Tuesday, March 08, 2016

Neither Democrats nor Republicans can make promises about Detroit

Comments by Mike Smith

"Neither China nor Mexico "killed Detroit." Detroit committed suicide. The Democrat led city government loaded the gun and the labor unions pulled the trigger. When wages and taxes got to a point that the cost of doing business made companies noncompetitive, they had two choices - cut costs or go out of business. Since capital flows to wherever it is most efficiently used to generate profit and companies follow capital, the work went to locations where cost could be reduced. It is as simple as that. Detroit wasn't left behind because China and Mexico had some sort of secret plan to kill it, Detroit died because it gave jobs away, jobs that Mexico and China were happy to accept.

Progressive economic policies are the equivalent of salting the earth. Without changes in those policies, there can be no fertile ground in which companies can plant seeds of job growth."

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