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  • Detroit: A Public Rorschach Test

    Posted by Eric Rigaud
    Dec 16, 2008


    The whole Detroit automaker bailout has my head spinning, and there’s no easy answer in sight. The people I talk with seem as torn about what to do as I am. The current debate raises fundamental questions about how we see critical public issues, what we value most, and the inherent conflicts we’re trying to work out. Detroit, and its ailments, is a public Rorschach test. So, please, pull up a chair, and let’s see what we think.

    It’s hard to talk about Detroit without mentioning two vital pieces of context. First, the $700 billion bailout of the financial markets, which to date seems to have produced far less benefit than anyone expected. For many of us, this situation undermines our confidence that yet another set of loans will produce any better results.

    Second, Katrina, where our government’s response only deepened what was an unforgiving disaster. The nasty taste left from government’s ill-conceived and incompetent response still lingers. Even after all this time, much of New Orleans remains in a state of disrepair, and many people’s lives remain broken.

    So what do you see when you look at the Detroit Rorschach? Is it simply a matter of making a decision about government loans to help revitalize three key American companies? Is it about holding auto makers accountable for decades of poor choices? Is it about saving a so-called dying city and region? Is it about propping up these companies because the domino effect from them declaring bankruptcy is too great to risk?

    But our Rorschach test doesn’t end with these questions. There’s more. I highlighted the financial bailout and Katrina episodes because they help us to see and confront even larger issues about our intentions and purpose in taking public-spirited action.
    • - Will a government response, no matter how well thought out, reach the people in need?
    • - In what ways is government capable of responding to such systemic, complex issues, and where is it not, and what’s the alternative?
    • - What responsibility do individuals hold for making their lives better and adjusting to changing conditions?
    • - What non-governmental responses are required to rebuild communities and people’s lives, and how do we marshal these resources?
    My hope is that when we look at Detroit, we don’t only see an up or down vote on auto-company loans, but a larger question: How will we deal with communities and people in transition? This question requires that we take a larger view of the issues at hand and recognize that any worthwhile response will require multiple actors. There is no magic intervention or timeline or sheer amount of dollars that can be imposed on Detroit to right what’s wrong.

    There are technical fixes for some problems, which may even include making sure our financial markets are working, levies get built, and car companies stay afloat. But, if we are truly willing to look at Detroit, we’ll see something much more complex, fragile, and rooted in the daily lives of people. Making loans is the easy part. Repairing breaches is something else.

        
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  • Re: Detroit: A Public Rorschach Test
    Dec 16, 2008 | Angela Flood 
    My thought? Figure out how much income they need to make to stay afloat. Then take the SSN of that many taxpayers and have a drawing for a no interest loan to buy a new car. Then, however long it takes for them to get their car, with the company working at their normal pace, that's how long to get the car. That way, taxpayers foot the bill for their fellow taxpayer, not the CEO. This could work for mortgages too. Not a fan of no interest? How about the current one at .5%? And the people stay employed, the company has their capital for improving their systems and a guaranteed sale at the end of the process. Will our lawmakers consider this? No. Takes too much faith in the citizens.
  • Re: Detroit: A Public Rorschach Test
    Dec 16, 2008 | Terry Stephens 
    I think that our response to this problem and others has to be the old adage "No pain, no gain!" As a society we have come to expect someone, anyone, to keep us from the difficult situations in life. We want the government to save us from our lack accountability. After we overspend, over extend, under achieve, and over believe we want someone or something to step in a make it not hurt! We are a society where the impoverished own automobiles, cell phones, multiple televisions and find money to wager! We try to find happiness in shopping, watching sports, overeating, and general indulgences. There can be no easy way to a happier time. We, as a society have to learn "tough love" and let many of our institutions, communities and properties go! We will only emerge stronger after we have struggled! "No pain, no gain!"
  • Re: Detroit: A Public Rorschach Test
    Dec 16, 2008 | Phil Stewart 
    Rich, you always cut right to the heart of the most complex and difficult issues, and more importantly, you force us to confront the most difficult, morally complex choices. Keep up your critical work. None of us likes to confront these issues, but only if each of us does can we rebuild the decent, caring society for which most of us yearn.
  • Re: Detroit: A Public Rorschach Test
    Dec 16, 2008 | richard puffer 
    Rich, your Rorscharch Test analogy seems right on for this issue. As I think about what you have written, what I hear from the pundits and what my gut is saying I begin to wonder if, in fact, we are not asking the wrong questions or if we are focusing on the wrong issues. Maybe we have watched humpty dumpty fall off the wall and instead of spending all our time trying to engineer a stick back we would be better employed creating a new (the only word I can think of is paradigm and I don't like it) the new model that will move us into and through the next decades of this 21st century. I guess I am sort of wondering if we should be rebuilding or building anew?
  • Re: Detroit: A Public Rorschach Test
    Dec 16, 2008 | Eric Haglund 
    Like many institutions, the auto industry has been taken advantage of by many to build wealth and power. And like the financial institutions, it is collapsing under the weight of the demands placed upon it.

    Like the financial institutiions, when too many expect to get more out than they put in, the imbalance destroys the asset. Management, investors, the UAW and consumers have simply overdrawn on the value and capabilities of the industry. It's time to right-size and normalize the demands. It's time to bring back some realism regarding salaries, benefits and effectiveness. It can be done.
  • Re: Detroit: A Public Rorschach Test
    Dec 16, 2008 | Ron Harper 
    You can hear lots of quick answers. Almost all of them wrong and pregnant with unintended consequence. What we really need is wisdom in high places. I mean this in the most non-partisan way possible. We have got to have some people who are willing to step up and do what is right for the whole country and they need to have a really good idea of what that is. We are floundering.

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