Motown to NOTOWN -Detroit GOES BANKRUPT! Home of the usa auto industry, now bankrupt

[markabilly]

What's the big deal? It is only $18 billion in debt......why do I keep hearing the song, it is the beginning of the end as we know it ??.

The city's murder rate is at its highest in nearly 40 years; only a third of its ambulances were in service in the first quarter of 2013; and its nearly 78,000 abandoned buildings create "additional public safety problems and reduces the quality of life in the city," the governor noted in his letter.

Detroit was once synonymous with U.S. manufacturing prowess. Its automotive giants switched production to planes, tanks and munitions during World War Two, earning the city the nickname of the "Arsenal of Democracy."
Now the city's name has become synonymous with decline, decay and crime. Detroit has seen its population fall to 700,000 from a peak of 1.8 million people in 1950. The city's government has been beset by corruption cases over the years. Waning investment in street lights and emergency services has left it struggling to police the streets.

Detroit bankruptcy first step in 'restoring the city'

[markabilly]

What were you muttering, roamy??????

I think the reactions of the George Zimmerman verdict have shown us once again what is leading to the decline of this country and why it is more important than ever to be self-reliant and to prepare for uncertain times.........But again, my big problem is the lack of personal responsibility in this country. It’s the notion that we can do whatever we want without consequences, and that someone or something (such as the government) will bail us out or take care of us. .....

?http://www.motorsportforums.com/chit...ml#post1147111

[Starter]

Absolutely amazing, boggles the mind. That it took this long for Detroit to get there. Forty years of incompetent and/or corrupt mayors and administrations will do that for you. Not to mention unions which made hogs at the trough look dainty.

[anthonyvop]

[Rollo]

Forgive my ignorance but wasn't Detroit the home of several auto makers?

When companies like General Motors choose to build cars like the Cruze and Captiva in places like Hanoi, Gunsan and Saint Petersburg, where they can pay workers less than $4000 a year, what sort of tax base does the city have left?

If the City of Detroit has gone bankrupt, then surely that's just one of the consequences of capitalism. The people who live could just as easily move to Vietnam, China or Russia because GM and Ford obviously made the economic choice to do so.

Absolutely amazing, boggles the mind. That it took this long for Detroit to get there. Forty years of incompetent and/or corrupt mayors and administrations will do that for you. Not to mention unions which made hogs at the trough look dainty.

To be fair, there is no point in manufacturing anything in the United States, not when people in other countries are prepared to work for wages which are even less than the cost of rent in American cities.

[anthonyvop]

Forgive my ignorance but wasn't Detroit the home of several auto makers?

When companies like General Motors choose to build cars like the Cruze and Captiva in places like Hanoi, Gunsan and Saint Petersburg, where they can pay workers less than $4000 a year, what sort of tax base does the city have left?

If the City of Detroit has gone bankrupt, then surely that's just one of the consequences of capitalism. The people who live could just as easily move to Vietnam, China or Russia because GM and Ford obviously made the economic choice to do so.



To be fair, there is no point in manufacturing anything in the United States, not when people in other countries are prepared to work for wages which are even less than the cost of rent in American cities.

1st off you have no grasp of how capitalism works. The reasons for the Auto Companies expanding overseas are many but one of them is High Taxes and repressive regulations. Something that is 100% fault of the Left. The Auto companies share in the blame as they catered to the liberals to curry favor as they were caving to the UAW.

Funny how you blame Detroit's downfall on the US Automakers for moving offshore for cheaper labor and yet Companies like Honda, Toyota, Mazda, Nissan, Volkswagen, BMW & Mercedes have all open factories in the USA

2nd The biggest debt held by Detroit and the main cause of their bankruptcy was their bloated pensions. They spend decades caving to the Unions for votes. The Liberal politicians would just spend and spend and just pass the buck to later administrations until..........Now.

FYI there hasn't been a Republican Mayor of Detroit since the early 60 and a fiscal conservative since the 1800's Their last mayor, Kwame Kilpatrick is actually in federal prison for racketeering, conspiracy, extortion and the filing of false tax returns.

