By
Sampson Iroabuchi Onwuka
The Impact of Affirmative Action
Rudyard Kipling “We were dreamers, dreaming greatly, in the man stifled town, We yearned
before the Sky-line where the strange roads go down, came the Whisper, came the
vision, came the power with the Need, Till the soul that is not man’s soul was
lent to lead”
Transition strategy of how
production is related to cost, Labor to output….
Basic study for understanding
transition economic meeting
(1)
To determine trends in industrial development and their impact on
Detroit
(2)
To determine the various pressures which cause industry to move, taking
into account both moves within the City and moves to areas outcome side of the
City
(3)
To spot industrial areas having problems to planning solution (i.e,
parking, traffic circulation, space for expansion, etc.)
(4)
To determine parcel layouts and services needed in industrial areas as
an aid in industrial redevelopment and conservation.
(5)
To help determine, in part, the market for industrially developed land.
Healthy home base of City of Detroit and Creation of a favorable.
…………………………………………………………..…they creditors may
have succeeded in duping the City of Detroit
Partial equilibrium…happiness of
one not fully possible without decreasing his happiness of other ‘Pareto
Optimal’ after Wilfred Pareto and Leon Walras (1834 – 1910)…Alfred Marshall,
Bentham, Jevon’s utility.
Maryam Wright Edelman writing back
on public newspaper ‘The Carolinian’ in article she titled ‘Child Watch’
reintroduced some of the basic themes of Martin Luther’s ‘Movement of the Poor
People’ in which circumstance she cited that “At Dr. King’s death in 1968 when
he was calling for a poor people’s campaign, there were 25.4 million poor
Americans, including 11 million poor children, and our Gross Domestic product
was $4.13 trillion. Today, there are 46.2 million poor people, including $16.1
million poor children, almost half living in extreme poverty, and our GDP is
three times larger, and shamefully younger children are poorer they are.”
Citing Martin Luther’s speech from 1967 “Where we go from here; Chaos or
Community’, that for instance Dr. King mentioned that “The discount education
given Negroes will in the future have to be purchased at full price if quality
education is to realized. Jobs are harder and costlier to create than voting
rolls. The eradication of slums, housing millions is far beyond integrating
lunch counters.” That many great Americans are “uneasy” about injustice but are
not willing to do anything to eradicate it. That “A nation that continues year
after year spoil to spend more money on military defense than on programs of
social uplift”, that “America, the richest and most powerful nation in the
world can well lead the way in this revolution of values.”…..
It was amount to difficult argument
to buttress that the problems of affirmative action is one of the many
inexplicable problems of the US housing policies and introduction of Welfare.
The themes of Welfare Nation started under FDR, a period which are an infamy
for the lack of economic leads in many areas of the Country, known for how hard
it hit many Americans. It was called the era of the Great Depression,
summarized as a transition from structural decay and under-employment of the
20’s to the new period of American prosperity.
Detroit Divided by Reynolds Farley, et al.
“By the 1960’s, Detroit older
plants had become technologically obsolete and, one after another, were closed;
the Packard Motor Car Plant, the Hudson Motor Car plant, the United States
Rubber plants, along the riverfront on Jefferson Avenue, Studebaker’s Detroit
Plant, several Briggs Body plants, and, eventually, the Clark Avenue plant that
has assembled Cadillac for seven decades.”
“Because wage rate in Detroit were
so high, plants that remained were retooled and modernized. Employment
opportunities for unskilled workers declines dramatically, and by the
mid-1960s, in-Migration from the South had ceases.”
If the City White Population fell
from 1,546, 000 in 1950 to 222, 000 in 1990, or ‘a drop of 85 percent’ – is not
without reason other than the division in Detroit. While the City was
delivering product to the rest of the world, including Military outfits which
California with its deposits of metals is running. Detroit did not offer
residence much except in context of ship-yard heading the Pacific, so while
Detroit in the latter years shone on the outside, its Internal dynamics were
weal and ‘endogenously’ unstable. The connection between Chicago and the
Milwaukee was handled by the people in power many of whom were not Blacks. The
inclusion of other in Milwaukee was only recent but then the problems of
control affected a lot of outside interest arriving Detroit for first time
during the war.
But the cars gradually poured out
of the City, and according to the author, Detroit produced 25, 000 cars in
1914, but in 1918, it was producing 227, 000. This included the area of Trucks
which took up the production weight of Detroit and company from 1920’s.
But over time, Detroit was dominated by a few
large conglomerates that provided employment with national significance. This
issue gradually polished the resolution of the City where as it was no
different from any other City saving those of automobile which many people
used. With the spread of companies and some of big ones taking over the small
ones, there was the issue of mergers, and acquisition, and that involved large
scale Bank participation in public offerings and business.
Negro and the Organized Labor (2) The Black Worker by Sterling D. Spero and
Abraham l. Harris (3) Black Workers and the New Unions by Horace R. Cayton And George Mitchell (1939)
(4) Organized Labor and the Negro by Herbert Northrup (1944). Unions available
that did not join the United Auto Workers and this era in Detroit like in other
areas of economic vintage also featured Philip Murray; President of the Steel
Worker and the CIO who was replaced by Walter Reuther as former president of
the Auto workers Association.
(a) Order
of Railway Telegraphers
(b) Brotherhood
of Locomotive Firemen (BLF)
(c) Brotherhood
of Railroad Trainmen bars in their constitution.
(d) Brotherhood
of Railroad of Train Masters of North
(e) Railroad
Yardmaster of America
(f) American
Train weavers Association
(g) American
Train dispatchers Association
(h) Wire
Weavers protective Association
(i) PWOC
– Packinghouse workers organization committee – CIO
(j) UPWA
– UNITED Packinghouse workers Union, which featured a Roy Wilkins whose
narrative on the premise of some of the labor laws and changes by FDR
countenanced some of rights Black solely wanted from the Deal. According to Roy
Wilkins “We strongly suspect, although we cannot prove, the AF of L unions have
attempted to use section 7-A (of the National Recovery Act) to drive Negroes
out of occupations…”
(k) Crisis
and the official organ of Negro opposition
The connecting tie between AFL-CIO
was the International, “There are, however, actually
relatively few segregated locals if by this we mean that there are separate
unions in the same plant or craft. A few mirrors almost invariably were
segregated in the South-the carpenters, the longshoremen, paper makers, the
pulp Sulphite workers, the brotherhood of Railway clerks, the Tobacco workers,
and the musicians – but CIO International union rarely had more than two or
three segregated locals.” (97) (105).
But after this period came reform
minded including a certain George Edwards who was appalled at the division
between the two extreme groups. Among the African Americans was a large
percentage of mixed blood, many of whom were mixed with American Indians on
either side of the divide. Among the City Dwellers and people who were arriving
was an interesting mix of those who disliked the conditions on the ground, and
people such as Henry Ford who despite being Anti-Semitic and blaming as they
claimed, Jewish bankers for the Great Depression was actually convinced of the
Detroit’s future and hired Blacks as his company wanted.
“The Civil rights revolution of the
1960’s was strongly supported by the United Auto Workers and by many
Detroiters. Prior to the March on Washington, the greatest and most successful
outpouring of support for Dr. Martin Luther King was a 1963 parade down
Detroit’s Woodward Avenue.”
To get the story straight, we combine the
author’s stories with other sources () (Smith 1999) (Takaki 1979), that at
least in the decade of the Civil Rights, there was already a steam of hot oil
already taking place in Detroit. There were preachers with large crowds and following,
first where among the Whites and then the Black preachers appeared and began to
preach their own gospel.
There was the Black Muslims whose
existence was made possible by a certain W.D Fard whose religious vitality
helped to create the First Mosque in 1919 and lead to the Nation of Islam
sometime later. Fard was also believed to have preached ‘that Whites were
incarnations of the Devil’ which was opposite of the prevailing view of the
Whites or European Americans in Detroit. Fard ‘mysteriously’ left Detroit and
didn’t offer explanations, then came Elijah Poole who became Elijah Mohammed. The
rise of religious fantasist in Detroit brought two people to the country, one
was Father Charles Coughlin and the other was a man who according to him was fleeing
hate in Michigan and after became serving time in Jail became a Muslim. His
name is Malcolm Little (Malcolm X).
According to Reynolds Farley, Malcolm received some training in Detroit
Mosque before heading elsewhere but emphasized Fard’s teaching.
