Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Who Killed Detroit? (The Answer Is Obvious)
IBD Editorials ^ | March 23, 2011 | Staff

Posted on 03/23/2011 6:27:04 PM PDT by Kaslin

Cities: Poor Detroit. It hasn't had any good news for decades, and now, despite a $77 billion bailout of the auto industry, its population continues to implode. The No. 1 reason: the United Auto Workers union.

Cities: Poor Detroit. It hasn't had any good news for decades, and now, despite a $77 billion bailout of the auto industry, its population continues to implode. The No. 1 reason: the United Auto Workers union.

Census data released Tuesday show Detroit's population has plunged 25% since 2000 to just 713,777 souls — the same as 100 years ago, before the auto industry's heyday. As recently as the 1970s, Detroit had 1.8 million people.

What's happening is no secret: Detroiters are fleeing an economic disaster, the irreversible decline of the Big Three automakers.

In his now-famous Super Bowl commercial for Chrysler, rapper Eminem drives up to a theater in a sleek new 200 model and says, "This is the Motor City. And this is what we do." But, sadly, that's no longer the case. Detroit's decline has been shocking.

Sure, a lot of the blame goes to a generation of bad management. But the main reason for Detroit's decline is the greed of the industry's main union, the UAW, which priced the Big Three out of the market.

As recently as 2008, GM, Ford and Chrysler paid their employees on average more than $73 an hour in total compensation. The 12 foreign transplants, operating in nonunion states mostly in the South and Midwest, averaged about $42 an hour.

(Excerpt) Read more at investors.com ...


TOPICS: Culture/Society
KEYWORDS: labor; unions

1 posted on 03/23/2011 6:27:06 PM PDT by Kaslin
[ Post Reply | Private Reply | View Replies]

To: Kaslin

leftist policies


2 posted on 03/23/2011 6:29:44 PM PDT by GeronL (The Right to Life came before the Right to Happiness)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin
1) UNIONS!...
2) Democrats...
3) Liberals..
3 posted on 03/23/2011 6:31:23 PM PDT by hosepipe (This propaganda has been edited to include some fully orbed hyperbole....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Unions didn’t ruin Detroit, Coleman Young did.


4 posted on 03/23/2011 6:33:08 PM PDT by jeffc (Prayer. It's freedom of speech.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

bump


5 posted on 03/23/2011 6:35:01 PM PDT by BunnySlippers (I love BULL MARKETS . . .)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

The liberals have controlled DEEEETROIT since 1961.

Want to know how many have been living off the dole in Detroit? Take a look at the population minus maybe a hundred gand..


6 posted on 03/23/2011 6:35:13 PM PDT by crz
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

I’ll disagree. The auto unions have not done the city any favor, but it is not the root cause for the demise of the city. That would be liberalism, or more specifically forsaking conservatism. The citizens of Detroit became addicted to other people’s money. When they began forcing their neighbors to pay for the benefits they wanted to enjoy, the die had been cast.


7 posted on 03/23/2011 6:39:15 PM PDT by ALPAPilot
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin
They left may claim they don't know who destroyed Detroit but remember this

One cannot spell "unaware" without "UAW"

8 posted on 03/23/2011 6:39:21 PM PDT by muir_redwoods (Obama. Chauncey Gardiner without the homburg.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Duh...Democrats?


9 posted on 03/23/2011 6:39:49 PM PDT by mort56
[ Post Reply | Private Reply | To 1 | View Replies]

To: jeffc
Thanks. Coleman also received a regular stipend directly from the Politboro in Moscow.

Check the $73.00 per hour ref above ~ it's just like no one here had ever discussed it.

That wasn't $73 per hour PAY but $73 per hour COST. It cost GM $73 per production line worker hour but the workers on the line weren't getting that. Most of the money was going to support costs, which included engineers, designers, management, and retirement plans for people already retired; medical plans for retirees,retiree dependents, etc., paying coupons on bonds and so forth.

The big difference between the non-union plants in the Souf' and the UAW plants generally in the North was the fact the newer non-union plants simply did not have a large group of retirees who continued to cost the company a fortune long after they were no longer productive.

BTW, UAW and management agreed to deals both sides recognized were not economically sustainable.

10 posted on 03/23/2011 6:45:36 PM PDT by muawiyah (Make America Safe For Amercans)
[ Post Reply | Private Reply | To 4 | View Replies]

To: hosepipe

Three different words, all for the same thing.


11 posted on 03/23/2011 6:46:41 PM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Kaslin

Environmentalists and Unions killed Detroit.

The Detroit River was what gave Detroit the competitive advantage in building cars, but the enviro whackos in the 70s imposed strict restrictions on dumping into the river. So the one thing that allowed Detroit to be “The Motor City” in the first place was gone.


