grammar stuff Who is to blame for Detroit’s bankruptcy—China? Or robots? When Erica was a young child, she had a hard time coping with the absence of her father. Even as a five-year-old, she would violently act out. Her mother shielded Erica from the knowledge that her dad was in prison, a convicted serial rapist. Eventually, counselors at a specialized after-school program revealed to Erica that her father was behind bars. They did not talk about his crimes, but they helped her make supervised contact. More than 5 million children in the United States have had a parent in prison or jail, according to a 2015 study from the Maryland-based research center Child Trends. Researchers and specialists have understood for some time that a parent’s incarceration can have a severe impact on a child. The trauma of having a parent behind bars “I almost spit on my teacher today,” says Nina, 9, whose father is serving 15 years in prison on drug charges. “We honor that this is their parent, and this is a relationship that is really valuable to them,” says Mullane.
You Don't know Sh** about Detroit's Shinola Luxury goods maker Shinola is marketing upscale watches and bicycles by playing up the brand’s blue-collar roots Perhaps no American city has a better story to tell right now than Detroit. Beginning well before the beleaguered city’s bankruptcy filing in 2013, tons of ink has been spilled about Detroit’s declining population, high unemployment, poverty and high crime rate. There have been photo essays both on its abandoned buildings and on its resilient and resourceful residents. The ongoing tale of this once-mighty city’s comeback attempts makes for compelling content and—as a handful of auto brands and at least one luxury goods maker have found—positions it well to serve as prime marketing fodder. Four-year-old Shinola, which makes retro-inspired luxury watches, bicycles and leather goods, has built its brand around Detroit’s nascent renaissance and the company’s own role in it. Built in Detroit Even the brand’s name has more spunk than a typical luxury-oriented enterprise. A video g.
Shinola has perfect timing in Detroit By Kai Ryssdal January 21, 2016 | 3:48 PM There's a new term out there to describe a recent manufacturing movement in America - "Make-tailers." It's a category of "embedded-in-the-community" companies that produce small-batch, high-quality artisan products. One of the marquee examples of this movement is Shinola. Kartsosis is from Plano, Texas, but he chose Detroit for his new company's headquarters and production facility. Shinola has been divisive amongst Detroiters. But Shinola's growth signals corporate success. Marketplace visited Shinola's headquarters in Detroit where the company also has its leather shop. Produced by Tommy Andres.
Mapping 60 Years of White Flight, Brain Drain and American Migration You can tell a lot about a place by who doesn't want to be there any more. Or, conversely, by who wants to move in. A city that seeps population over time invariably has deeper problems driving its demographic change, like poor school districts that can't keep young families, or weak job prospects for its college grads. A county that attracts new residents, on the other hand -- maybe young people in particular, or retirees -- likely has the right amenities to lure them. Maybe a certain job sector. In this way, we can divine some of the fortunes of different corners of the country simply by watching how Americans move around over the years. Researchers at the University of Wisconsin, Michigan Technological University and the University of New Hampshire have built just such a database dating back to the 1950s. Here is a map of total net migration across the 2000s in the U.S., with orange counties losing the most people and purple counties gaining the most. 1950s 1960s
Rush Limbaugh: Detroit Went Bankrupt Because Blacks Drove Out Whites Economists are attributing Detroit’s recent bankruptcy filing to problems facing the entire Rust Belt region: a shrinking tax base, high health and pension costs, sprawl, and general dysfunction. But on Tuesday, Rush Limbaugh added another cause to the long list of factors that have contributed to the city’s downfall: black people. During an appearance on Fox News’ On The Record with Greta Van Susteren on Tuesday, Limbaugh claimed that “unchecked” Democratic rule “since the last Republican mayor [in] 1957” created a lazy and bloated culture of out-of-control spending and corruption. “You’ve had that — that town has been a petri dish of everything the Democrat Party stands for, everything the Democrat Party loves — massive unions, massive pensions, pay people pensions and health care long after they’ve stopped working,” he said, before arguing that the city’s first black mayor exacerbated the city’s spending and sparked racial riots that chased white people into the suburbs:
Tech and innovation power Detroit's manufacturing revival Similar efforts are under way in Detroit to foster innovation and entrepreneurism. These include the Obama administration's manufacturing innovation institute, called Lightweight Innovations for Tomorrow (LIFT), launched in January, and the philanthropic New Economy Initiative (NEI), an economic development initiative working to build a network of support for entrepreneurs and small businesses. "We don't support entrepreneurs directly, but the ecosystem that does," explained David Egner, executive director of NEI, which has raised $135 million to fund entrepreneurs and programs like LIFT. Egner said that about 20 percent of its recipients are budding manufacturers, making things like heated motorcycle jackets, wooden pallets and carbon dioxide-based coolants for machinery. Meanwhile, Sheppard is proud to be among those working to revive Detroit's manufacturing heritage. —By Bob Woods, special to CNBC.com
Detroit bankruptcy another setback for unions Detroit's historic bankruptcy filing is a major setback for public employee unions that have spent years trying to ward off cuts to the pensions of millions of government workers around the country. If the city's gambit succeeds, it could jeopardize an important bargaining tool for unions, which often have deferred higher wages in favor of more generous pensions and health benefits. It also could embolden other financially troubled cities dealing with pension shortfalls to consider bankruptcy, or at least take a harder line with their unions in negotiating cuts. "This is essentially the union's worst nightmare, said Gary Chaison, professor of industrial relations at Clark University in Worcester, Mass. "It means that the most sacred of sacred things they've negotiated for, the pensions of their retired members, are going to be severely cut." Detroit's bankruptcy filing comes on the heels of some public unions losing most of their collective bargaining rights in Wisconsin.
Detroit’s white population rises Detroit’s white population rose by nearly 8,000 residents last year, the first significant increase since 1950, according to a Detroit News analysis of U.S. Census Bureau data. The data, made public Wednesday, mark the first time census numbers have validated the perception that whites are returning to a city that is overwhelmingly black and one where the overall population continues to shrink. Many local leaders contend halting Detroit’s population loss is crucial, and the new census data shows that policies to lure people back to the city may be helping stem the city’s decline. “It verifies the energy you see in so many parts of Detroit and it’s great to hear,” said Kevin Boyle, a Pulitzer Prize-winning author and historian who studies the intersection of class, race, and politics in 20th-century America. “The last thing I want to do is dampen the good news, but the problem is Detroit is still the poorest city in the U.S. “I think it’s a trend. “It’s not creating an even playing field.”
Auto Bailout or UAW Bailout? Taxpayer Losses Came from Subsidizing Union Compensation June 13, 2012 | Backgrounder on Economy By James Sherk and Todd Zywicki Key Points Bankruptcy law calls for similarly situated creditors to receive equal treatment. Abstract: The U.S. government will lose about $23 billion on the 2008-2009 bailout of General Motors and Chrysler. The government bailout of General Motors (GM) and Chrysler between 2008 and 2009 will cost taxpayers approximately $23 billion. Legally, the UAW’s claims had the same status as those of other unsecured creditors, but the UAW recovered a much greater proportion of the debts that General Motors and Chrysler owed the union. UAW members at General Motors and Chrysler are among the most highly paid workers in America. Detroit Bankruptcy General Motors, Chrysler, and Ford were in serious trouble well before the recession started. GM and Chrysler instead asked Washington for a taxpayer bailout. A substantial amount of these funds will never be repaid. Defending the Bailout Bankruptcy Liabilities Lost Savings. Conclusion
Ford to invest $1.6 billion for new plant in Mexico Ford sparked outrage from the UAW and Republican front-runner Donald Trump on Tuesday, uniting two unlikely foes, after the automaker said it would invest $1.6 billion to build a new plant in Mexico and create 2,800 jobs. The Dearborn automaker has been among Trump's targets for months because of the widely expected investment south of the border. The UAW, which reached a new four-year contract with the automaker last November, also has long been critical of automakers increasingly building new plants in Mexico. The union and Trump said Tuesday that America's trade deals lead to job losses. "These ridiculous, job-crushing transactions will not happen when I am president," Trump said in a statement issued by his campaign. "NAFTA has incentivized plants to move to Mexico, closing factories across the United States. Trump has previously said if elected president he would threaten the company and any other automaker with a 35% tariff on products or parts imported into the U.S.
Detroit Rising: Life after bankruptcy One year after a federal judge approves Detroit's bankruptcy exit plan, progress has been made while looming challenges remain, especially city pensions The City of Detroit has more than enough cash to pay its daily bills. Thousands of busted streetlights have been replaced. City retirees still receive pension checks, and valuable paintings remain ensconced in the gilded halls of the Detroit Institute of Arts. That's the good news. Among the greatest concerns: a multibillion-dollar pension bill that starts coming due in less than a decade. The city is on the hook to make a balloon pension payment estimated at more than $100 million in 2024 alone. So far, the early returns for the investments since the bankruptcy are falling short. It was officially known as a plan of adjustment. Some, especially retirees, remain embittered by pension cutbacks. "I think the early indicators exceeded our expectations," former Detroit emergency manager Kevyn Orr said in an interview late last month. Peter J.