As far as Father Coughlin he was
quoted as saying his endorsement of F.D.R, fetched him the Presidential Ticket
for the Democrats which took place that year in Chicago and Coughlin cited at
some point that he was principally responsible for FDR’s election. But following a fall out between Coughlin and
FDR, which Coughlin decided to take a position against him by gathering the
followers of a certain Francis Townsend and his well-known idea of
share-the-wealth, and followers of Huey P. Long, who following his
assassination a certain Gerald L. k Smith succeeded and based on persuasions
from Coughlin transferred his operation and campaign to Detroit.
As such, the
condition in Detroit was no exactly White and Black, that there was genuine
concern for progress and for ‘Civil Rights’ in Detroit and Michigan that
poverty was also an issue. One out of every seven in Michigan received Government Check (what
became Welfare), and it was at a time, that less than 10 percent of people in
Detroit for instance were considered Blacks and these included the people of mixed blood. The crisis was due to the fact that White
reasonably felt unease about these Blacks from all parts of Michigan and outside
the State seemingly evading their City.
From historical accounts of the
State of Michigan and the City of Detroit and from recorded history of that
area, it would seem that as many have pointed that the State of Michigan did
not count Blacks as Citizens, that the practice may have started as from the
Taney Court years and from the Wisconsin Compromise. The interest of Illinois
in slave holding was unfounded but from later argument after the landmark of
Drew Scott case at the Supreme Court, many new states adopted measures that
simply did not recognize the presence of others. In essence, it is claimed that
85% of Detroit population in the early part of the 20th century was mainly
White and the rest of the population accounted for the 15%, may not in fact be
accurate, that the real number of Blacks in Detroit and in Michigan was
eventually known by the end of WWII.
Proceeding these years, federal grants and
federal taxing and investment of any kind followed the set pattern of extreme
White Majority. In reality, if we compare the dates of first supposed arrival
of Blacks to Detroit from the Wayne County or abroad (Canada), it paints a new
picture of overnight takeover of African Americans in Detroit, especially in
the pivotal decades of 40s and the 50s, a picture and graph that will also
likely suggest that there were a massive increase in Black population in the
60’s, and a decline of Whites from then on. It is not clear how true this is,
largely for no demographic decline of Blacks in neighboring state.
According to Farley, the problem so
much the Federal government had to intervene and in one weird incident, Francis
Biddle argued that Blacks migrating to Detroit can be ended with National
Security reason. His idea was rejected by the Counsel and FDR, and it seems to
me that the reason why Detroit became a National Puzzle was due to the Governor
Murphy of Michigan during the New Deal and because of Coughlin who probable
helped the ‘Forgotten Man’ and his colleagues into office, and also there was
Huey P. Long and his colleagues who as FDR mentioned was at the time of crisis
one inspiration that stood on his way to Democratic ticket. Detroit had to confronted directly and there
was nowhere around it.
But after the World War II and the
return of Black Soldiers in Detroit adding those who the government awarded
lands in Michigan and houses in Detroit, the Civil problem of share-the-wealth
and preaching of Huey Long about Debt cancellation and so on, were replaced
with conflict and some of the soldiers helped to turn Detroit into a murder
capital. But at whole, the crisis that brought Blacks into Detroit in large
number was real enough to yield a departure of White concerned about the lives
to the suburbs. The issues of armed resistance by ex-military and paramilitary
groups was also common in 1950’s and 60’s, that the end of Korean Wars, moved
the number of homicides 5 for 100, 000 residence in 50’s to 50 homicides in
100, 000 in the 60’s and 70’s. In fact in the early 70’s, there was at some
point no less 800 counted cases of people murdered in Detroit, counting male
and female but many of them were Blacks.
The reactionary incident in the
70’s warranted citizen actions that elected Coleman Young in 1974 by slim
majority but the killing continued for a few more years, many of which were
done by Police. This strangle hold
including no-action in what Black neighborhood probable out of fear of life or
just doesn’t what it reason, increased these areas to extreme violence,
especially as many of these new immigrants were looking for means and ways to
survive they turned to drugs trafficking.
Over time, young had choice but reduce the number of White officers and
increased the number of Blacks who began a quasi-protection group and
squad. Some others mentioned that Young
himself did not take crime seriously and his Deputy Chief was at some point
charged with 2 million dollar embezzlement and had to step down.
The increase of crimes in the 70’s
and 80’s in Detroit was as a result of U.S Military interest in Detroit where
executive orders to integrate were resisted for a long time. The migration out
of Detroit continued and according to Farley “Within a short interval the major
issue in Detroit Switched from a Shortage of Jobs to a shortage of workers.”
This was when the Tipping point was crossed, and as Whites lefts the City,
Blacks from other parts of Midwest and from Canada simply moved to take their
place. By the end of 80s and into the 90s, there was of 10% Whites left in the
City. There were others besides the Blacks but over time, they themselves moved
into Dearborn area.
We may also mention that from the
list of block buster deals and endorsement that both Detroit and Chicago got
from the President, it would seem stupid for segregation or struggle between
the groups in Detroit to continue. The Federal Housing Authority extended nearly
every hand it could to residents in Detroit; especially when the majority was
European America and African American themselves very narrow on the ground. One
of these endorsement was HOLC with a $2 billion network which was a fortune in
the 30’s, and it used as a vehicle to help poor residents of Detroit, Chicago,
New York, and few other places that were struggling migration from the Suburb
where grand Children of ex-slaves lived and created community. Michigan was
among the states to benefit from the loans scheme and especially Detroit and
Cleveland which took 1/8 of the federal grants to Housing. The loans were
broken in smaller bit that they were converted a very long time and the program
it’s lasted for 25 years as extended from 15 initial years.
Although the later stages of HOLC
were comatose by the Redlining which separated one neighborhood from another,
the HOLC approved 54% of the loan application in Detroit and Chicago. At no
point would any resident of Detroit mention that it was hardship or Federal
Authority that made mitigated their progress in the City. For sure there were
other Housing programs designed to keep residents from traveling from inner
City to Suburb and there was other ‘not sweat’ contract that had a section 8
extension which allowed Detroit mainly White Residents in the 70 as was revised
in 1978 (ACORN) and made permanent in 1983, a chance to stay in City and raise
their family. The program was also a reaction to the problems of Industries
taking a hike, but this effort would have done more of the harm in assisting
people however unconscionable to abandon property and walk away.
In many ways than one the issue of
Red lining is a multifaceted problem that cannot be solution by any single
bullet, and from all asunder that powered the U.S Labor markets, there was
always the question of migrants from different parts of the world, particularly
of Jewish retraction. In moderate episode compared to what happened to
Chicagoan Lawndale, the fall of Detroit in our time and the struggle for the
housing and insurance and eventually the return of red-lining only mirrors the
more devastating cases of Stuyvesant Town-Cooper Village of New York which once
built with private money as they said from Metropolitan Life Insurance under
the Chairmanship of Frederick Eckers who categorically mentioned that if he
will be willing to take the slum of New York such as ‘Gas District Houses’ littered
with whites and blacks, that he was going apply the strict observation that it
was only Whites who lived in these Apartments. These stories connecting
Chicago, Detroit, and New York, warrant a new investigative study on was
perhaps behind the idea of redlining and if there was something positive about
eschewing blacks from Kew Gardens Queens to have anybody other than blacks live
in the poor but transformed Austin Neighborhood and Sunnyside, and where the
logic is preserved innuendo New York high stake buildings where the owners made
it a matter of policy – to isolate one group from another and thereby
heightening the tension surrounding the neighborhood and hence preserving that
sense of belonging needed to live in one place.
It may seem that being around people of
similar types, whose manners are mainly as likely similar and their drifts in
culture is as much preserving as the culture of neighborhoods and real estate
engineered according to money types.
Perhaps the question is not so much the animus behind the birds of the
same flocking together as to human twins who are not interested in each and
more like deep resentment that is concomitant with similar characters living
together – or with clashes of personality irrespective of bias. Of course the weightier subject on why for
instance a horse of any color would still connection with his kind if it looked
well enough, accords the same that the general interest of all humanity is the
enduring facade of ultimate connections.
Here as we delve the mire of deliberate efforts by landlords and my
others to promote a culture at what it seems the expense of others –
particularly one – we become by stretch students and participants of the
evolution of wealth in some American societies. If we may yet indicate that
power like the male-ego mainly witness his appearing in nearly all its
concerns, and for that, must need the other is other cast abroad the
consequence of neglect and overbearing which is hind sight is power half the
apple.