12 posted on 03/23/2011 6:47:55 PM PDT by dfwgator
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

****Detroiters are fleeing an economic disaster,****

Chief Pontiac and his Ottowa warriors will be greatly pleased. Only 250 years too late.


13 posted on 03/23/2011 6:53:18 PM PDT by Ruy Dias de Bivar (Visit the TOMMY FRANKS MILITARY MUSEUM in HOBART, OK. I did, well worth it!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

http://www.youtube.com/watch?v=T6WKMNmFsxM&feature=related

Enjoy. BTW, my sister in law used to live at about 28 mile road. She moved a few miles up further a couple years ago.

AND the video just about captures it. Except it does not capture the empty houses in the burbs.


14 posted on 03/23/2011 6:54:37 PM PDT by crz
[ Post Reply | Private Reply | To 1 | View Replies]

To: muawiyah

> Most of the money was going to support costs, which included engineers, designers, management, and retirement plans for people already retired; medical plans for retirees,retiree dependents, etc., paying coupons on bonds and so forth.

Everywhere has these costs, not just Detroit:
engineers, designers, management,

That leaves:
retirement plans for people already retired; medical plans for retirees,retiree dependents, etc.
AKA, exactly the problem.

As far as:
BTW, UAW and management agreed to deals both sides recognized were not economically sustainable.

Management did that because it had no choice at all.
The unions simply shut the company down so the management kicked the can down the road.

Where I come from they call that Rape & Blackmail, not mutual agreements reached at arms length.


15 posted on 03/23/2011 6:55:15 PM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
[ Post Reply | Private Reply | To 10 | View Replies]

To: GeronL

I agree, leftist policies.

A big one rarely mentioned is the CAFE standard.

Congress could eliminate this with the stroke of a pen and help the Big Three immeasurably.

Let other makers produce small cars and let the Big Three concentrate on luxury, power, and trucks.

If people want a gas-sipper it will be available. The CAFE standards cause the Big Three to sell small cars at a loss just to earn the right to sell some bigger ones at a profit. This benefits no one, really.


16 posted on 03/23/2011 6:58:16 PM PDT by rogue yam
[ Post Reply | Private Reply | To 2 | View Replies]

To: bill1952
Management people are supposed to be smart. Obviously the Big Three were overrun with NOT SMART type managers ~ maybe a few too many guys from Marketing took over the companies.

So, bill1952 are you the third guy on FR to ever work in a UAW plant?

17 posted on 03/23/2011 7:08:54 PM PDT by muawiyah (Make America Safe For Amercans)
[ Post Reply | Private Reply | To 15 | View Replies]

To: Kaslin

Detroit’s #1 problem is that Michigan is not a Right-To-Work state. Unlike those sorry souls in Detroit, auto workers and auto manufacturers in the South are doing just fine, thanks! The Right To Work states will rise again. Oooops, I should say, have risen again.

There is a reason why rust belt blue states are rust belt blue states - forced unionism. Like, duh-uh!

Why is this so hard to figure out?

Check out the states that have gained in Redistricting - Right To Work states. Surprise, surprise, surprise!


18 posted on 03/23/2011 7:12:48 PM PDT by lowtaxsmallgov (This Administration has absolutely no idea how to grow an economy)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

The American diplomats in Ghent in 1814 blew it. The British captured Detroit in the War of 1812. The diplomats could have insisted that they keep it.


19 posted on 03/23/2011 7:13:24 PM PDT by Verginius Rufus
[ Post Reply | Private Reply | To 1 | View Replies]

To: jeffc
Unions didn’t ruin Detroit, Coleman Young did.

You raise an excellent point. Young certainly played a larger role than he is credited with, that's for sure. But don't forget about Kwami Kilpatrick and a couple of other mayors in between.

20 posted on 03/23/2011 7:28:59 PM PDT by mlocher (Is it time to cash in before I am taxed out?)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Kaslin

Here is what killed Detroit!

http://www.youtube.com/watch?v=1hhJ_49leBw


21 posted on 03/23/2011 7:47:05 PM PDT by Cheetahcat ( November 4 2008 ,A date which will live in Infamy.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Back in 1920 when Detroit had a similar sized population, the population voted 220,000 to 50,000 in favor of Republican Presidential Candidate Harding.


22 posted on 03/23/2011 8:08:52 PM PDT by JerseyHighlander
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ruy Dias de Bivar

Bid4Assets have many $1 houses for sale....mostly in Detroit.


23 posted on 03/23/2011 8:16:56 PM PDT by Kackikat
[ Post Reply | Private Reply | To 13 | View Replies]

To: crz
You nailed it. The decline has been going on for a long time.
Detroit received widespread acclaim for its leadership in the program, which attempted to turn a nine-square-mile section of the city (with 134,000 inhabitants) into a "model city." More than $400 million was spent trying to turn inner cities into shining new monuments to government planning. In short, the feds and Democratic city mayors were soon telling people where to live, what to build, and what businesses to open or close. In return, the people received cash, training, education, and health care.

