbenchers. That is why Detroit just wants money and not regional consolidation from the metro area. They do not want to lose their political power.

There is certainly some truth to that, but of course regional consolidation wouldn't be on the table even if Detroit were wildly in favor of it.

[Zacha341]

To Barrow we're not better. He is still spouting the same ole... and actually functioning more as a dusty 'talking-head' for any one but Duggan. Perhaps he reasonably knows HE is 'toast' for any chance to win.

I am curious Lowell as to how you view regional government like Toronto. I always like your take on things

Me, I have zero reservations about that type of regionalism. But that is just me.

Oops, need to do my Duggan plug. He has the ability to figure this whole mess out. I was a litttle shocked at Barrow's racism. This city is bigger and better than that crap.

[Patrick]

What is scary - and tells you just exactly what is wrong with the US - is that 10 of the top 15 are near Washington - and 4 of the top 5 [[according to The Street) Three are near NYC , Hunterdon County NJ is on the boarder of Pennsylvania, about as far from Philly ans it is from NYC, and Douglas County in Colorado [[just south of Denver).

Yep, I am in the DC region now and it is scary to see just how much wealth is concentrated in such a small area. Most of the people here have no idea how bad it is outside of the region...

[Wesley Mouch]

I wonder how those cities in the sun-belt will fare in the next 75 years. Cities like Houston, San Antonio, Phoenix keep annexing those communities that surround them. Houston is over 600 sq miles. San Antonio has 7 school districts while it annexes surrounding communities, and has taken over Detroit's #4 ranking in terms of population, but is continuously trying to keep up with pumping water to those places in the hills, rapidly developing.

Since regionalization, or at least annexation, powers have been limited in northern states, we will never be on a level playing field, and have not been since the 40's.

Until the funding mechanism is fixed on so many levels, schools, [[do we really need 100 different school districts in this area?) local governments, [[half of them border-line broke, including counties), or until the realization that we can no longer afford to be hundreds of separate communities seems ridiculous to the masses, Michigan will continue to lag in terms of being progressive and able to adapt to the 21st century.

Get busy livin' or get busy diein'. I say screw this entire state until it gets its head out of its collective ass, cuz this ain't a Detroit problem, it's a Michigan problem. My entire life I've been hearing "that will never happen", when the answer all along has been "IT NEEDS TO HAPPEN". This state must be proactive in how this entire thing plays out, and if they choose to live in the 1950s, and the City and region come up with more dumb-ass 1970's solutions, not a damn thing is going to happen here that fixes a damn thing.

Let's pretend it's 2013, change the course of dead thinking, and make this entire region bang its collective skulls together to bring all of us to reality. I'm keeping my fingers crossed, but I'm not betting over $1.

You are so right in many ways. How will this play out? Well, it is playing out. The region refused to change. Went broke. And will start enjoying the medicine required.

We don't have to regionalize -- but we certainly do have to start sharing services to eliminate waste. Many suburban communities are starting to share -- under the radar. Police dispatch is now shared in many communities I hear. Inkster is now sharing schools with other communities. Its gonna happen. Inefficiencies always come back to haunt you. We can fight it, but San Antonio will just take advantage of us.

[Cliffy]

Racism is killing Detroit and its not white racism, its black racism. People like Tom Barrow, Benny Napolean, Joann Watson, Kwame Kenyetta etc... I've never seen such a racist city. We put Boston to shame.

[coracle]

We don't have to regionalize -- but we certainly do have to start sharing services to eliminate waste. Many suburban communities are starting to share -- under the radar. Police dispatch is now shared in many communities I hear. Inkster is now sharing schools with other communities. Its gonna happen. Inefficiencies always come back to haunt you.

You're right, particularly for services like Policing and Schools and I'm sure there are others like money and money management. What services does Detroit have to offer that are currently being wasted and could be more efficiently used by the other communities taking part in the sharing?

[Wesley Mouch]

Racism is killing Detroit and its not white racism, its black racism. People like Tom Barrow, Benny Napolean, Joann Watson, Kwame Kenyetta etc... I've never seen such a racist city. We put Boston to shame.

These people aren't necessarily racists -- they're just on power trips and the rhetoric of 'black control' and 'local control' resonate with voters who feel victimized.

What they realize is that the real victimization is occurring to them today at the hands of 'buffoons' above who care more about their power than the lives of their victims.

[Bobl]

Ironic that this agnostic would sound like a priest or minister, but I believe that the breakdown of family structure and the lack of beneficial role models has much to do with the decline. Too many children raised by ignorant children. Of course, many will argue that I am putting the chicken ahead of the egg, or whatever that analogy is.

[Honky Tonk]

Ironic that this agnostic would sound like a priest or minister, but I believe that the breakdown of family structure and the lack of beneficial role models has much to do with the decline. Too many children raised by ignorant children. Of course, many will argue that I am putting the chicken ahead of the egg, or whatever that analogy is.

I think that's a good call.

[rb336]

just some food for thought

http://www.nytimes.com/2013/07/22/op...=fb-share&_r=0