Ishaq Shafig contributing his
article 'Mayor, Black, and Black Business' in Juliet E.K Walker 'Encyclopedia
of African American Business'; 1999, made a thorough going argument on the
evolution of Black Business following the appointment of Black Mayors in such
as Mayor Andrew Young of Atlanta and in Mayor Ernest N. Morial New Orleans
which came through the years of the Civil Right Movements and the decision of
the Federal Government to author Voters Right for African Americans and for
Women
Small Business Act Section 8 (d) required
recipient of Federal prime contracts exceeding I million to show the percentage
goals for minority….
Minority owned firms received 3.4% of all ‘Federal
Procurement Expeditions’, by the end of the 1994, they have received somewhere
between 8.3 Billion dollars to 14.4 Billion. Madame Chavers Wright ‘The
Guarantee’, discusses the trials and triumphs of ‘The Douglass National Bank’
instituted in 1921, considering how the Banks managed to survive the Great
Depression, that the Bank and its associates primarily focused on Black
Businesses and ensured returns on their investment, through structured cloth
industries and factories which made cloths for women. The Bank got actively
involved in small business administration, and made systematic demands on the
working American Population such as the Black Chicagoans and the Black
Milwaukee. That there was toughness she mentioned does not fail to incorporate;
There is very little doubt that the
Great Depression as we have been told and from sources which are available
probably arrived the Americans from overseas. In one sense or another, the
Credit and Securities driven recessions of 2008 may started from Europe and it
was not that the money was coming in at any point and the debts were not
themselves settled on time, but there is something about the continues
injection of Money into US through the Investment Banks such as Lehman Brothers
and Bear Stearns and many others, that was re-invested in Asia and particularly
China. In some sense, these wealth of nations were meant to buy a future for
European companies and Pension fund managers funneled the reserves, and these
were to be done using the AIG as commercial vehicle which was speeding ahead of
the FANNIE MAE as SME, but then the race
towards closing a deal involves annual flipping which was so crazy that when
the frenzy entered New Jersey neighborhood were sent to auction block and when
these houses are sold, they are repackaged the same minute to the markets and
these people in turn, sale and repackage and then on and on.
It was not only
New York and New Jersey that was experiences these unusual interest from
others, it was something visible throughout the major cities in America. House
prices without matching employment numbers simply took flights. In North
Carolina for instance, most areas in the region have problem accounting for the
craze of houses and real estates, so also South Carolina. It is however in
Texas that the case was especially due to New York influx, it also has to do
with people escaping California hot market. New Yorkers were priced out of the
market by the invasion of foreign money, coming from Asia and their Government
backed mutual funds, the money was also coming from Russian and the Bolsheviks
laundered money including the most significant cog of the investment furniture,
which Europe and Eastern Europe showing their time to American based
businesses.
But from the vintage of the economic
past of American Cities, continue from H.P Long
New York is a concern and it is
import because of the man who created the New Deal was not from New York, he
was at some point the Governor of the State. Majority of his commanding
influence of his administration were borrowed from New York City reformed labor
laws, especially those of Frances Parkman and the need for government to
protect the interest of the Citizen…and at the time of the problems that swept,
country, immigrants brought the news of the short falls in businesses from
Europe. Among these individuals were thoroughly educated PhD holders that were
literally ejected from their villages and the rest had to find their way
elsewhere if not America. In the Americans, cultural as well political
existence did not hold enough water; the kamikaze blowing through Washington
under Coolidge brought several new meaning to the laws of money and the
economic interest that will occupy both continents for a long time.
The oldest cities were according to him, the
hardest hit, “Between 1954 and 1977 Detroit lost about half of its
manufacturing Jobs, between 1947 and 1982 the number of manufacturing jobs in
Chicago plummeted from 668, 000 to 277,000.”
He argued that the economic
expansion of 1993 reduced poverty to 12.7 percent in 1998, the rate was still
higher that it had been at the end of the last economic expansion in 1969.”
FERA (1933) and Civil Works
Administration (1934)….George Romney…..John Engler
Expenses from the criminal justice
system has ‘swallowed’ 608 million in the 80’s….Crimes in Detroit ranked sixth
in the 90’s but Detroit jailed more Blacks than anybody….
He mentioned that under Engler that
Michigan shed 22% of the Welfare service and…..and part of the programs that
were removed was the $160 a month as compensations for people struggling with
all kinds of situation and for Welfare.
The opposition of these Acts by blacks who
mentioned that they did not benefit from the New Deal, that it was a raw deal
given the fact that the Democrats who were mainly Whites before the New Deal and Southern, simply levitated the
segregation laws already evident in the South into the New Deal, that the many
of the standards which they set, "prices" "wages" and some
of the outcomes of the Standards as later discovered such as the blunders of
HOLC in mapping the neighborhoods in the United States according the four
levels of decays, were in fact opportunity which began in real light but cast a
perpetual light on segregation.
Some of them argued that the burden of proof
was on truly and due to the Government but the rights to prosperity was based
on a system of administration that left many of those who were still angry from
their defeat during the Civil war in the corridors to essentially judge them.
If the effect of Redlining is proven by
poverty of the American Black society, it is hardly the subject of many
American studies on economics at any time. There are no real indications that
Nigerians themselves have taken the subject very seriously, or has many
doctorate students of Black studies and US Commercial laws made significant
point about the effects of Redlining and origins of poverty in African American
society. The usual pattern of thinking has always being the one that deals on
the impact of Welfare system. It is not to be missed that such economic view
hardly disappoints when it narrows down to the very end of the Black society
and how they are doing.
If that does not take the place of
these opinions about the people in question, it is because our views are
largely clouded by other attention manifest in several parts of the world on
what is now the US. It is largely forgotten, that if Blacks had an opportunity
to make the necessary amends in terms of their pursuit of business and
happiness, they would have done it. But they just couldn’t because the money
for the ‘American Dream’ now as well then follows a pattern that set blacks up
against the vulnerable to caprices of the other.
In a new book by Jason De Parle
'American Dream', the author tried to discuss the reason behind the deepening poverty
of African American society in the light of the American Dream. And once more
he retracted the evolution of these poor migrants from the South of US to the
North in search of better life. Many of them in the South were not allowed to
school together with others, and in the North, there was the issue of
separation by means of financing. The financial apartheid in the North was
however a far cry from the South where it was an open hostility. In the South,
it was a matter of survival between Black and Whites. In places like
Mississippi, the question of hate led to the departure of many people.
Jason De Parle narrated a long view
investiture of the Milwaukie as the ‘Epicenter of Welfare Reform’, where the
pregnancy of a certain Angie was a matter of concern in the whole debate. There
was the issue of Jewell and Opal, who were tainted in drug. Jason De Parle who
has covered the welfare business for a decade before the 1996 signature of
Personal Responsibility and Work Opportunity Reconciliation Act of the Bill
Clinton Era. He discovered that “Black families were more than six times s like
as Whites to a welfare check. Among long-term recipients were African
American”, that it was a situation that began long ego from among the competing
Americans that Blacks themselves were barred by law from much ado with American
society.
De Parle also cited the comments of Powder
Maker that “Because the Whites are so seriously outnumbered special means must
be taken to keep the Negro in his place….”, that they may be “good” niggers and
bad “niggers” but a “nigger” is a “nigger” and cannot escape the taint. Such
talk may just be a salesman bluffing, but of course the product taint of Powder
Maker was the whiter. De Parle cited a statement by a certain Hattie Mae that
“Men back then didn’t allow girls to have much a childhood” that migration to
the North in the Civil rights era, left a lot of families without the father –
hence the plan for Health care under Roosevelt administration was a welcome
gesture and with many of these uneducated black moving from the plantation to
the City had to rely on what the Banks had to offer.
De Parle continued that between
1940 and 1970, there was no fewer than 5 million forcing many American Cities
to have the problem of Housing in the country. These Plantation migrates
sometimes brought the world of drugs from the South to the North. It was a
question of time when the trafficking became perpetuated. And these people now
turn to cheaper avenues of drugs, and from then, the syndrome sets in. The
lives of these African Americans forever tainted with blood, especially the
lives of these black women moving in and out of Health Care services, forced a
sort of complacency about the society in terms of the reaction to overall
American lives that those in many other places formed their own opinions about
themselves.
The nature of businesses in places
like New York forced people from different parts of the world to be present and
that was also a comforting issue. The formal point of Welfare in terms of such
matters was very secondary since it was an outcome of the 1935 Social Security
for American poor of the great depression.
De Parle book presented the impact
of that struggle against Welfare program, where the lives of three women and
children became the central fix in the whole debate about US Welfare system.
