Make Sure that Our Country Does Not Become Detroit

Yesterday, Barack Obama told the leaders of the Congress that the economy is very bad and getting worse. The president-elect's words of warning about the future of the economy is already a present reality for many Americans. The challenge for our incoming president will be to make sure that our country does not become Detroit.

Detroit is my hometown. Over Christmas, I spent some time there with my family. The painful signs of decay are deepening -- even from the last time I was there just months ago. For a long time the cracks of the city were only noticeable to a native, but now even the casual visitor can see the signs that the city is literally falling apart. My hometown, with a metropolitan population of over 4 million, can no longer sustain a daily newspaper. The Detroit Free Press will soon cut home delivery to Thursday, Friday, and Sunday only. Abbreviated reporting will be available the rest of the week at select newsstands and online. Advertisers have followed jobs in fleeing the state, leaving a ghost town and ghost state in its wake. And if the automakers begin to fall, of course, everything will get much worse.

A report in November showed that unemployment rose in 364 out of 369 major metropolitan areas in our country, with Detroit leading the country with an unemployment rate of over 9.5 percent. Only 10 years ago, the city's unemployment rate was 3.9 percent. Detroit has seen hard times before as many areas of the country have, but things look like they will get worse before they get better.

My brother is the COO for the largest non-profit service provider in the city. His family's home is now worth less than their mortgage -- an experience now common to many Detroit area homeowners. His next door neighbors purchased their home for $200,000 just a few years ago, and the house sold last month for $35,000. Foreclosures are on every block, and others have abandoned their homes and their mortgages, leaving behind lower property values and boarded up windows.

FDR, unable to walk on his own, inspired hope to Americans as he spoke of our country as a sick patient in need of care. The president-elect yesterday said,

Right now, the most important task for us is to stabilize the patient. The economy is badly damaged -- it is very sick. So we have to take whatever steps are required to make sure that it is stabilized.

I urge our lawmakers to move quickly and responsibly for the good of the patient. The stimulus package that has been proposed has the potential to "break the momentum of the recession." But with this large expenditure also comes an opportunity to unprecedented transparency and accountability. The new Congress should ensure that the bill is made easy to understand, track, and search online. And I pray that my new hometown can put aside its bitter habits of partisan blaming and attacking, and lawmakers will decide together to do the best thing for the country.

Jim Wallis is the author of The Great Awakening, Editor-in-Chief of Sojourners and blogs at www.godspolitics.com.

Click here to get e-mail updates from Jim Wallis

Comments

[kstuff]

I agree Overdog. Unfortunately, a stimulus cannot even touch this mess.

[Overd0g]

The problem is that the stimulus isn't the best thing for the economy.

[ObjectiveRealist]

What would you say is the best thing for the economy?

My position is that essentially everybody's skills are specialized, therefore economic exchange or barter are our options (self-sufficiency in the sense of living off the land with no need for exchange, is not feasible); money is supposedly the most efficient mode of exchange in such a large and specialized economy, therefore spending is mandatory; we are also currently in debt, therefore deficit spending is mandatory; the only question is whether to
1. continue foolish unsustainable deficit spending on colonial expansion while taxes for the wealthiest 1/10th% are cut
2. or refocus our deficit spending on renewable energy sources, the United States' infrastructure, and education for vital professions: schoolteacher, electric car mechanic, nurse and community organizer.

[BlackTom]

Holy Moly,
On realtor.com, there are 356 single family homes, 3bed/2bath plus, in the Detroit area selling for between $1,000 to $20,000. This is a disaster. It will get worse, but it's hard to contemplate Detroit as a ghost town.

http://www.realtor.com/search/listingdetail.aspx?pg=29&srcnt=356&sid=78932d6fcd3f4181ad549a2eb1507ce8&fhcnt=18&loc=detroit%2c+mi&usrloc=detroit%2c+mi&mnp=1000&mxp=20000&bd=4&bth=4&typ=1&ml=8&fhpg=4&lid=1087373227&lsn=286

[Overd0g]

Maybe we just need to work on our contemplation skills then.

[BlackTom]

I guess I could watch Robocop.

