Detroit: urban renewal or hipster experiment?

If there’s one city that should be the poster child for post-industrial collapse, it’s Detroit, the decline of the car industry there followed by a corresponding decline in population which in turn meant that huge parts of the city haven fallen into disuse, its suburbs returning to wilderness. Pictures of the city shows an urban core that looks like a set from Mad Max, combined with suburbs that are slowly returning to prairie. Things have gotten so bad you can get houses for $100 or less even, but even then rarely find buyers. The city is broke, industry has moved away and new employers are wary to move in. It’s not an unique story, plenty of industrial cities in Europe and America both suffered the same fate from the sixties onward, as their industries lost the competition with emerging industrialising nations in Asia, but Detroit was hit much harder than any other city, had further to fall. The current recession hasn’t helped either.

But as Aaron M. Renn shows in an excellent overview post on New Geography, this collapse offers opportunities as well:

But as with Youngstown, one thing this massive failure has made possible is ability to come up with radical ideas for the city, and potentially to even implement some of them. Places like Flint and Youngstown might be attracting new ideas and moving forward, but it is big cities that inspire the big, audacious dreams. And that is Detroit. Its size, scale, and powerful brand image are attracting not just the region’s but the world’s attention. It may just be that some of the most important urban innovations in 21st century America end up coming not from Portland or New York, but places like Youngstown and, yes, Detroit.

Disasters, whether slow moving ones like Detroit or much faster ones, like in New Orleans, always offer opportunities for radical change, either positive or negative. They provide an empty canvas on which a sufficiently determined government or visionaire could imprint their vision. In his post Renn contrasts two conflicting ideas for the redevelopment of this empty space. One is a topdown vision still largely vapourware because neither government nor business is strong enough and interested enough to contemplate implementing it:

One natural response is the “shrinking cities” movement. While this has gotten traction in Youngstown and Flint, as well as in places like Germany, it is Detroit that provides the most large scale canvas on which to see this play out, as well as the place where some of the most comprehensive and radical thinking is taking place. For example, the American Institute of Architects produced a study that called for Detroit to shrink back to its urban core and a selection of urban villages, surrounded by greenbelts and banked land.

The other is an already existing, bottom-up movement as people, both local and newcomers, adapt to the possibilities of all the empty spaces and realise that the city government can’t stop them. It’s a typically American vision, individualistic and libertarian:

In most cities, municipal government can’t stop drug dealing and violence, but it can keep people with creative ideas out. Not in Detroit. In Detroit, if you want to do something, you just go do it. Maybe someone will eventually get around to shutting you down, or maybe not. It’s a sort of anarchy in a good way as well as a bad one. Perhaps that overstates the case. You can’t do anything, but it is certainly easier to make things happen there than in most places because the hand of government weighs less heavily.

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As the focus on agriculture and even hunting show, in Detroit people are almost literally hearkening back to the formative days of the Midwest frontier, when pioneer settlers faced horrible conditions, tough odds, and often severe deprivation, but nevertheless built the foundation of the Midwest we know, and the culture that powered the industrial age.

Neither vision really appeals to me, I must say. Both deny Detroit its identity as an industrial city, as a Black city, both ignore the actual inhabitants of the city in favour of utopian dreaming. Detroit deserves better than to be a hipster experiment or some sort of centrally planned monstrosity. True renewal needs to come from the people who actually live in the city, with their input and consideration for their wishes.

There is of course a certain libertarian appeal to d.i.y. urban renewal, but the question how much the people involved help create a true community and how much it’s just trustafarians dicking around.

Boeing employees sweeping the streets of Amsterdam?

volunteers for the street cleaning day

So I was bringing my garbage bags to the collection point (an underground storage bin, meaning I can bring out my garbage whenever I need to, instead of once a week) and I saw this group of people standing there. Nosey as I am, I immediately asked what was happened and it turned out to be a sponsored cleanup of the neigbourhood. Apparantly these happen regularly, but at times I’m in work so I’ve always missed them. Organised by the stadsdeel, usually these include volunteers from the neigbourhood, but not this time. This time there was a group of volunteers from Boeing (!) of all companies, sponsored by their company to spent an afternoon cleaning up one of the poorer districts in Amsterdam. This is something Amsterdam city council encourages in the current climate of budget cuts, a nice and easy way for companies like Boeing to show off their social conscience and a cheap way for Amsterdam to get some work done that normally should’ve been done by city employees.

brooms

It’s well intentioned on all sides of course and certainly not as bas as what happened in Den Haag, where at least one street cleaner lost his job, only to have to do the same work to keep his unemployment benefits, saving the council 400 euros a month… Yet it still feels wrong to have this corporate voluntarism, even if it’s the best the stadsdeel can do at the moment. I’d rather see people getting paid a living wage to do this work, work that needs to be done, than having to rely on volunteers to do the same work, especially volunteers from big multinational corporations hoping to get some good p.r. from it.

