2013年7月24日星期三

Detroit decline highlights political disadvantages, the Obama administration did not play a role


A mess as a complex contradiction in front, the United States political system can not present the line power of "we", takes the Detroit struggle continues to a vicious cycle of blood loss
Recently, once considered the engine of economic development of Detroit, "motor city", apply to the court for bankruptcy protection of local government. Once the United States' fourth-largest city is how to walk step by step to irreparable decline situation?
Transformation and upgrading of industrial, manufacturing, the overall decline, superstition market spontaneous adjustment, employment contradiction is hard to reconcile, racial tension and inequality between the rich and the poor, the most important reason is Detroit, filed for bankruptcy protection, however, America's political system inherent structural defects not escape its responsibility.
Detroit back huge debt burden, with party politics issues associated with the United States. Electoral system in the "money politics" Lord, to win votes, politicians in money "buy tickets" open on one hand, on the other hand a promise and a lot of unsustainable welfare policy, to please voters. Since the "loyalty" is buying, that means welfare policy once it will be difficult to stop, can only increase, not decrease. Year after year accumulation overlay, welfare spending on local fiscal burden.
In the face of rigid welfare spending, the government often choose robbing Peter to pay Paul, cuts to be used for municipal construction and public services, often bear the brunt of the education and infrastructure. In many cases, even if the government financial revenue by raising tax rates for more, in the capital of municipal and public services is still declining. High taxes, decline of municipal and public services, this one plus one minus the nature to a great extent, reduces the attractiveness of the city. Residents and enterprises to "vote with their feet", making the tax and the tax base shrinks, local finance further deterioration, and the persistence of financial crisis is to let local fiscal woes. Detroit has finally fallen into debt deep canyons, cannot extricate oneself.

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