What happens when a city goes broke?
@PhillyDreamer (3039)
United States
May 27, 2012 11:36pm CST
I just read an article about the city of Detroit not being able to afford to keep the city lights on. I must say that I admire the government officials who are still fighting to keep this city alive, even though the city has been in bad economic shape for quite some time. Detroit was once a booming area to live in when all the car manufacturers had factories there, but once the factories closed down many citizens were forced to move, and many decided to turn to a life of crime. The city now has to wrestle with the decision of what neighborhoods are worth saving, and what neighborhoods will they literally leave in the dark. If the crime was bad in Detroit, it's only going to get worse. I think the U.S. is going to be witness to what happens when one of it's major cities goes broke, and it will be interesting to see what happens to the city of Detroit in the years to come. Do you live in a city where things are as bad as in Detroit? How do you survive in a city like this? Who is to blame for something like this. Give me your thoughts people.
4 responses
@jjzone44 (917)
• United States
28 May 12
Usually when a city becomes "distressed" as they call it, the state takes over and attempts to set up a plan for revitalizing the city. As to what makes a city get distressed in the first place, I would say it's mostly due to irresponsible spending, overextending themselves on loans; basically spending what you don't have. Every city is somewhat different as far as how they generate revenue, some use local and wage taxes, others get funds from tourism. One has to be careful when you generate revenue from wage tax, and you have a significant amount of the populous not working, as the funds you used to have dry up. You can't really raise taxes on the working public as those who can will simply move out of the city, so you end up with even less people paying taxes. You also have to watch if you get funds from tourism; with fuel prices up, airline fees up, people tend to travel less. For example in Las Vegas, hotel occupancy rates are down 30% comparing 2010 to 2007. That 30% loss cascades as less people mean less money spent on all aspects of tourism, from gambling to dining, even souvenirs take a hit. That's 30% of your budgeted income in 2007 that's not there in 2010 and prices for things usually go up in 3 years, not down.( http://bit.ly/LWlJop ) Just think how an individual would deal with it if they lost 30% of their income like that.
@PhillyDreamer (3039)
• United States
28 May 12
It's crazy, I've never heard of a city not being able to afford their electric bills. I imagine shutting off the lights will save money, but when crime increases aren't you just punishing the decent citizens and making it easier for the troublemakers. Maybe the state needs to take over. I wonder how many other cities are facing this.
@jjzone44 (917)
• United States
28 May 12
It has happened quite a few times in history; in fact some cities have become incorporated into other municipalities because they failed. Many cities start saving money by cutting services like police, and passing the duties on to the state. Here is an article about when it happened in St. Louis: http://bit.ly/KwUPzg
Here's a very recent one about Altoona Pa. http://bit.ly/LB0rpZ It happens quite a bit.
@PhillyDreamer (3039)
• United States
28 May 12
Too long. You just reminded me why I don't know so much about this stuff. I did find it interesting hoe federal housing programs contributed to this mess. It leads me to a big question. Would society benefit more from casting out citizens who don't carry their weight, or appeasing these citizens so they don't become a threat to society?
@GemmaR (8517)
•
28 May 12
We are the position in our town where we can no longer afford a lot of the things that the other towns can, because our council have not done the best job this year and this means that they have spent too much money. For us, it has meant that people working for the council have been released from their job, and that includes people who work in places like libraries and things like that. Local services such as rubbish collections are becoming fewer, because they can't afford it, and they have to be making things like street lights a priority as they are the things that are needed to make the town safe, whereas the things like our libraries are more of a luxury really.
@debrakcarey (19887)
• United States
29 May 12
And there you have the problem in a nutshell philly, UNIONS and the government insisting on having a minimum wage law.
http://www.youtube.com/watch?v=2jv1Zae0sgo
http://www.youtube.com/watch?v=ca8Z__o52sk&feature=related
@PhillyDreamer (3039)
• United States
28 May 12
Here is one thing that bothers me. People getting paid so much money to collect garbage. This seems like a unique opportunity to employ a welfare to work strategy. How many people are collecting welfare and unemployment, why not put some of these people to work collecting garbage.
@debrakcarey (19887)
• United States
29 May 12
And on the trade unions:
http://www.youtube.com/watch?v=gQ7JbP6HJ6U&feature=related
@bobmnu (8157)
• United States
28 May 12
Right now there are people who are buying property in Detroit because it is so cheep. many people feel that this is a result of the government trying to take care of everyone and provide for people. Taxes go up and those who can move out while those who depend upon the government stay and pay no taxes but take all the resources from the government.
What is going to happen when California goes under. People are already protesting because taxes are too high and then they turn around and protest because the state is cutting spending. College used to be free or almost free to CA Residents. A student could move out there and live for 6 months to a year and then get an almost free education. Some of the fastest growing states are states with a consumption tax and not a tax on income. People tend to move from high tax states to low tax states (which also provide fewer services and you decide what services you want to pay for).
@PhillyDreamer (3039)
• United States
28 May 12
I think Detroit is making the tough decisions, but who knows if it will work. I've heard about California's high tax rate, I imagine people will start to move if they are unhappy, and maybe the state is just too densely populated for it's own good.
@crossbones27 (53005)
• Mojave, California
30 May 12
Its simple create some jobs, they will be able to afford to pay the bills. These people are cutting how do you create something by taking things away.
@crossbones27 (53005)
• Mojave, California
30 May 12
I understand what you are saying. I just think we always go about these things the wrong way. Personally I think they should get all these lawless people and form a work task force. Find a small abandoned building that is not to bad of shape. This way it will not cost to much. Have these people rebuild into a little super market or something. Have them take before and after pictures. This way the people can appreciate the work. Then take Take those pictures and find people who might be looking to start their own little business and see if you can get more people to fund the next small building.
I think the problem with this country at times it always thinks we need mega rich people and big commercial buildings. You have to start somewhere and you do not get those bog commercial buildings over night. It takes decades to build things up that big. It just like anything you build one brick at a time. You get these impoverished people to do it. They will then appreciate the work and maybe appreciate their lives and city once more.
The problem is government and society never want to do it this way. They just want to move these people to other places so they do not have to look at them. Why do you think they become criminals? At some point these people just have no where else to go, and know that no one is going to help them. So they are going to make their own society with what ever means are available. In other society just make it worse. It is never easy but ignoring the problem only cost the tax payers in the end, and makes everyone's else s job in that city that much harder.
@PhillyDreamer (3039)
• United States
30 May 12
That is a good point, but this is a case where businesses abandoned the city first, then crime and lawlessness followed. You add all the abandoned properties by citizens who went on to greener pastures. Its been a downward spiral ever since. There is a way to rebuild, but it's going to take some tough love on the part of the government.