[Rollo]

1st off you have no grasp of how capitalism works. The reasons for the Auto Companies expanding overseas are many but one of them is High Taxes and repressive regulations. Something that is 100% fault of the Left. The Auto companies share in the blame as they catered to the liberals to curry favor as they were caving to the UAW.

High Taxes? What is ZERO too high now?

The Corporate tax take in 2011 amounted to just 2.2% of GDP. What the heck sort of world are you living in? It's certainly not one based on facts. CBO | Historical Budget Data

Your assertion is even more hillarious considering that GM was at the top of the list of companies that paid no tax at all:
10 U.S. companies paying the least


Study: Many corporations pay no income taxes - Nov. 3, 2011
The study looked at 280 companies in the Fortune 500 that were profitable for all three years between 2008 and 2010.
The results: 111 companies paid effective tax rates of less than 17.5% over the three-year period; 98 paid a rate between 17.5% and 30%; and 71 paid more than 30%.
The average rate? 18.5%.
Some companies paid zero. And 30 actually owed less than nothing in income taxes over the three years.

My personal effective average rate of taxation last year was 29.3%, so please forgive me if I think that your statement is based in complete ignorance of the real world.

FYI there hasn't been a Republican Mayor of Detroit

FYI I can't honestly see any difference between the two political parties in the United States; it's all jingoistic claptrap. Both parties live in the pockets of corporations.

[Starter]

High Taxes? What is ZERO too high now?

The Corporate tax take in 2011 amounted to just 2.2% of GDP. What the heck sort of world are you living in? It's certainly not one based on facts. CBO | Historical Budget Data

Your assertion is even more hillarious considering that GM was at the top of the list of companies that paid no tax at all:
10 U.S. companies paying the least

The sad fact is that many US companies have, over the years, purchased Senators and Congressmen to produce a tax code that is Byzantine. GM also was aided by a massive government bailout - it would be surprising indeed had they paid any taxes recently. Let's not forget though that, for the purposes of this thread, we're talking about Detroit and not the US in general.

Study: Many corporations pay no income taxes - Nov. 3, 2011

The study looked at 280 companies in the Fortune 500 that were profitable for all three years between 2008 and 2010.
The results: 111 companies paid effective tax rates of less than 17.5% over the three-year period; 98 paid a rate between 17.5% and 30%; and 71 paid more than 30%.
The average rate? 18.5%.
Some companies paid zero. And 30 actually owed less than nothing in income taxes over the three years.

Our wonderful tax code again. However, a 17% or so rate would be a very reasonable figure were is applied fairly.

My personal effective average rate of taxation last year was 29.3%, so please forgive me if I think that your statement is based in complete ignorance of the real world.

You live where?

FYI I can't honestly see any difference between the two political parties in the United States; it's all jingoistic claptrap. Both parties live in the pockets of corporations.

In many, but not all, ways that is an accurate description.

[Starter]

Funny how you blame Detroit's downfall on the US Automakers for moving offshore for cheaper labor and yet Companies like Honda, Toyota, Mazda, Nissan, Volkswagen, BMW & Mercedes have all open factories in the USA

2nd The biggest debt held by Detroit and the main cause of their bankruptcy was their bloated pensions. They spend decades caving to the Unions for votes. The Liberal politicians would just spend and spend and just pass the buck to later administrations until..........Now.

Important to note here that most of those plants are in right to work states - for those of you not from the US, that means that unions can not force workers to join the unions or keep them from being hired if they are not union members. The workers in those plants make a decent living for where they live, but are paid far less than the Detroit UAW members (by "paid" I mean as a total of wages, benefits and retirement). Basically the unions, especially the UAW, were complicit in killing the proverbial goose. Much like the steelworkers did to Pittsburg.

[Rudy Tamasz]

If the City of Detroit has gone bankrupt, then surely that's just one of the consequences of capitalism.

You're absolutely right. That's capitalism. You screw up, you fail. Would you bother to explain why other cities managed to survive? Do they have socialist mayors/councils, or what?