Detroit's problems were exacerbated from within. Over the years, Detroit has developed a reputation for being hostile to business and, not surprisingly, employers fled the city. At the same time, the city’s government grew bloated and corrupt.Related post:
Labor bosses leveraged their bargaining powers with local politicians for expanding city services and additionally helped pass stringent laws that prevented underperforming public employees from being fired. In one extreme instance that exemplifies the city's gross waste, the Detroit Water and Sewerage Department employed a horseshoer despite not having any horses.
As the city's finances suffered, Detroit’s union bosses demanded fat pensions and high salaries.
In fact, what has hit Detroit the hardest is the cost of paying union contracts and benefits for basic services, like law enforcement and trash removal. These costs alone have contributed to nearly $15 billion in unfunded liabilities for the city.
Duh-troit: $1 million check misplaced
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