The Fall of a Great American City?

This is no time for ease and comfort.  It is the time to dare and endure.
            Winston Churchill

What do you know about Detroit, Michigan?  If you are like most Americans, it is decidedly negative.  Images of collapsed industries, abandoned neighborhoods and ambivalent political leaders pop to mind.  Despite the recent Cadillac campaign blitz to show a city that is clawing its way back to relevance, the city faces seemingly insurmountable challenges that few of its predecessors have addressed.  Kevyn Orr, a bankruptcy lawyer and “turnaround expert”, has recently been tasked as emergency manager of the city and represents the largest U.S. city taken over by a state.  He is excited, he says he is optimistic but big government dependency and spending are hard nuts to crack. 

Before Mr. Orr has settled into his job and announced a plan of action, he has been met with a host of protestors, led by the likes of the Rev. Jesse Jackson.  Various groups, fearful of how major cuts in Detroit’s budget could impact them, are galvanizing their forces to object to anything proposed, despite its merit.  Michigan Governor Rick Snyder appointed the bankruptcy lawyer for the express purpose of turning around the shockingly degraded and possibly hopeless case of the Motor City – a city that, throughout U.S. 20^th-century history, was the epitome of American ingenuity, industry and innovation.  Throughout the world, Detroit was the standard bearer of what the United States could accomplish.   

What must be done?  How can Kevyn Orr resuscitate the decaying form of a once proud city?  What exactly are his powers?  There are a great deal of questions – not least of which are the broad powers Mr. Orr possesses and whether they are democratic in spirit or intent.  That notwithstanding, he faces near-overwhelming odds.  Recently, he announced that the relatively low salaries for the mayor of Detroit and the city council will not be touched.  In a press conference, he said that Detroit will not make it back from the brink without their help.  People have complained and Lansing is wondering what they will be getting for their money.   

The first thing that needs to happen is that the unions, both public and otherwise, need to be addressed.  They will fight vociferously against anything Mr. Orr proposes but some of the biggest drains on Detroit’s abysmal finances are the various salaries and benefits jealously protected by the labor unions.  That is not an easy request to carry out.  It could easily sink Mr. Orr’s efforts before they really begin but as the governors of New Jersey, Wisconsin and Indiana have proven over the last couple of years, it is one of the biggest steps towards financial stability.  Second, large-scale tax reform needs to draw businesses and industry back to the city.  For decades, Michigan Democrats have slowly killed the Motor City with anti-business taxation and regulations and it is little wonder that the last couple of decades have seen an Exodus-like flight towards the suburbs or out of the state altogether.   

Lastly, Mr. Orr needs to get out of the job as quickly as possible.  If the citizens of Detroit have little faith in an elected government, all these steps will be for naught.  A new crop of men and women must take the helm towards financial stability that spurns the age-old entitlements and built-in graft that have stripped the city of any ability to govern.  A leader must rise up, face the citizens of Detroit and let them know that, like a Phoenix, they can rise again.  Ultimately, unions, vested leeches and unelected “managers” will not pave the path toward the future.  A new type of leader is required.  Until that happens, Detroit will be the subject of study on how a city can get it so wrong.