April 3, 2015

Grand Disaster

What kind of life do Detroiters have in the afterlife of bankruptcy? Those working for the citizens of Detroit focused on the short term objective of getting the city out of chapter 9, instead of focusing on using the legal action of restructuring debt in a manner that gives the city the best chance to prosper and flourish after completing the legal action.

During the trial it was mentioned that in order for the city to have a solid future it must grow its middle class and thus its tax base. This is not going to happen without a good public school system.

Detroit was in a better position to do this than other cities facing similar problems because of the billions of dollars of assets stored at the DIA. The Grand Bargain tossed  this opportunity away forever. The the art could have been sold as needed and invested in creating the best public school system in the state. This, along with improved public safety will grow Detroit's middle class. For most parents there is nothing more important than helping their children to have a better future. It is recognized that providing a superior education is one of the key factors that will make this happen.

Allocating a significant portion of the proceeds from the sale of art to education would have allowed DPS to reduce class sizes to levels competing with some of the best private schools in southeast Michigan. An increase in the middle class would have resulted in higher property values resulting in a higher tax base resulting in better services offered by the city.

Detroit should not have given away this opportunity by surrendering ownership of its art under the Grand Bargain. The Grand Bargain is grand for the DIA and not the citizens of Detroit. More

1 comment:

  1. Yeah, we have gone away from the likes of Milton Friedman. The Koch Brothers have changed the definition of free markets; so there goes equity.