http://www.nytimes.com/2013/09/23/business/detroit-is-now-a-charity-case-for-carmakers.html?ref=business&_r=0
This article is mainly about the fall of the city of Detroit. Detroit, Michigan used to be considered the Motor City, the capital of automobile production in America, but now it is nothing more than the largest municipal bankruptcy in American history. Its central high rises no longer offer the jobs but instead offer a bird's eye view of the desolation for miles, and suburbs blemished by abandoned houses and empty factories.
Detroit recently received a check for ten million from Ford as aid to help bring back a community center. It seems awfully ironic to me that car markers who once defined the job market for the city are now making charitable efforts for the place. 10 million dollars is hardly anything to call life support for a city where the budget deficit is one million dollars a day, and is merely a 'Band-aid' according to the author of the article.
The problem with Detroit is that for years it has been plagued by corruption in its city government. Fraud, racketeering, extortion, excessive taxes, high crime rates, poor management and poor infrastructure create an unfavorable environment for everyone, especially corporations. According to Thomas J. Sugrue, “Detroit’s fate is the result of decades of job flight.” It is much easier for corporations to either expand or move different aspects of their business elsewhere. In Detroit's case, auto makers have been moving production out of the city and even out of the country for years, because it is easier and cheaper for them elsewhere.
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