The author made out the case in their favor, tracing the evolution and movement
of blacks from several parts of the South, and other variously segregated
former plantation areas in the South to search for better life in the North.
The North was a passage since the Cities were up and going in the years leading
to the Great Depression, and the immigrant population tempered the tension
between Blacks and Whites.
But De Parle never quite discussed
the root of the problem leading to Welfare and why Welfare serves as the last
hope on these African Americans and other minorities without Insurance of just
about any kind. The much of financial apartheid and loan denials and guarantee
strangled over the years much of African American businesses in America.
But the quest however continues,
irrespective of the difficulty with African American audience in doing their
bit in promoting the right manners in Banking. It is my hope that enough would
be done in this department, to raise awareness of the issue of Redlining and
the role Africa and Africans are likely to play in the future. Americans have
also failed in the effort in the whole process as well and is never that much
of the Commercial studies in the United States. In realty there is nothing
quite possible about that study given the origins of the American commercial
industry and US legal system.
In Virginia where it all began,
there was a battle ground for the very place we call America between English
and Dutch Americans over the Commercial Territory. The war between English,
France, and Netherlands started over the control of the sea. Such war forced
the British to acquire lands owned by the Dutch, and the gluttony led them to
parts of Virginia. So began the ‘Scramble for America’ which latter led to
other Scramble for other places such as Africa, Asia, North and South America,
Oceanic. That also means that the evolution of American legal system began from
commercial laws with overlay of English laws eventually. The Common Wealth of
Massachusetts did much better in terms of forming better opinions about the
society and that includes what it must do in terms of business in relation to
the country. Pennsylvania with New York containing
But the Apostles of that system in
terms of what it became in later years were among the Whites, and by the time
the curtain of Redlining fell in the 1930’s, it was too difficult for the
Society to attempt a reverse. The Societies of the African Americans were degenerating
and the high default rate in terms of business increased by day, offering more
reasons to make that the Banking and Commercial laws that permanent. And
banking was a different world in those years.
In the book 'Universal Banking',
where the layout of the facts are made the book reflected the history of
banking in United States through the eyes of senior lecturers and in terms of
'efficiency' and 'growth'. The book highlighted several question of banks
'should banks be in the securities business and insurance, and where and not
universal banks should be regulated given it perform relationship to
'specialist firms' and Hedge Funds in Global markets. The book 'Universal
Banking' also highlighted the abuses of Banking Industries in taxes, especially
the CHASE national bank and Chase Securities and Income involving Albert Wiggin
to the Glass - Seagull Act in 1933.
Yet no mention at any time was made in the
Book about the need and necessity to trace some of the troubles, abuses, and
prejudices of 'Redlining' in Banking industry to inner cities of American
society. It is up to many blacks to do same as a way to widen the studies on
the very subject. What African Americans must do is allow the changes that have
taken place to continue and provide effective studies on the very issue at hand
and why it’s important.
In many ways there is a serious connection of
the likes of I, who get slammed every else and the young and older African
Americans who have lost hope in the Banking industry. The question of who know
what is really happening to Banks? And who can widen that challenge by asking
Barack Obama and his compeers to look at the serious problems of denial of
loans and services to minority African Americans.
For black business studies, the book 'Black Business
and Economic Power' concerns business in African American society did not at
any time treat the problem, saving for one mention of the history of Banking in
Africa in the article 'Money, Credit, and Banking in Colonial and Post-Colonial
West Africa' by Adanmu G. Adebayo, where highlights of ABC-African Banking
Corporation, West African Currency Board, SAP, ECOWAS and so on was made, and
nothing that serious was ever said about African American businesses in the
last 20th Century. It is up to the current generation of people and men to make
the case for the evolution of the society and that include the changes that has
taken place in Black and minority society and how it has helped to make the
necessary changes. It is the experts who can make the difference.
It may widen our stethoscope on the
limits of affirmative actions from the view of those who not only lived through
the reasons why these affirmative actions were initiated, how it worked under
the spell of the
Welfare initiative– itself an inevitable product of the Great
Depression, whereas the Great Depression can be considered an end of Work
Houses in the South, poor working condition and stifled labor pay, whereas
stifled labor pay results from Civil War reconstruction; the result of an end to
Slave trade in the South towards the break of a new dawn for the
Americans.
Growing up Black in Rural
Mississippi by Chalmer Archer, Jr., 1992, details the structure of the African American society from in the
1920-30's and shows a life of a struggling American in the 1940s after the end
of depression Era. From his book we are meant to understand that what happened
to blacks in Mississippi that their whole process started...coal mining or coal
oil ...that is regarding where to live and who to live with and when not to do
a certain thing. In a sense, the coal mining application to half their problem
has been based on their willingness to solve other problems....From his book we
get the sense that Blacks didn't have their own laws or laws that it made it
possible for them to understand and there are no mistakes that there are such a
place as
'Ghosts of the 1930's are all
around me, tugging at my ear, nudging my memory. This is a story of things
remembered, while I lived in Tehula, and later Lexington, Mississippi, during
the 1930's and on up to 1955" In his account, 'Coal oil, of course, was a
main source of energy for our lightning, as well as for much of the heat not
coming from wool. Families not living close to the small towns did not get
electricity until the late 1940's. Coal was a multipurpose commodity for many
families."
"It is hard to even describe
the distress of black employment and the lack of it, the abysmal housing, the
nation's worst schools, and the pitiful health care during those times. Those
were the years of the worst black poverty, disease, illiteracy, and of wide
racial inequities.”
'A Jackson, Mississippi, newspaper
in February 1929 had printed these statements', "We, the white race, achieved
everything that is worthwhile, and are divinely ordained as the better class of
people" And: "We must maintain out 'integrity' in order to preserve
the wonderful civilization earmarked by our 'Almighty'. Ad as Anglo-Saxons,
Caucasians, and 'Christians', it is necessary to set up insurmountable barriers
to prevent the mixing of races" So from an African perspective - or even
African America of elder descent, there is nothing partitioning one group from
another. But then, there are consequences of such public (charging) dispatch,
it migrates from (self) to social, from social to self. 'Making a living in
rural Mississippi has always been difficult for Blacks'
According to his fraternal
grandfather - following slavery, white people actually paid Blacks for
labor...that in fact, decided which day or month or year to pay. Whatever plans
fitted their new redeemed former slaves. That the process however lasted for a
period of 12 years only they were evidence of financial gaps among the Whites
and former slave owners and they began to reposition on the account of what was
predominantly available in the country at this times of history. Naturally,
majority of these people decided that their interests were better served...'by
adopting a system known as 'tenancy" and they Blacks - both Freed and
indentured, didn't have any choice but accept the terms of ...'
There were others but who had land
belonging to their ancestors but it was rear, and from African land laws, these
newly redeemed blacks had problem of Credit and Mortgage.... Although Juliet
E.K Walker has challenged...eventually was eventually described as leasing
their own time out in slavery to purchase the land or cultivate with the yield
as the only source of returns.
But as we may not accept that
pay-as-go or paying as they went, involved one of the more difficult turns in
history, that as business were driven by profit, these tenants in the masters
land, simply devised new laws and created new barriers for these slaves or
freed men either leasing out their time in a new land or those involved ins
some degree of partnership with others. They were many of these so-called
freedmen in 1860, but there were many other cases of involving such tenancy
rule that was reduced to vagrancy and families once free and few were remitted
to ownership.
In essence, renters or land tenants per se were not asked to
leave the farms and their residence when the demands were not met or when they
couldn't pay, they were asked to make it up through labor (forced labor) or
have their property confiscated and probably sold.
In essence the transcription of
labor were not based on the meanest demands of the capitalist playing field
available, it was simply a ploy driven by necessity to compel the diminishing
free labor of the post-slave era to return to the field with promise of future
recovery which the ever-changing land laws made possible and which depended on
when the owner wished to do. These were no tenancy based on fixed, or even
adjustable rates, but depended on the varying 'degrees of independence' of
these Blacks considered free following the end of slavery from around 1848 and
emancipation of 1860.
To make it clear, the road to
survival - material survival was the farmlands, and land owners decided the
fate of their tenants - particularly through the 'labor - by -vagrancy' laws;
'whereby black families were compelled to work for someone and to continue to
work for whatever pay was offered' and those who failed to abide by this or
failed to completely listen to their representatives.
