Assuming Detroit emerges from its bankruptcy in a fairly stable position, it poses the best opportunity America has had in decades to illustrate our resilience, tenacity and American ingenuity. Bloomberg News made a point that many pundits have ignored in recent days: Even if Detroit successfully sets its fiscal house in order. . . What exactly is left upon which we can build? The city has the highest crime rate in the nation, deteriorating infrastructure, and some of the highest tax rates in all of Michigan. However, Detroit has an opportunity. It is up to the council, and people, to seize that opportunity and make the most of it.
While the bankruptcy will, no doubt, present challenges. . . The whole point of bankruptcy is to present to the indebted an opportunity at redemption. Under what possible circumstances could Detroit recover from a tale of American failure to the legend of American redemption? It’s simple. But it won’t occur with the current mindset of Democrat dominance.
Detroit has before it an opportunity to seize the mantle of American entrepreneurship. After debts are consolidated, and obligations reorganized, the city will have an opportunity to remake itself in a successful image. Currently the city has oppressive tax rates, and is burdened with the typical regulatory red tape inherent in large metropolitan areas. By lowering taxes, reducing regulation, and welcoming businesses of any stripe, the city could quickly become a tale of American excellence – rather than a tale of the welfare-state’s incompetence.
Detroit is rife with unemployed, low skill, labor. The city has some of the lowest priced real-estate in the nation. Furthermore, they harbor a renowned legacy of manufacturing, infrastructure, and name recognition. Circumstances are borderline attractive for would-be entreprueners. However, the crime rate, lack of public services, and general deterioration of the city are an instant turnoff for any would-be billion dollar company looking for some new headquarters.
But, what if the city became America’s very own tax haven? If the city was to set, as its target, the goal of beoming the “easiest place in America” to begin a new business. . . How quickly would the area recoup? If American companies could carry their headquarters to Detroit, and pay some of the lowest taxes in the nation while simultaneously facing some of the most business-friendly regulations, the city would see a resurgence that would rival the boom of the 1950’s automotive era.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 23rd, 2014 | John Ransom