Bring on the Jubilee

Banks sell debt for pennies on the dollar on a shadowy speculative market of debt buyers who then turn around and try to collect the full amount from debtors. The Rolling Jubilee intervenes by buying debt, keeping it out of the hands of collectors, and then abolishing it. We’re going into this market not to make a profit but to help each other out and highlight how the predatory debt system affects our families and communities. Think of it as a bailout of the 99% by the 99%.

[…]

For every $1 donated, we are able to buy and abolish $20 worth of debt.

The Rolling Jubilee project is one of the cleverest, simplest direct action ideas I’ve ever seen, a way to short circuit the toxic relationships between debt and poverty that the economic crisis has made worse (and made worse the economic crisis). I’ve blogged about idea of a Jubilee before, but never thought of doing it like this.

There are some caveats of course; buying up debt like this does help, in the long run, to prop up the whole rotten banking and lending system, but in my opinion this is cancelled out by the good it does now. Besides, the system is propped up already by the tax payer and the working classes anyway and this way we actually receive some benefit from it.

A simple demonstration of a complex problem



Take a staircase in an underground station in New York with one step slightly higher than the others, point a camera at it, then watch as one after another people stumble over it. Et voila: a ready made metaphor for the uselessness of discussing social problems in terms of individual merit. For any given person walking up those stairs it is true that, if they knew about that step in advance, or paid attention to the people stumbling in front of them, or just looked a little bit closer at the steps, they wouldn’t have stumbled, as you can see many people didn’t in that video. But it is not true that everybody can do that: people don’t pay attention, misjudge why the people in front of them stumbled, are new to staircase and so on.

So it goes too for e.g. the recession. If there are three million people chasing two million jobs it is arguably true that any of those three million could get a job if they just made the right decisions, put more effort in it, knew the right people, did everything right, but you’re still left with one million people unemployed who did do everything right but still couldn’t get a break. Therefore, any unemployment policy that doesn’t take into account this simple fact, but is based on trying to spur individual people back into work, is doomed to fail.

It’s left to the reader to extend this analogy to other societal problems like the obesity epidemic, ballooning student and mortgage debts, and so on, as well as to explain why consumer action is not enough to end child labour, exploitative business practises or make companies green.

The mask slips: the real reason for insisting on budget discipline

Politicians and socalled objective media both have been pushing hard the idea that the Euro crisis can only be solved by spending cuts and spending discipline, but luckily there’s the Washington Post to spell out the real reasons behind this:

“If adopted by other nations in the union, the deal would mean drastic cuts in European budgets. It would also spell the end of three decades of overspending that helped finance a cozy social protection system envied by much of the world.”

It has nothing to do with solving the crisis, it’s needed to destroy what remains of social democracy in the EU, by attempting to take away the power to set budgets from elected national politicians through hard spending limits and fines if these are breached. There already are some such agreements in place amongst the countries who have the Euro as their currency, but in practise these turned out to be not as hard as they were supposed to be in theory, especially not when you’re called France or Germany. The proposed plan would make it difficult to “blow the budget” even for those countries, but it will of course still be the weaker countries that will suffer more under these plans. Introduction therefore would inevitably lead to more spending cuts and more structural budget cuts even in the richer countries.

But what it doesn’t do is solving the current crisis, as Alex at A Fistful of Euros explains through examining what would’ve happened had it been in place already:

It would have been much easier to sanction the decade’s violators of the Stability & Growth Pact – Germany and France. Of course they got sanctioned anyway, but perhaps they would have had to pay a fine. Let’s be charitable for a moment and assume that this would indeed have caused them to run a lower public sector deficit. This would have changed what, precisely? Had it depressed internal demand in Germany, all other things being equal, it would have caused Germany to increase its trade surplus. A bigger trade surplus implies a bigger deficit elsewhere, and it also implies that German and French banks would have lent the private sector “elsewhere” the money they needed to buy the additional exports. An additional problem might have been that, had German bonds been in shorter supply, investors would have sought other AAA-rated assets and piled up even more bubbly mortgage-backed securities, which the banks would have been delighted to sell them.

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But one thing this proposal would categorically not have done is to stop Italy or Spain or Ireland running up more public debt. Public debt fell in these countries from 1995 to 2007. Even Portugal and Greece didn’t exactly explode. Ireland would still have a budget surplus if it hadn’t massacred itself to save the banks (in part because the ECB wouldn’t help). Greece, well, perhaps, but it seems to be clear that just yelling at the Greeks is insufficient to fix Greece’s problems.

What causes government debt in the four largest EU countries

Meanwhile the chart above (From ToUCstone) shows what really drove up government debt in the four largest EU economies and it ain’t “a cozy social protection system”.