Most Americans are well aware of Detroit's fabled nickname 'Motown', but that city also had the lesser known moniker of 'Union Town'. It was called 'Union Town' because of all the mid-Western cities, it had the strongest union representation in almost all areas of work and manufacturing, and its city's operations. In 1986, the Chicago Tribune highlighted this supposed strength of Detroit with this glowing reference: `Union Town` Detroit Runs Rings Round Most U.s. Blue-collar Cities.
Today, Detroit is now, arguably, the most decayed major city in the U.S., where abandoned homes and buildings have to be bulldozed into oblivion. Some homes are actually being sold for as little as one dollar; just so the owners can get out from under the tax burden. In June, Detroit avoided bankruptcy by allowing itself to be put into administrative receivership where the State of Michigan oversees the operation and expenses of the city.
How Detroit went from a 'Union Town' that "Runs Rings Round Most U.S. Blue-collar Cities" to one that is literally at death's door is probably the worst testament to the symbiotic relationship that existed between the city's controlling Democrats and the Unions. First of all, the private sector declined because companies, in order to stay competitive and avoid high union wages, moved their operations to non-union, right-to-work states, or overseas. This resulted in Detroit losing the breadth of its tax base. Secondly, the City's Democratic mayors and city council continually gave into the union demands for higher pay and pensions in order to keep the City running. So, the combination of declining taxes and higher costs of operations proved to be the bitter end to this once great city. A lesson that all city managers in America should learn from.
--- BloombergBusinessWeek: Detroit Council Accepts State Plan to Avoid Bankruptcy: http://www.businessweek.com/news/2012-04-04/detroit-council-accepts-state-plan-to-avoid-bankruptcy
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