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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Detroit vs. Chicago


    By Hayekian, Section News
    Posted on Thu Feb 21, 2008 at 10:44:01 AM EST
    Tags: (all tags)

    (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."

    < State Government spends $1,500,000 lobbying itself! | CMU Vs. Dennis Lennox: The Lessons of Unchecked Arrogance >


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    Taxes not the end all? (none / 0) (#1)
    by mcdirt on Thu Feb 21, 2008 at 11:48:31 AM EST

    Interesting post. I'd second the notion, which never gains much traction in certain sectors, that culture, environment, and a host of other variable have just as much effect, perhaps more, on business incubation than simply the relative tax burden. While we strive to keep taxes low, we must also strive to enhance these less tangible influences.

    Mayors make a difference (none / 0) (#3)
    by Victor Laszlo on Sat Feb 23, 2008 at 08:38:29 PM EST
    Mayor Daley is busy being a mayor.  Mayor Kwame "Meathead" Kilpatrick is too busy banging broads on the side and converting public funds and resources for personal use and then firing anyone who has the audacity to investigate him.

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