Also in this playlist...
This transcript is automatically generated
Detroit was once -- most prosperous city in America where the money go.
We have a fall of the Big Three didn't help but politicians make it worse they squandered money Detroit's mayor's launch big projects like the up people over.
Which turns out to only move people in one direction and not as many as they thought.
Then there's the 350.
Million dollar Renaissance Center and a very expensive jail.
And when the money ran out Detroit started to decay politician said things like.
Yes we shall go forward.
Didn't talk so much and become the great city -- the -- Twenty years later -- young was still in office making similar promises it hey aren't leaving and it worked out.
And -- got them back.
And when people criticize him and his fellow politicians he called the critics racist who -- kind of report.
-- -- -- -- -- That generally shuts people up and a later mayor and his cronies found knew what a salute the city they -- City Hall into a den of bribes and kickbacks.
Making themselves rich what is the issue have a violated any rules now that you come up with no.
Actually a jury eventually came up with yes convicted him of extortion he'll be sentenced this fall.
Now there are crooked politicians and politicians who over -- everywhere but why is Detroit in the worst -- Let's ask -- -- Leo the reason foundation she lives in Detroit Darcy Olsen who runs the Goldwater institute a think tank that studies local -- -- Shake -- what happened to your -- Whether Detroit stunned into -- one party and Donald put fifteen eagle fifteen years it's been -- by one by.
That you know usually you get that it even by dean checking those stupid guardian the stupid body checking that even a party in Detroit's -- there was no such -- And you've got out of control spending and good -- and waste.
But I assume they're not don't they they know that someday -- has to pay for this.
Yes the -- -- who they are just very treaty.
Nobody is thinking about Google don't -- all -- their thinking about is getting the elected in four years.
And which constituency they need to buy in -- do you do that.
And in Detroit eight as well and of Michigan's.
Unions and especially public unions and extremely strong.
-- -- study this around the country what.
Do cities do it's better.
Well it's so interesting to Trace to be called the that -- of the midwest.
And of course today 20000 dollars debt per person.
But it's a tale of two America is because you can look to other cities that are operating in the black with cash on hand award winning public parks.
All kinds of things what's the difference.
Well number one let's go look at sandy spring Georgia they're called the city that privatize nearly everything.
Garbage sewer -- counting back office operations even the courts.
They cut the high cost of government in half and any city in America could benefit from just that one provision.
They have five government employees.
But things still run -- -- Well when -- I was talking about the strength of the unions that's something else that Sandy Springs has right.
By privatizing all of these services you don't have the unions had the inside -- only have five government employees there.
And the -- is it's smaller than Detroit but still seventh as big -- and -- -- say it's a 100000 people in fact there have been five more cities to come along and copy.
This Sandy Springs model.
And well Detroit is still what debt per person you could say 28000.
Dollars per person.
No debt operating totally in the black their charter requires them to have a pat cash operating reserve and that's how they pay for a lot of capital projects.
Not -- -- -- your town gotten worse trouble because your last mayor.
It was taken money for himself killed Patrick Q he used city funds to fund -- gets 54 trips limo rentals nightclub charges.
Hired and 29 of its closest friends and family.
For city positions people didn't notice sunscreen.
Well that does not even the worst ethic the worst of it was that he was act should -- Using city he was actually receiving kickbacks for funds off his choice to give city contracts -- -- received it.
Cronies it used to because the friends and family plan in Detroit still.
-- you'd -- accused of block of very good game.
He used to talk about bringing all kinds of -- development of Detroit you know in new stadium's new casinos new events.
And at the same time as he was talking up his big game he was quietly siphoning.
City coffers of money.
Which is one reason why Detroit is he left Detroit in the worst financial mess than he -- Part crooks are crooks but even.
-- cities that's.
I'm going to confront.
What are your City Council members later on this show I imagine we'll tell me look where wanna make it easier for business we're dividend tax breaks and they have all these.
Deals have if you call -- and what's wrong with that.
-- at what they're doing is they're giving -- via a tax breaks.
Do businesses that they have hind feet.
And these are you know this is just kind of the mean to how to deal politicians -- -- like big glamorous things and at the saint -- Detroit.
Is subsidizing does these big businesses it is going off the noncompliance.
List are mom and pop stores that it's as an -- -- -- in the.
They have something called operation compliance they they brag we're gonna shut down twenty unlicensed businesses every week that's right what if -- on license maybe they should shut him down we'll head.
You know these unlicensed businesses are providing vital services today residents.
They had these are businesses that are you know sending.
-- a cheap tires they have secondhand appliances you know this is city understand that's losing.
About 15100 people every day its population has dropped from two million to -- -- 700000 not this this town needs businesses.
He needs of residents and taxing them and they did anything -- going to dry you've.
A more -- and that would.
Darcy you list three things that all cities to do you mentioned privatization.
-- -- the other two.
Which is a big one.
-- in Gaithersburg Maryland has zero debt they've had zero -- for forty years everything they do all of these contracts that it took investigative journalist I'm covering Detroit.
All of those contracts in Gaithersburg our online -- Accounting budget post all on the web so it helps so much a little bit of sunshine lets people know what's going on creates a culture of trust.
And that's important for getting people to want to invest -- come back into a city.
And before a city can get new debt.
Goldwater says voters should have to approve it -- have to go before the voters and quite often because the voters are paying the taxes and they say now so that's a great check on curbing these huge liabilities.
But Detroit isn't the worst shape.
-- you know Detroit even -- is the upended the -- -- its residents I think it might be the only city that does that.
It has -- property taxes it does business taxes and it has utility taxes.
Thank you cherica thing.
Filter by section