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Detroit vs. ChicagoBy Hayekian, Section News
(Promoted by Nick...)
In comparing Detroit and Chicago I keep coming back to the issue of culture. By conventional business climate standards, Chicago should be as much a basketcase as Detroit - outrageous taxes and regulations, bureaucratic obstructionism, etc. In reality, the two cities could not be more different, and one must look someplace other than the standard business climate indicators to explain it. Thus, culture. A colleague offered the following: "Could this be no more complicated than just a plain 'ole rule of law matter? Detroit's political establishment operates with little pretense other than self-aggrandizement. Any effort to put a business there can be subjected to a dizzying array of debates and frustrations if the political wind blows the wrong way . . .
"I seem to recall a recent incident where a grocery store chain was blocked from putting a store in because it was not sufficiently minority owned, which led to loud and public town hall meetings where the city council would show up and pander to a VERY localized form of nativism. This, despite the fact that people were already lining up to fill out applications to work in the store.
"There are doubtlessly other recent examples and probably dozens every year that don't hit the newspapers. The two biggest unions in the city -- DFT for schools and the AFSCME group that runs the water dept -- are shot through with confessing Marxist agitators who see everything as an opportunity to highlight and exploit the class struggle. "Just putting up a retail business is subject to the worst form of irrational politics rather than strictly business and law. That, I suspect, is not a problem that Chicago has to deal with. Indeed, few cities in America are this screwed up. And, of course, that dynamic feeds on itself as more rational people leave, concentrating the mix of rabble rousers and the politicians they influence. "While Chicago's taxes may be just as bad, and its pols just as corrupt, the ethos is to welcome ANY business that is willing to come in and put up with the taxes, not hold star chamber hearings to determine whether their morals conform to the local standards."
Detroit vs. Chicago | 3 comments (3 topical, 0 hidden)
Detroit vs. Chicago | 3 comments (3 topical, 0 hidden)
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