An opinion from Stephen Boyle
Detroit’s government continues to be under pressure by the State of Michigan. A Detroit Financial Review Team was assembled January 2013.
Recollect December 27, 2011 as reported by Fox Business:
Michigan’s governor on Tuesday appointed a team to review Detroit’s finances, a move that could end in a possible state takeover of the city as it struggles with a shrinking auto industry and falling revenues.
This leading paragraph might have some believe the auto industry is heavily influencing Detroit’s financial picture. However three decades of push toward globalization, free trade agreements, and segmentation of labor into multi-tier negotiations have moved the auto industry well outside Detroit. The city has become a hallmark of corporate destitution when you drive past hundreds of abandoned assembly facilities. Today corporations in the city are awarded tax abatement to encourage “job growth”. These abated dollars show up as unfunded services such as lighting, water, transportation, and more. The infrastructure supporting new business is not being funded due to abated taxes.