[imill79]

Detroit, when I graduated High School in 1998 was one of the wealthiest regions of the world. Oakland County (County north of Detroit) was the wealthiest county in America. Nearly every one of my parents friends drove a Cadillac, or at worst, new other car. Property values soared. I grew up in the suburb of Royal Oak.

You can slam us all you want, but innovation is all Detroit is, the Car, the Assembly Line, Punk Music, The hot dog, Motown/R&B/Hip Hop, and the greatest Rock n' Roll scene ever. On top of it all, the Detroit auto companies suspended most production to help the U.S. and FDR win the second World War. My Grandparents fought, my Grandma's made bullets out of toothpaste containers at the Ford/GM/Chrysler Plants...for FREE.

As they say, and I challenge, look it up....DETROIT...always the first in, and first out of a recession/depression. Good luck, but try to MAKE SOMETHING, it feels so much better. Plus then people actually have a reason to give you money.

Ian Miller

[kstuff]

Thanks for your article. I live in Troy, Michigan. We've been in an economic depression for two years here. It's important to note that the suburbs are included in this mess. Million dollar homes in Birmingham have been foreclosed on, physicians are relocating their practices in other states because they simply cannot make any money here. Medical bills get paid last, if ever. Just move, you say? You will not be able to sell your home, even at a major loss. So many people have left that there are literally no buyers. You have to walk away from your home, if you want out. All I can say is...SOMETHING NEEDS TO BE DONE TO STOP THE BLEEDING. Government needs to step in, in a big way. Forget the economic stimulus. Put a moratorium on all foreclosures. Allow those whom have already foreclosed on their homes to purchase a less expensive home, without a long waiting period provided they can provide evidence of ability to pay.

[Overd0g]

The problem with a moratorium on foreclosures is that it violates private contracts between lenders and borrowers. There will be long term, very nasty, consequences if everyone finds out that whatever contracts they agree to can be violated at will by the government. It makes us a nation of men, not laws. That's a real bad road to go down.

[bannorhill]

You have had Democrat Mayors for over 35 years who have done nothing to attract new business to Detroit.

The economy goes bad for 9 months and Bush gets the blame and Republicans get tossed.

How about 35 years of Detroit decline and they keep electing Democrats.

[Strywever]

Oh, for Pete's sake. How much control does the mayor in YOUR town have over major industry and the regional economy? And what is YOUR mayor doing to force businesses in your town to become more profitable?

Please . . . educate us all about mayoral power in this situation.

[bannorhill]

In the last 6 years our mayor has been able to attract a new medical school, attract many computer simulation and software companies to the area. He did this by tax incentives, no state income tax, and building the necessary roads and infrastructure for the facilities. We now have thousands of high paying jobs here that did not exist 6 years ago. And this was a Democrat mayor who worked to get the jobs here.

[UnknownSoldier]

well NYC has been electing Republicans for the last 16 years and 8 years of Bush and the city may go broke. Again

[bannorhill]

You forget that under the last Democrat New York mayor (Dinkins) New York was unable to pay city employees. New York has not returned to that point yet.

[Bluedanube]

And the lack of a coherent urban and industrial policy doesn't have anything to do with the decline of a major city. Grow up kool-aid drinker.

[bannorhill]

Tax policies have alot to do with attracting business. Favorable tax provisions attracted Toyota to Kentucky and BMW to South Carolina. At the same time Detroit suspended announced city tax cuts. The mayor has control over those and many other policies to attract business.

[HARVIN]

It's already Detroit and the old USSR combined.Be afraid,Jimbo.

[praire2paradise]

Look across the lake at southern Ontario. Windsor and Toronto are feeling the pain of the economic crisis, but they are not the scary, decrepit hulk that is Detroit. (You can do the same thing in Niagra Falls, NY/ONT) Why is that? Could it be that Canada has a rational, effective system for health care and other social services? I've got an idea to start turning the rust belt around. If the southern Senators try to block President Obama's health care reforms, then let's let the blue states join in a rational rational healthcare scheme with Canada. Cut the federal subsidies to the south and let the red states fend for themselves. Relieved of the health insurance burden, American auto companies would easily turn around and regain a competitive posture with the foreign producers.

