5 ms·

Same thing happened to the auto manufacturers in Detroit. Used to be one of the richest cities in the world, now one of the poorest and most violent in America.

simne 5y ago
No. Detroit is the case of overestimate their success, and they just got too much debts. Usually investors are much more cautious, but in Detroit, used standard scheme of distributed responsibility, where not exists one person, who responsible for bad decision, but these decisions made by committee or by some collegial scheme. This is also known as one of the biggest problem of democracy - some subject could manipulate others. In craziest form, one subject could ask other parties with vote power, to jail any other party, and than divide its property between others (who stay free), and repeat this until all others will be in jail, and all property will belong to this creative subject. In real life, very typical thing, to make mega-projects (which where really created in Detroit), to plunder taxes. BTW this is easy to see, by looking on projects distribution. For example, normal community build lot of cheap projects, but little number of mega projects, and community which is not well enough mature, will attract to mega projects, because they fear to got response of making little things.
- Gollapalli 5y ago
  You're not wrong on the problems of distributed responsibility. But Detroit was destroyed by the looting of the American auto industry, which was offshored, outsourced, and automated in the pursuit of efficiencies by people who were well-suited, well-heeled, and not far-sighted. The automakers had been in decline by the 70's, but the manufacturing of automobiles in Detroit sustained that city, and when you remove the chief industry of a city, the results are predictable: the city declines.
  - simne 5y ago
    Look, in business good CEO estimated as 80% of business value, or if say scientifically, value is depend much more on leadership and on quality of control, than on capital cost. Detroit before raise of automobile industry was little periphery town, very depressive place like all periphery, so no leadership, no control (in this case, sure mean local government), simply because there where empty place, nothing to control. In very short time appear automobile industry, which attract capital, but it is unfortunately typical, that business does not care about control, even more - in many cases business struggle against local government. So that's all history - money tsunami appear, and flooded city; local government was not appear, it can't appear so fast, without special measures (I studying community dynamics and local governments for more than 10 years, and I have not found any facts about special programs to raise level of Detroit local government; unfortunately I seen extremely anti-local government measures); this money flood disappear, left debts. And unfortunately that's typical history, poor cannot become reach just getting money, he should learn, change his mind.
michaelbrave 5y ago
Most people who talk about the fall of detroit ofter refer to as "bean counters vs car guys" (metrics and commity vs passionate people)and once the company was entirely "bean counters" and all the "car guys" were pushed out it quickly fell.

simne 5y ago

No. Detroit is the case of overestimate their success, and they just got too much debts. Usually investors are much more cautious, but in Detroit, used standard scheme of distributed responsibility, where not exists one person, who responsible for bad decision, but these decisions made by committee or by some collegial scheme. This is also known as one of the biggest problem of democracy - some subject could manipulate others. In craziest form, one subject could ask other parties with vote power, to jail any other party, and than divide its property between others (who stay free), and repeat this until all others will be in jail, and all property will belong to this creative subject. In real life, very typical thing, to make mega-projects (which where really created in Detroit), to plunder taxes. BTW this is easy to see, by looking on projects distribution. For example, normal community build lot of cheap projects, but little number of mega projects, and community which is not well enough mature, will attract to mega projects, because they fear to got response of making little things.

Gollapalli 5y ago
You're not wrong on the problems of distributed responsibility. But Detroit was destroyed by the looting of the American auto industry, which was offshored, outsourced, and automated in the pursuit of efficiencies by people who were well-suited, well-heeled, and not far-sighted. The automakers had been in decline by the 70's, but the manufacturing of automobiles in Detroit sustained that city, and when you remove the chief industry of a city, the results are predictable: the city declines.
- simne 5y ago
  Look, in business good CEO estimated as 80% of business value, or if say scientifically, value is depend much more on leadership and on quality of control, than on capital cost. Detroit before raise of automobile industry was little periphery town, very depressive place like all periphery, so no leadership, no control (in this case, sure mean local government), simply because there where empty place, nothing to control. In very short time appear automobile industry, which attract capital, but it is unfortunately typical, that business does not care about control, even more - in many cases business struggle against local government. So that's all history - money tsunami appear, and flooded city; local government was not appear, it can't appear so fast, without special measures (I studying community dynamics and local governments for more than 10 years, and I have not found any facts about special programs to raise level of Detroit local government; unfortunately I seen extremely anti-local government measures); this money flood disappear, left debts. And unfortunately that's typical history, poor cannot become reach just getting money, he should learn, change his mind.

michaelbrave 5y ago

Most people who talk about the fall of detroit ofter refer to as "bean counters vs car guys" (metrics and commity vs passionate people)and once the company was entirely "bean counters" and all the "car guys" were pushed out it quickly fell.