The attached video (“Detroit in Ruins”) offers a number of opinions as to why the city of Detroit is a largely wasteland. This ruin is particularly poignant since “in the day,” Detroit had the highest median income in the USA. Today, Detroit’s median income is #68.
The video blames Detroit’s liberal government, teachers’ union, and labor unions as the principle causes for the city’s collapse.
All of those accusation may be true, but I want to stress that Detroit has collapsed because: 1) INDUSTRY is the primary source of most urban wealth; and 2) the primary Detroit industry (auto manufacturing) has effectively fled Detroit.
Point: If you lose your industrial base, you’re headed for poverty and social collapse.
Detroit’s collapse offers a tangible evidence of what’s likely to happen to the entire USA thanks to “global free trade”.
Under “global free trade,” 1) our tariffs have been lowered or eliminated; 2) foreign goods produced with cheap foreign labor can be sold freely within the USA; 3) US industrial corporations cannot compete and remain profitable when forced to pay high American labor prices while competing against cheap foreign labor; 4) US industrial corporations are being effectively forced by low tariffs and “global free trade” to relocate to foreign countries with cheap labor; and 5) the US has been increasingly “de-industrialized” (just like Detroit).
My conclusion, prediction and warning to you is that if you allow global free trade (low tariffs) to continue, the entire nation of The United States of America will tend to degrade to an economic condition similar to that of Detroit’s.
Those who favor “global free trade” will argue that the loss of industrial jobs can be compensated for with “service jobs”; that those “service jobs” will be sufficient to maintain the nation’s economic strength. But, if that’s true, why haven’t “service jobs” saved Detroit?
Those who favor “global free trade” will argue that those who lose their industrial jobs to foreign competition can be re-educated to take on the new high-tech jobs in the increasingly-efficient “service” economy. Really? Well, if so, when do they plan to start reeducating the people of Detroit?
Detroit is evidence that the rationalizations for global free trade do not always work, and may not work at all.
It’s possible the the primary reasons for Detroit’s collapse were its liberal politicians and greedy unions. But those are local problems subject to local solutions. Liberal politicians and greedy unions can be reined in, any time the people of Detroit make up their minds to get up off the couch and make something happen.
But global free trade is not a ‘local” problem; it’s not amenable to “local” solution. When industry flees Detroit for Beijing, that industry is gone–perhaps forever. Without an industrial base, Detroit will not revive any time soon.
Not all cities have an industrial base. Some can survive very nicely as “service economies”–but even those local service economies are derived from, based upon, and feed off other “industrial economies”. If your industrial base declines, the derivative service economies will soon follow suit.
For the past two centuries, the economic foundation for most big cities and the USA in general has been industry. There is no reason nor evidence to support the theory that, under global free trade, we can safely ship our industries and our industrial jobs overseas, and still maintain our standard of living.
Global free trade will push the USA into higher unemployment, lower wages, lower standards of living, and the kind of social collapse, despair and immorality that are prevalent in much of Detroit–and other 3rd world nations. Anyone who tells you otherwise is a fool or a treasonous whore who is knowingly working to destroy the several United States.
Most of the people who advocate “global free trade” are in our government. I leave it to you to decide if they are predominately fools or treasonous whores–or maybe both.
video “Detroit In Ruins”: 00:13:04 http://www.youtube.com/watch?v=1hhJ_49leBw