[UnknownSoldier]

sounds like the start of a pretty sensible plan

[schatsie]

I like it too, but I do want all the children insured and all the soldiers and their families... under Medicare if nothing else..Also could we get the VA to run the countries pharmacy program? That might cut that expense in half... and then Big Pharma would not have the money for the stupid male performance enhancement drugs.. (of course the MSM would have a cow about this)

[Overd0g]

Government control of health care isn't more "rational" than any other model. It may be more cost effective for segments of the population, but that doesn't make it more rational.

[Peter007]

Why doesn't Detroit get a stimulus program of their own? The City should issue Bonds for construction of new roads, bridges, and schools. That would put thousands of people back to work and provide a stimulus for higher tax receipts. Teachers salaries should be increased too, so they will have more money to spend in the local economy.

[drymartini1]

Who would buy Detroit's bonds? they would have ratings lower than those MBS and CDO's hehe :)

[radicalcentrist44]

Go ahead and invest in Detroit bonds. You would get a better return investing with Madoff.

[marignymitch]

New Orleaneans again salute Detroit. Without the Motor City we'd be the biggest basket case in the nation. But we're a strong second!

[maxfax]

With all due respect Mr.Wallis, where were your prayers and acknowledgment of the partisanship, destruction of the country and the economy over the last eight years?

You people are puzzling, most of you have ignored how this current leader and the former heads of the Senate ignored the country's health and did whatever they wanted to the benefit of their Wall Street and corporate brothers, the American citizen be damed. Now you people speak up?

[red state democrat]

You must be confusing Rev. Wallis with Rick Warren, Pat Robertson, John Hagee, et. al. Jim Wallis's progressive bona fides are beyond question, as you'd know if you read his books. He's spent the last eight years calling for an end to partisanship and a rededication to helping the poor and vulnerable. Not unlike a certain President-Elect... Your attacks are unfair and unbecoming.

[2warvet]

You should be asking what have the dems done in the last 2 years since they took control of the house and senate to try and undo the economic mess we are in. Oh yeah that's right Barnie Frank and others were saying the Fannie and Freddie were in GREAT shape and had no problems and kept forcing banks to make bad loans in the interest of ensuring that EVERYONE had the chance to own a house.

All the people that have been elected are responsible for this. And don't give me the "it's George Bush's fault!" Just because you say it over and over doesn't make it so. Do you home work and place the blame where it belongs.....Washington, DC and all the idiots we have elected.

[Overd0g]

Aren't Wall Street men and corporate brothers American citizens too?

[DallasMike]

You have a Dem as the Michigan Gov
You have a Dem as president 1+1=2

[Liberoservative]

You had a Republican controlled Congress and President for six years and a Republican obstruction of any passage of anything meaningful in congress when the Dems gained control in 2006.

Your 1 plus 1 equaling 2 means nothing to the Republican obstructionism sang to the tune of "free market" economy which descended into pure and simple greed......

It has ended up to be a minus 1.... I can't even give them credit of zero because they have totally destroyed our economy and the world went along with them...

Somewhere is an undisclosed location, Osama Bin Laden is laughing his arse off....

His plan to destroy us economically has succeeded beyond his wildest dreams....

[Overd0g]

No. We destroyed the economy. We lived beyond our means, and now the bill is coming due.

[melponeme k]

They have already extended help to us. By giving away our hard earned tax dollars to Richie Rich crybabies who then used that for Holiday bonus trips.

And I expect the same in the coming months.

[mommadona]

Dear Mr. Wallis

Your task, if you choose to do it, is to get every fundamentalist Republican up there in that City on the Hill to join the REST of this country, drop their passive-aggressive "DROWN THE BABY IN THE BATH WATER" ideology and admit there IS a need for a responsive federal government.

You can 'talk their talk'.....

Sincerely,
~One really exasperated, progressive, traditional witch~

[Trebor1]

Does anyone believethat Detroit's unemployemtn was less than 4 percent even 10 years ago. You had better "google" the name "Chris Martenson and Fuzzy Numbers" to see how these statistics are kept if you believe that!!!