According to Archer, Government did
something about it, or tried to do something about by placing Federal troops in
areas once used for slavery....and used the 'free manhood suffrage' in attempt
to put the evil to an end…"But after Federal troops were withdrawn from
the Deep South, the return to local rule gave the governing class an
opportunity to fully disenfranchise blacks and remove black people from the
political arena” the rest was easy....for instance initial slavery as legal
term for debt repayment, and the rest was achieved like changes to payment without
regards to tenants and leading ultimately to failed obligation.
Charles Dickens ‘Sketches by Boz’
“You are to be in all things regulated and governed by fact. We hope to have
before long, a board of fact, composed of commissioners of fact, who will force
the people to be a people of fact and of nothing but fact”
Perhaps the most important aspect
of the daily business concerning Affirmative Action is perhaps to be taken from
Thomas D. Boston ‘Affirmative Actions and Black Entrepreneurship. Court cases
….The 1980 U.S Supreme court decision in the case of Fullimore v. Klutznick was
broadly interpreted as giving constitutional powers to affirmative action’ and
there was however a reversal of the trend following the case of Croson Decision.
But the 1950’s U.S Supreme Court
struck down Jim Crow, many U.S Cities picked up its demographic and this period
more than the 20’s gave serious impetus to the Urban to City migration. The
very rapid nature of this migration gave birth to problems of allocation. The
first mistakes that Americans did and particularly Whites were to isolate every
other person from main stream business and ensured this choice through the
election process. By isolating these migrants from main stream politics and
from main stream business, many of the largest growing business Cities in the
United States.
Following the 1955/56 court
decision of Mayor of Baltimore vs. Dawson and of Gayle v. Brower that ended the
segregation in the buses in Baltimore and trains, the Whites began to depart
from the City of Baltimore and not just the City of Baltimore, in many Cities
across United States including Atlanta. The Black population began to pick up. In
1958 Thomas D. Boston mentioned that following a series of court actions
involving individuals and the Cities of the United States, that some of the
civil right laws were gradually broken and after that, that for instance the
U.S Court “outlawed discrimination in access to Public parks in the case of New
Orleans City Park association Vs. Detiege” and in “1963, the Court had to ban
discrimination in access to State Courtrooms in the case of Johnson v.
Virginia”
U.S Congress in 1964 enacted “Civil Rights
Act” authorizing the attorney General to enforce the fourteenth
Amendment…adopted ‘in 1986 to prevent States from denying equal protection to
freed slaves” and the “Titles II and III of the 1964 Act forbade discrimination
in Public accommodation.” That “Title IV authorized the attorney general to
implement the 1954 U.S Supreme Court decision in the case of Brown v. Board of
education that outlawed segregation in our Schools”
“In 1965, the Federal Government attacked
employment discrimination with Executive Order 11246. This order and its
amendment obligated recipients of Federal Contracts in excess $50, 000 to file
written affirmative action plans, not to discriminate in employment, and to
undertake affirmative steps to recruit and upgrade minorities and women”
In Boston’s argument, mentions that
in other to understand the change of business dynamics for Blacks and
Minorities, we must look at the incidents the legal breakthroughs that that
took place from the 50’s through 60’s, and not only that, we have to consider
the impact of U.S soldiers who made it back from the front, who after risking
their lives at the war were left to combat Civil Rights in their own villages
and in their own towns. There was also the implied votive of Democratic
Governments that created opportunities and reliefs through series of Acts one
of which was the social Security. But the success of these Acts from the New
Deals were undermined by the Democratic Heritage of Southern Economy which
emphasized White Predominance and which did little to choke the growing age of
an Invisible Empire. From farms to factories, the land and tenant contract were
lifted from the pages of the grandchildren of the South who lost the Civil War
and following the withdrawal of Federal Troops from the Inner South, the circle
of violence gradually began and the unchecked applications of vice in places
such as Alabama and Mississippi, normalized the pattern of vice which by the
40’s and 50’ were already perpetuated.
The issue of poor business
relationship between Blacks and Whites in the South was transferred to the New
Deals, but the promise that the New Deals held for the disfranchised southern
Blacks and minority began not only a ground swell of interest for Democratic
Party, and following the rule of president Taft to desegregate the U.S Military
forces, Blacks and Minorities were essentially sold to the Democrats. But not
until the forgoing years of the John F. Kennedy and the incipient
resourcefulness of the Lyndon Jackson, that a new constituted efforts by the
Courts gave reasons for segregation to cave in once and for all – at least in
the Cities. The problems of the Migrations and the consequent presence of the
many mouths to feed, and the diatribe over Voting Rights forced a reaction from
distressed Americans – many of them Whites but the death Martin Luther King and
the riots in Chicago and Detroit, created a new emergency of what Richard Nixon
called ‘Black Capitalism’ in which circumstance Nixon argued that it was a way
to assuage the Urban Tension among Blacks and grow business in the Urban Cities
than rely on the older business structure.
Above all, there was also the issue of
redevelopment of these Ghettos found in the 10 major Metropolis of the United
States. In fact the issue was quite central to in his Presidential Campaign
Speech delivered on April 25th, 1968, that bridges were to be created between
the two polarized factions of the U.S economy, and in terms of the Black
Capitalism, the U.S Government was going provide “…technical assistance and
loan guarantees, by opening new capital sources, we can help Negroes to Start
new businesses in the ghetto and to expand existing ones.”
By March 5, 1969, President Nixon
issued an executive Order to develop National Program for Minority Enterprise.
According to Robert J. Yancy ‘The Federal Government and Black Enterprises’;
74, “This Executive Order established within the Department of Commerce an
agency – the Office of Minority Business Enterprise (OMBE) towards helping
minorities – ‘both in the areas where they now live, and in the larger
Commercial Community”, and Yancy mentioned that its special attention was
‘Economic Development Administration (EDA).
Financial Grants which exist in many parts of the Country today are not
nearly the business of many parts of the world, but we are likely to suggest
that the business associated Small Business Loans, that 406 management and
technical assistance (406 M and TA) are awarded by SBA. According to a source, President
Nixon awarded contract to both minorities and women on a Federal Level that in
fact, the attention that he showed to Minority Business challenged the
attention to the economic main event and Suburban Whites who were bemoaning the
large scale Americans entering small waters.
Yet in the Calendar years of 1969 leading to Richard Nixon’s removal of
U.S currency from Gold in 1971 - which has been for many years the argument of
Arthur Burns - one of the greatest money experts in American and World History,
SBA granted loans up to $15, 274, 173
Richard Nixon issued the series of Executive
Orders such as 11458…which sought to deal with the problems of minority
businesses and according to Thomas D. Boston, it empowered the secretary of
Commerce to use incentives anywhere available but like one Anthony Mason ‘Black
Capitalism; Rhetoric and Reality’, argue that Nixon may have authorized the
broad executive powers but did not specify which of the powers to use. In terms
of the Title I – D special Impact programs for the Economic Opportunity (OEO),
he placed the argument of how these loans for businesses would work, which
included Granting Funds to EDA, and such Special Impact Funds were not to be
squeezed (as it is now the case) by those in office in any capacity towards
their privately owned business however respectable. In theory, EDA; Economic
Development Administration of the Department of Commerce, was expected match Funds for investment in
the so called Public Works Act and in many respect, it was used to cover the
business grounds for small to medium scale businesses in Cities across the
United States.
There was also the ERC; Economic
Resources Corporations (ERC), but I - D special Impact Funds of Section 232 of
the OEO ACT. There is under this group; Opportunity Funding Corporations (OFC),
Housing and Urban Development (HUD), and the MODEL CITIES – PROGRAM.
The rise of the Welfare as
anti-segregation public policy concerned with Wealth distribution, carried many
of the ruled associated with equal taxation but left the minority Blacks and
others who were to benefit from employment due to structural changes in America
in the hands of others. The problem US is facing with 'rising cost' of Energy
and natural resources such as grains, metals, lumber and Interference from
International conflicts and growth of small sector.
It is true that the book conditions the rest
of the market from one market, that is what is happening in one area of the
market is usually telling more than what it is suggesting. There was no need
from all information available to the general public that the Real Estate
market such as those of New York would ever lose value, of course, this was
story from those unfamiliar with the City. For people who lived and died in
City for at least a very young age, New York is hot potato that was getting
brown and need to offload. In the 80’s in the Bronx, many houses were still
lower than 90 000, and was considered expensive. In some areas, all you needed
was a dollar for a down payment and then the show of income for at least 6
months. It was perhaps lack of foresight that shut many people from taking
advantage of these deals; above all, people were dying by the day and usually
in thousands by the State of New York.
It was very bad period and departures were common.
But after 1992, Bronx and Brooklyn
alone recorded the highest number of murders in one year, but from that time,
effective measures were taken to cut down the killings, many of which were drug
based, manufactured and distributed in the Bronx. However by the turn of the
1999, most of these houses noticed significant upsurge, there was hardly any
building within 300 thousand and unlike the 80’s were there was job everywhere,
the 90’s had series of setbacks but the house prices were steady north stream.
It is not the 9/11 that brokered the landscape but at least by the end of 2000,
most of the Bronx and usually expensive Brooklyn were beyond the reach of every
Americans. We might indicate the Manhattan has a reputation of sustaining its
prices but even in the 1980s this was not the case. Saving parts of downtown,
there was hardly any part of New York that did not offer affordable renting, in
fact Science District such 72- 96 street were half projects from a decade or so
leading to the 80’s, and further down to the 60’s, the only part of downtown at
least from eyewitness account and from pictures and from many of us remembered
as decaying trunks of the older cities, didn't offer the glamour that it will
inherit from the later years. Whether the drug businesses of the 70’s or the
80’s, damaged neighborhoods in New York will not necessarily support fact that
New York simply had as much problem as a place in recent times such as High
Point North Carolina or were not as old and dilapidated as Wilson Salem.
But there was the continued
intrusion of immigrants and exiting of migrants and there were those called
immigrants, usually first generation of some minority such as African or some
Indian or people who just arrived. The silly thing about New York the buildings
are not entirely wonderful, as such places like Stuyvesant with the old and
brick houses are usually considered with taste of architecture. It is exuberance of the City for nothing and
the fact that the transition strategy and engines of support for new arrivals
are very present that make it possible for people who flock the town, some
glamorized with Downtown plot their graphs for resettlement in New York.
If from practiced eyes that anyone
can take a long view at New York City, it is worth half the actual price and
going at the rate of the influx of wealth from mainly Europe and from parts of
United States, the City hardly supports new comers as it did before. When
Harlem with all its drug and druggist landlords and supers begin to price a
small apartment a 50% its previous prices, it is not only expected of all
asunder to check in or check out, it is a sign that the market was experiencing
an unusual volatility. The success of ‘Irrational Exuberance’ 2000, in New York
was from the fact that people did not understand why New York market was so
hot. There were no reasons for it; above all, the apartments were accessible
for the markets. Owners were willing to sell to whomever and in fact, until the
coming of Bloomberg who ruined in my personal view ruined the City, there was
at least 300 thousand apartments owned by New York City to be auctioned
off.
These auctions take places every
Friday at the City Hall until Bloomberg. Whatever may be the frisson effects
for the City Real Estate, there was always the underlining question surrounding
baffling everyone; where was the source of the money flowing into a City that
was laying-off people here and there. The question may have spooked the
interest of Shilling and believe it, he was not the only person writing about
it and like many people he failed to connect the rise of ETF market in Europe
and the money function of Euro to Dollars, which at the inception of European
union in 1999 and 2000, sent initial handles from Europe into U.S in peeves of
hundred through Investment Banks, for the price of the conversion of Europe
earned investors a small intrusion into the rich brocade of U.S Market and the
paper currency simply displaced Americans on fixed income. Overtime, there was
so money and so little time that the myths of an ever-progressive high earn
valued market of New York will continue. But it mainly for its real estate and
not as far the job numbers, to the point that many Americans would not
necessarily add the extra-ordinary impact of the Mighty Chinese on New York,
that the fact that nearly half of everything consumed and displaced in New York
was linked to China.
It was Chinese entrance to World
Market that shelved the no-show American City called New York from burst at
earlier stages, such that one also accustomed to China Town before 1990, will
hardly recognized the transformation which really their making. Bloomberg gets
credit for Bowery and for repaving West Side high way which from many years of
driving through, was possible to have picked the computerized faults of the
pavements. The road was shifting and the contours were hardly the same. In
essence, people would have continued on the West Side without knowing the
difference like Giuliani who did nothing. But this trite makes us you a citizen
of goodwill from New York Standard and from many New Yorkers, Bloomberg passed
high marks, but it is a sham. So was the
exuberance of its market….
Let us begin by looking at some of
the performances of the inner city America which has done so well and then
badly. For a likely start in the problem of housing and over staged real
estate, it is California in the U.S that ranks as one the highest level of
over-priced State. The large immigrant population expansion in the State of the
California from the 50’s through the 80’s was so breathtaking that the immense
resources of California which along with Arizona and Texas is a quarter of all
US natural resources, did not merit enough investment attention. It was the
houses and real estate which received the largest attention and it was due to
the flatulent population growth at a rate never before seen.
The houses were
built on the back on cheap immigrant labor and with the advent of movie
successes in California, it may have seem for a moment that California will
forever shoot through the sky. There was something else. The growth of the new
houses were traded not only to the highest bidder but to those who had the
credit to live on it. It fostered an atmosphere of dependency that when the
public began to look at cheap and fast lane of success, they moved to
California however expensive. The 80’s summed the attraction of the State –
particularly Los Angeles – and by the end of the 80’s, the house were simply
not affordable anymore.
Historically, New York was still by
price more expensive – to some extent three times more expensive than
California. A case in point would be the real estate of that of Austin that is
considered for appropriate reasons to be overpriced, to a point that it seems
that the children of immigrants now so popular without background on any
training have more say than study the City that will be facing a proverbial
rate of return and inflation in future market, has rent that is still far below
market rate compared to City of New York yet proven expensive in view of local
rate of return. For instance, a recent market estimate of a downtown apartment
in Austin is $1200, whereas a similar 1 bedroom or 5, 000 sq. feet office in
downtown New York is at least $3, 500 with far less amenities than Austin. But
is Austin like Los Angeles in the 80’s and 90’s considered a danger zone? The
question lies in the City of Chicago at the turn of the last century, that on
estimate between 1870 and 1900, it is on record that the City of Chicago which
after the U.S Civil Wars offered affordable houses and easy to find Jobs
characteristic of major growing Cities in the World grew from over 600 thousand
(630) to a million by the end of 1900.
Robert Shilling is from Detroit and
is popular for his book on why people are not always worried about the market
and about the possibility of losing the price value of their house or other
people’s problems when their house is sudden worth 20% or 30% more. The book is
called ‘irrational exuberance’ and the familiarity of Shilling with the U.S
housing mentioned that Real Estate in US in ‘2000’ was behaving like the stock
market in 1999. The importance of this exertion may not have been recognized by
the Public, but the Main Street is usually different from Wall Street for many
reasons, including the often cited dissociation of the rental prices from VAR.
There is nowhere measure of VAR that incorporates the housing index, for the
simple reasons that U.S housing Index is the very fulcrum of all Real Estate
and it is built for the future and a guarantee of wealth expected to grow but
like the U.S Bond market it can be sold and repurchased if possible according
to the growing demands of the market.
But emphasis on Detroit market and
the rate at which Shilling skewed over the housing problems in Detroit measures
a kind of attitude that was growing over Michigan. Was Michigan or Detroit a
separation of people only and mainly, or was a gradual expected decline of an
overnight Industry City that nearing its end thereby forcing Whites and better
informed others to make a fateful exit before the long dry season. Perhaps the
measure of subsistence of a town of educated elite and daring pedigree would
have seen that the broad reach of the town was not to be limited to a geography
that was contested, though the bitter outcomes of the racial profile and divide
added the bitter leaves to the process, it is still an unanswered question, whether
the departures from Detroit or what they call the White Flight was do the level
of stress from living with others, or that the potential for growth was peaked
following periods of stress and his presage a long decline. Of course this
question will meet an ultimate answer, for sure when a journalist writes that
older Cities were hardest hit during the recent recessions, we want to be sure
about what he meant by Old Cities.
In contemporary American history,
three types have since...being identified. These one, Cities that existed and
achieved the industrialization before the 1930's, and were destined to attract
more a share of the national Banking and financial Institutions, and these
includes New York, Chicago,...and the second types of American Cities were
those that emerged from the Conflict and compromise of American past, bearing
the stamps of the old administrative bloc but attending the heights of
Industrialization only gradually. There are others such as Detroit that
resulted from necessities and from the benefits of leaving close to the river
and from the well of investment from the within states. These states usually
had bright sparks at some point but was never a major player until the
necessities of war or the innovations compelled them to Industrial heights.