The Model Cities program was a disaster for Detroit. But it did accomplish its real goal: The creation of a state-supported, Democratic political power base. The program also resulted in much higher taxes – which were easy to pitch to poor voters who didn't have to pay them. (Mayor) Cavanagh pushed a new income tax through the state legislature and a "commuter tax" on city workers.

Unfortunately, as with all socialist programs, lots of folks simply don't like being told what to do. Lots of folks don't like being plundered by the government. They don't like losing their jobs because of their race.

In Detroit, they didn't like paying new, large taxes to fund a largely black and Democratic political hegemony. And so, in 1966, more than 22,000 middle- and upper-class residents moved out of the city.

---snip---

And so, you might rightfully ask... after five years of centralized planning, higher taxes, and a fleeing population, what did the government decide to do with its grand experiment, its "Model City"? You'll never guess....

Seeing it had accomplished nothing but failure, the government endeavored to do still more. The Model City program was expanded and enlarged by 1974's Community Development Block Grant Program. Here again, politicians would decide which groups (and even individuals) would receive state funds for various "renewal" schemes. Later, Big Business was brought into the fold. In exchange for various concessions, the Big Three automakers "gave" $488 million to the city for use in still more redevelopment schemes in the mid-1990s.

What happened? Even with all of their power and all of the money, centralized planners couldn't succeed with any of their plans. Nearly all of the upper and middle class left Detroit. The poor fled, too. The Model City area lost 63% of its population and 45% of its housing units from the inception of the program through 1990.

Lot's more at the source.
24 posted on 03/23/2011 8:23:32 PM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
[ Post Reply | Private Reply | To 6 | View Replies]

To: muawiyah

Yes and no, that number is not overhead. Rather it is the cost of pay, insurance, vacation, pension and whatever else Detroit paid that was part of a worker’s package.


25 posted on 03/23/2011 8:27:48 PM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Straight Vermonter
There is a large cost for a corporation to make sure that they are following the rules of their union contract. Think of how much effort companies put into their tax compliance and environmental compliance. Now look at the size of the union contract the auto makers have to comply with:


26 posted on 03/23/2011 8:31:33 PM PDT by Straight Vermonter (Posting from deep behind the Maple Curtain)
[ Post Reply | Private Reply | To 25 | View Replies]

To: Kaslin

The same ones that killed Cleveland.


27 posted on 03/23/2011 9:49:54 PM PDT by peteyd (A dog may bite you in the ass,but it will never stab you in the back.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin

Any guesses as to which sports team will depart. My bet is the Detroit Lions get out of town first.


28 posted on 03/23/2011 9:50:09 PM PDT by Harley (Will Rogers never met Harry Reid.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaslin
In the 1960’s when Japanese cars first started to make their appearance in the U.S. Detroit laughed at the junk and said the tiny market share was nothing to worry about, afterall Detroit built what America wanted and sold all it built.
The Japanese studied the American market, slowly improved their quality and expanded market share,
Detroit responded by arrogantly saying they knew America didn't want and wouldn't buy small cars so let the Japanese have that niche market.
The rest is history, the Japanese continually improved their quality, modernized their plants and production methods and moved into other auto markets.

Detroit responded with the Corvair, the Vega, the Pinto and various pieces of Mopar junk. And it was too late.
Detroit caved to the unions to maintain peace and tried to play catch-up in old factories.

The fate of Detroit as The Motor City was sealed.

29 posted on 03/24/2011 12:32:02 AM PDT by count-your-change (You don't have be brilliant, not being stupid is enough.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Straight Vermonter
If your objective is to BUILD CARS you will want to measure production line workhours in terms of the cost to achieve one of those hours.

That's all GM claimed the $73 number was about.

If your objective is to figure out if your company has enough lawyers (as employees or on retainers) you will take a look at their won/loss record, and total net cost per suit.

After all, you can always throw another lawyer on the case and increase your probability of winning ~ but all that happens when you add another production line worker is you get an increase in costs.

It's how you line up the production line people and their machines that improves your bottom line.

At GM all those lawyers and marketing people were, it turns out, overhead and the average cost per production line workhour could have been lowered by firing the lawyers and marketers.

30 posted on 03/24/2011 4:58:58 AM PDT by muawiyah (Make America Safe For Amercans)
[ Post Reply | Private Reply | To 25 | View Replies]

To: mlocher

Detroit kept electing people who were experts at skim. Their only interest was getting more for themselves. When your politicians “make it rain” at a strip club, you have a problem.


31 posted on 03/24/2011 5:02:32 AM PDT by AppyPappy (If you aren't part of the solution, there is good money to be made prolonging the problem.)
[ Post Reply | Private Reply | To 20 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson