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Liberal Economist: 'Mostly White' Citizens Deserves the Blame For Detroit's Problems
Michigan Capitol Confidential ^ | 9/24/2014 | Tom Gantert

Posted on 09/26/2014 10:24:31 AM PDT by MichCapCon

In a recent Detroit Free Press op-ed, University of California-Berkeley Professor Robert Reich places the blame for the city of Detroit’s bankruptcy on the “mostly white” residents of Oakland County.

“But Detroit is really a model for how wealthier and whiter Americans escape the costs of public goods they would otherwise share with poorer and darker Americans,” Reich wrote. “ … But one thing is for certain: A very large and prosperous group close by won’t sacrifice a cent — the mostly white citizens of neighboring Oakland County.”

The reaction of one Oakland County official was that Reich, a former U.S. Secretary of Labor, didn’t know much about his chosen topic.

“That piece is clearly misinformed,” said Robert Daddow, Oakland County deputy county executive. “He doesn’t understand what he is talking about.”

By all accounts, the state and Oakland County are major stakeholders in Detroit. Here’s some things Reich overlooked about how county and state taxpayers help fund Detroit.

No. 1: People who work in the city but live elsewhere — such as Oakland County — pay a city income tax. That income tax for non-residents is 1.2 percent, compared to the 2.4 percent that residents of Detroit pay. The city income tax brings in $248 million and accounts for 19.2 percent of the city’s revenue.

No. 2: Detroit has a special deal with casino revenues. There are 22 other cities in Michigan that have casinos operating within their boundaries, but Detroit is the only city that can collect a “wagering tax” from casinos. That amounted to $181.4 million in 2012, or 13.5 percent of the city's revenue. Many of those bets, undoubtedly, were placed by Oakland County residents.

No. 3: Detroit is budgeted to receive $140.5 million in money taken from sales tax revenue that is collected from residents all across the state — including Oakland County — in the form of revenue sharing, which will account for 14.1 percent of the city’s revenue in fiscal 2015.

No. 4: Oakland County and its residents financially support several things that help the region, including the city of Detroit. Oakland County taxpayers voted to support a three-county millage that goes to fund the Detroit Zoo, which is located within Oakland County in the city of Huntington Woods, as well as a millage for the Detroit Institute of Arts.

Oakland County has also given $500,000 a year to Automation Alley for the past 14 years. Automation Alley is a technology business association that supports that industry, including businesses and institutions located in the city of Detroit.


TOPICS: Government
KEYWORDS: detroit
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To: MichCapCon

Racist whites flee urban decay?

or

Racist whites create urban decay by fleeing it ?

or

I hate whites?


41 posted on 09/26/2014 11:13:45 AM PDT by sickoflibs (King Obama : 'The debate is over. The time for talk is over. Just follow my commands you serfs""')
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To: Drango

Free water!!


42 posted on 09/26/2014 11:22:54 AM PDT by Dr. Ursus
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To: Mears; Slyfox

“Coleman Young made it illegal for whites to open new businesses within the Detroit city limits for 20 years.”

Deeply curious about the details of this, as well.


43 posted on 09/26/2014 11:25:09 AM PDT by TheThirdRuffian (RINOS like Romney, McCain, Christie are sure losers. No more!)
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To: MichCapCon

Translation:

It was the victim’s the mugger is poor because the victim got away from the mugger.


44 posted on 09/26/2014 11:26:04 AM PDT by TheThirdRuffian (RINOS like Romney, McCain, Christie are sure losers. No more!)
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To: TheThirdRuffian

It was the victim’s FAULT the mugger is poor because the victim got away from the mugger.


45 posted on 09/26/2014 11:26:49 AM PDT by TheThirdRuffian (RINOS like Romney, McCain, Christie are sure losers. No more!)
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To: MichCapCon

The headline is highly misleading, and defamatory to my economist friends. Reich is a lawyer, not a professionally trained economist. He has published many popular books and a few law review articles, but has never published in a scholarly economics journal.


46 posted on 09/26/2014 11:38:53 AM PDT by riverdawg
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To: MichCapCon
University of California-Berkeley Professor Robert Reich...

Perhaps he doesn't realize that it's not Whites that can't be trusted; it's short people...

47 posted on 09/26/2014 11:56:32 AM PDT by trebb (Where in the the hell has my country gone?)
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To: sickoflibs

Reich has always been a pathological liar.


48 posted on 09/26/2014 11:57:09 AM PDT by stephenjohnbanker (The only people in the world who fear Obama are American citizens. KILL THE BILL!)
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To: Maceman
Robert Reich has had a hair up his butt about white working class men for years. he juts hates them and will use race any time he can to dis them. Who knows why...maybe because he is such a little runt he feels inferior.
49 posted on 09/26/2014 12:01:25 PM PDT by hinckley buzzard
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To: MichCapCon

Reich has fully transmuted into an Ayn Rand villain.


50 posted on 09/26/2014 12:13:03 PM PDT by denydenydeny ("World History is not full of good governments, or of good voters either "--P.J. O'Rourke)
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To: TheThirdRuffian

Please see post #39


51 posted on 09/26/2014 12:18:00 PM PDT by Slyfox (Satan's goal is to rub out the image of God he sees in the face of every human.)
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To: Responsibility2nd
So. The little midget ended up at Berkeley, huh?

Didn't Rush call him the "Pit Yorkie"?

52 posted on 09/26/2014 12:28:18 PM PDT by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: Slyfox
What did Coleman Young think would happen when a major portion of the tax base flies the coop?

Or did he even care?

He let his hate overcome any common sense he may have had.

53 posted on 09/26/2014 12:31:08 PM PDT by JimRed (Excise the cancer before it kills us; feed & water the Tree of Liberty! TERM LIMITS NOW & FOREVER!)
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To: MichCapCon

Professor Reich knows all about poverty - he looks at it every day from the passenger side window of his Mercedes while commuting from Montclair to his office at UC Berkeley.


54 posted on 09/26/2014 12:36:37 PM PDT by skeeter
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To: arista
What it comes down too is some people are racist against white people and look for ways to apply a scholarly veneer to their bigotry.

Yep. That also explains the Left's love of "White Privilege Theory".

55 posted on 09/26/2014 12:44:08 PM PDT by Junior_G (Funny how liberals' love affair with Muslims began on 9/11)
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To: detective

Evidently a fragile prosperity that took little to knock it over. Did not honest Detroiters try to fight back against the malcontents?

Never really understood why “newcomers” to Detroit from 1946-65 were let in in the first place.


56 posted on 09/26/2014 12:47:07 PM PDT by AceMineral (One day men will beg for chains.)
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To: Junior_G; arista

Anti white bigotry is what motivates the entire civil right industry anymore.


57 posted on 09/26/2014 1:01:02 PM PDT by skeeter
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To: MichCapCon
White man can't jump think.
58 posted on 09/26/2014 1:02:31 PM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: Wiser now
In other words, how dare white people run away from paying their fair share?

...and that blacks can't do anything without white people. The ultimate racist comment by Reich.

59 posted on 09/26/2014 1:06:16 PM PDT by BookmanTheJanitor
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To: MichCapCon

Robert, it is white, and black liberal Democrats/Marxist/socialist and unions for the last 50 years that have destroyed Detroit.

Can I get an “Amen” Mr. Reicchhhh?

5.56mm


60 posted on 09/26/2014 1:09:57 PM PDT by M Kehoe
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