The
main point of this article is compare how these Cities either in terms of
depression or recession react to the problems of National Concern, that is how
some of these Cities were able to absorb the shocks of disinvestment of National
scale and how these Cities in the Third Rank are Cities that may point to the
future as they best defined the American Culture. Though the history of
American Industries shift from left of Europe to the South from the beginning,
but like we are eager to mention, that a place such as New York is reasonably
important in directing our understanding of how foreign interest could
transform with levity economies in situ of nearly every demand and supply. It
is not strange that with arrival of European Jews at the middle of 19th century
coincided with the up thrust of an unready vibrant City.
Yet more than New York were other
places of import such as Boston which netted at end of that Icarus Century as
much attention from immigrants as New York. Why does it now appear that it is
New York carried the lantern for such a long time, why in recent time, do we
find the same interest bequeathed to California and their Los Angeles, yet
where New York took advantage of immigration capacity entering the City
planning its future, some of these States saving Chicago that was saved by the
introduction overnight lending and CBOE as perforce by Milton Friedman and
Wife. There is nothing to learn about comparing Detroit to New York, but there
is a gap in the transition strategy of these towns, that a City was interest in
the present value of its living and attractive vise of segregation and violent
humanity, New York is riddle of the transforming presence of others with as
much hope and future will as guile.
There is then something to learn
about the failures that accompany the work of the Detroit born Shilling who in
2013 was among the heroes in Economics, that few would not wondered at the
brilliance of the Auto-City in the 50s and few would have imagined its abysmal
descent by 2000. It is not impossible to argue that the fate of the Motor City
was decided from the beginning, that it is also eagerness that must challenge
the assumption that White flights caused the Detroit fall. It is eagerness that
moves to a limit that the so-called flight would have served a best placed
example for those were left behind to attempt a cultural revolution, if not in
the immediate sense of the conditions but for emphasis education for at least
the gradual majority. These people did not also plan for the future, that in
spite of the strength which individuals from Detroit of assorted backgrounds
are known for, there is nothing truly origin to the area since the 1970's, that
the migrants to these towns were mainly interested in their own immediate survival.
But from Robert Shilling, we get a
sense of the changes in the market which exceeds estimate and Time Series given
the arrival of investment from elsewhere, and we are certain that there are
estimators that give right figures on the assumption of future estimate, that
the wrong figures may parallel a degree of comparative relationship between a
period of citizens acting in patronizing zeal and those of others, that after
their generation, revert to conversion of public wealth or property to private
use. This generation are usually lingered with the care that comes with
preservation, it means to suggest that the preservation of the self is directly
related to the corruption.
Based in primacy of the time, budget and graph
analyses of the preceding, we are relating the equal measure of expectation in
say Austin to the time series expectation of real estate profit to City
management, that these two measurement are not related by many stretch measures
the comparative gap between the Main Street and Wall Street, that New York with
at least 5, 000 banks cannot be expected after many years of productivity
perform below the expectation of Main Street and Wall Street. With the Internal
and External economies scale at the tail end of both markets, it is impossible
that much of the buildings in New York will rise almost with parallel to the
money that the 8 million population density of the City of New York can
generate.
It is the rate of return, internal
rate of return that should indulge the conscience of many economist, that as
much City of Austin is doing its best to keep inflation at the least possible
margin, it is shifted elsewhere where the City has little control. This
imbalance of wealth and income distribution is characteristic of a growing
City, which believes itself progressing with attention from migrant population
and new birth, adjust its demands of building by building more houses (the main
street) but has little or not enough Banks to diversify the investment
strategy, hence, such City is swelling on its cheese and without warning will
collapse in the nearest future like Los Angeles that is constant housing
demand.
There is no studies anywhere that these Cities that become great on
account of Citizens and indefatigable experts at work will toe the lines of a
successful economy – not unlike those in distant crippled democracies of the
world – these Cities must overcome several barriers to forestall episodes of
burst like Phoenix and then a depreciation leading to the periods of drug and
poverty induced ghettos which characterized Chicago and New York for a long
time. No, Cities do not have to become Baltimore or St. Louis, or Detroit,
which experienced White Flights and left to the mercy of the poorer classes. It
will be naïve not to mention that there are Cities may arrive this measure of
distributed development by avoiding pitfalls which the City of Chicago was
opulent in the 1900-1920’s and the City of New York from the turn of the 1800
where 5th Avenue was one parallel long and dual dusty roads.
The Major development in New York
came with the Gilded Age but in keeping to the future market of their present
condition, they reverted to City level investment with a view of sponsoring a
rate of return commensurate to local demand. If the trick of rate of return and
budget is the local market, it is a City’s opulence to International market
that guarantees its staying power which beggars on Austin to promote its
definition by charting the Index of products and companies based and chartered
through the NAFTA agreement, including compliance of Bank denomination such
NADBANK and lateral IBC, adding a small contingency of new created or older
existing Banks with ALADI, CARICOME and perhaps MERCOSUR opulence. Clearly
stated, the role of US oil and investment options through established
Intellectual Properties and Oil dependent States is what defines Houston.
But
to the extent that an index is a public property and incorporates material
cases of signatories pushing the gutter-barrier of clearly defined amount may encourage
more cooperate business resonance between a Bogota, Mexico City, and the
central states within the older and more familiar franchise. Majority of these
companies acting in these far reaching South and North American States are
placed through Banks in New York, given them international exposure. But there
are other ways of defining a market which we cannot teach, for instance the
short gap between NAFTA and the including proviso of a total North Atlantic
Coalition means political future of more than stated in the 15 year NAFTA,
leads to options of GATT, guarantees some chairs at NYC given the penetration
of U.S Banks and Insurance companies, and provides the listed companies reasons
to form estimates of the pricing – either Debt to earn ratio or the promise of
future delivery within the lines of the CURB or a CBOE.
What ended the problems of the
Chicago was the stability that accompanied its CBOE and its overnight lending.
In the opulence of NAFTA that pursues a future, it is only possible if profit or
gains does not marginalize on American businesses in California and in Texas,
which from spike in housing essentially force these major power houses out of
the manufacturing equation. It seems that Texas with over 2 trillion reverse
net gains is higher pedestal than Mexico and that California is just higher. It
must nonetheless be mentioned that these gains are removed in dollar terms
which is the operational single currency of the United States. It is not easy
to explicate that Mexico on a whole may be doing better than either State but
in so far as the economic future of both Mexico and the United States, there is
exception to accountability which the Index can provision and when the
questions of overnight lending may prove to perpetuate long term the varying no
border rules for businesses taking advantage of Cheap labor. If this gap is
tamed, we experience long term a comparison between Texas, New Mexico,
California and Mexico, whereas these States are integral part of the business
interest of the Northern counterparts does not follow that these are the same
in any class of business respect.
To the point that the whole sale
business successes enjoyed by Mexico in the last returning 15 years or at least
since the inception of NAFTA, is largely due to the collapse of California and
some other States struggling to survive that Texas proved an exception to
differ, yet Mexico was all the more the reasons. Lending a pair of interpretive
discourses from the problems encountered in the North and in many parts of United
States up to 2008 and beginning with the coming of the EU in 1999 and the
launching of Archipelago in 2003, it seems that the North experienced heavy
emphasis on buildings due to the cornered attention from Europe and littoral of
monetary emphasis which the bipedal money function of the Dollars to the Euro
obtained, leading to places to stash the paper currency. It is financial to
court the developments that come with industrial boom, especially real estate
which is only one aspect of the economy – that when we notice more emphasis on
houses, there is suggesting that money is flowing from elsewhere without
correlation to local returns (danger mark), that there is nothing really going
in that economy or within the sovereign demand and supply – (the consideration),
that investors may seem comfortable with long term investment in such
environment but may also be looking at an environment that is shaky on the
plausibility of wealth from savings to mutual funds where institutional trading
as a hedge for future take a misdiagnosed direction.
The Catch 22 here is that
the shift from all investment consideration to housing is not exactly a sign on
prosperity and progress, it is a faint indication of an economy that was
running on One Engine, for instance Austin, Texas.
There is growth and maintenance and
from taxes, that a Capitol City may derive from, but Capitol Cities without
growth in general State is a few step backwards. For all argument, the rest of
the world is not waiting for U.S cities to move green, they are looking to
replace the First World and are honestly looking to hear, ‘we’ve done what we
can’. Austin is well positioned however
to chart a different future as an example to all leading Cities in the country
and in the world. It is a City that is surrounded by the fortune of natural
resources and has successfully wrestled privateers from allocation that is
outside their tiers. But this is only possible using Federal Charter and there
are other State Capitol that has done similar deeds for its region and it’s
State.
As a region and under the protectorate cloak of Texas, the capital City
is a regional force but for all intent, Dallas ranks higher, Dallas is a
commissioned Federal Reserve and the Labor Commission administering the NADBANK
is based in San Antonio and not in Austin. But this obvious disadvantage is the
coming reason why a North Atlantic Charter has meaning in the region through
Texas and from all informed class of respect, Austin as a leading candidate. It
is past due to surmise that capital cities are not usually business cities, but
a capitol city that is approaching a million and the luxury expansion it is a
Federal contender for Indexes since it is independent of pressure. Anyone
familiar with San Antonio and Austin will suggest that San Antonio on the
surface is broken and less compellingly than Austin, but from all equal
measures of the Market, San Antonio is a stronger and perhaps richer economy.
Here’s why?
The future estimate of any useful
investment option is based on how well and easy it can transform the lives of
new companies from small based start-up to at least recognizable Small Scale
business by American Standard, and how well, these small businesses move to
Mid-Size companies and the duration for its maturation as an American
Conglomerates. The Second to size the weight of a market with future investment
grade is how well its older companies are surviving, that as much the Debt is a
two-face measure of Companies bottom line, it is returns on the investment by
these Super Class companies that gives a fresh measure of the staying power of
the existing economic base. The third is perhaps the most powerful – which is
the extent to which individual companies and market based assurance can be
obtained when a breach is reached.
In New York for instance all monies owed as
subject to scrutiny but when proved as judicially owed and considered money
that must be remitted to the individuals in spite of it all, unless there is
the so-called acts of God, which in New York persuade for the payment until the
last penny. The same plays out in Switzerland that all monies owed – including
from all referable and non-disclosed sources are beyond the confiscation of any
State and any group in Switzerland, and New York if not Chicago pursue the same
policies. Should a State – for instance Austin with little but expanding Public
Storage (Treasury) can perpetuate this holding, it levitates on the quality of
the market and measures the weight of international pressures such as IMF and
Basel I-III against established local foundations.
Based on the first two, it is
common sense to affirm that San Antonio is a higher economic climate than
Austin, that building presently underway in San Antonio is not really a
blessing but a cause. There is hardly part of Texas where small business more
support than San Antonio, majority of these companies arrived vivendi the South
America, may not fully known given the short falls of Ship industries and
business but may be due maturity in the lending 15-20 years – a healthy
investment measure given the longevity and comfort of Real Estate investment.
There are more houses are much cheaper rate meaning of high value than Austin,
but unlike Austin, U.S laws are not well protected and the progress of the
business are therefore secondary. In this guise, a consensus of what really
determines a business vitae for indexing, for these named association
performing in the States through the North American and South America by the
vetoes of NAFTA and associate are products of the definition which Austin may
offer. Austin as Capitol City must generate its own investment returns leading
to the comparative advantage to other parts of world, where for instance the
dying façade of the Monroe Doctrine may have lived its better days on a proven
plateau far from the ‘Satanic mills’ of Nogales with over 400 thousand arrivals
from 40 thousand in 1995 where laws are still not at ease.
Phoenix Arizona suffer from price
escalation, so also Los Angeles, so also Austin, may be fated to other problems
of North Atlantic market and NAFTA, may have started with the ingenious
tectonic shift from the Agro-basic economies of California triumphant on mainly
the resource based industries, was meant to tether on the verge of success and
was among the hardest hit during the 2008 financial melt-down, which I once
described as a kamikaze. When as Robert Shilling argued that the total
resources based economy such as Real Estate is yielding more money usual, that
the common sense approach to the cooling off the heat from the real estate
profit was trying to distribute the associable risk. But for fact that
irrational exuberance exhibited by the markets makes it impossible for the rest
of to see the danger signs ahead, it is assumed that we continue to bait on the
progress of the economy, continue to rely on profits from real estate even when
there are no reasons to believe it, to believe that the prosperity especially
when the building is over-priced, till losses set in and there is the bursting
of what seem a bubble.
The 2008 Phoenix was a classic
example, that the buildings continued to pile up and prices rose in spite of
what the market numbers are saying, and in spite of what the indexes (debt to
earn) were saying, the market kept rising because everyone was money till there
was a gap due to high cost of living and Phoenix and Los Angeles priced
themselves out of the manufacturing businesses, the businesses gradually folded
and relocated – most across the border where people paid 100 pesos a day and
senior officers of these companies paid 150 pesos a day usually spent on food –
and with these moves came the Jos losses in Phoenix and Los Angeles, then the
credit default on the houses and then a collapse of a once burgeoning industry. We are likely to maintain weaken the market
rate. One of the ways you can stem the anemia in any market it to remove the
boundary and lower tariffs. While there are interest groups that mitigate this
profit, it is through a marriage of convenience between several nations taking interest
in the United States or between its major Satellite states exercising and
executing similar interest rates, through permitting the exchange rate at a
scalable rate based on an equal and common consumptive item such as the Crude
oil, or through other means that could levitate on the so called Cheap labor
enjoyed by a seemingly poor nation to the rich.
The Credit base measure between
a Mexico, a Canada, and a United States, redeems the claim that these countries
or in this direct measure, Mexico has cheaper labor than U.S. No they don’t. It
seems that we can obtain a cheaper labor from Mexico or a less triumphalist
second-third tier based market given the exchange rate. The main error is that
the exchange rate is forced to depart the money terms involved, that it seems
only the behavior of advanced psychology of money to predicate that labor and
currency is to the least possible and to the least possible in numbers to
obtain the required measure of the price pursued. The reasons why there is an
influx of population from around the world to United States is not because of
fancy restaurants and chickens, etc, it is because the labor is cheap and not
the other way round. To generate money in say Russia using basic earnings
routes in US will leave you perpetually poor – and worse off over a long period
of time. Unless perhaps in Moscow which is the thumb in much of a third world
Russia and have no shame with that.
In Mexico, there is little life
left for those who attempt the menial jobs in US that can sustain a family,
even by comparison that you combine two jobs in Mexico and in China to prod,
you are likely to struggle for much of it under the same jobs performed in the
United States. In New York as they say, anything you do to obtain money –
(others say decent thing you do) is good business. You can literally whip ass
in New York and still make a comfortable living. To outsiders, washing toilet
is bad business and not fitting for a man or woman with bachelors, but in US,
you can raise your family washing toilet and bathrooms. This is the meaning of
cheap labor that it resolves around the thing we may do for a living within
cracking under it. Most Americans may be looking to do more compelling jobs and
general leave the dead end jobs to others, but the beauty of all, is that an
exchange rate (the market) corners the advantage of cheap return in one market
in total different circumstances. The beauty of comparative advantage is that
an equal measure of wealth from cheap labor is a function of price and price should
generally reflect the market and the strength of your economy. It is now how
expensive a building is that makes it good.
The issue of common will reveal how less attractive Mexico market will
look when the currency is closer to base 1.
It is not how much you pay for an
apartment that you rich. It is a product of the prevailing market conditions
and barter between the two of you, but on the whole, when prices shoot ahead of
the rate of local return within a sovereign demand and supply such as Austin with
little support from elsewhere, your market actually sucks and you are doing
badly. Case in point, in New York under Bloomberg, there was an abnormal
increase in prices of building, which is not unlike New York but this case was
different. The problem was that the City’s investment goals which included
deliberately building model houses at deliberate cheap and ridiculous prices,
forced the spike of houses to check its income tax prairie. The New Mayor planned from day one to execute
200 thousand new apartment with model statutes at a pre-priced rate and
promised to recover the 300 thousand other apartment in the City, forced the
prices to freeze and to some extent head downwards. Nothing has changed, what
has happened Real estates controlled by a few companies and banks was delivered
as an engine for immediate wealth acquisition to wealth from those comfortable
with long term investment. These fixed income earners are not easily likely to
lose their priced investment, to a point that the City was determined to use
lottery to auction the building once completed. Such bids may seem unease but
then there are more than one expect of the market which must be played out, one
the Wall Street that believes that all prices must go up and now, and the Main
Street that relapse to Bond market and random walk, for if the bond market on a
four tie is not in the money due to high demands from the propagation of profit
from housing, the Government may not be sufficient enough to redeem its bond.
The market will be shooting above the crashing in other telling index, to a
point that the institution that constitute 80% of the market will perpetually
milk the small investment from the Americans who move their resources from
savings to mutual funds or other resource based IRA account.
John Cassidy (2009) in his book
‘How Markets Fail’ tells us a story about this housing bubble in New York and
about the NASDAQ. That in researching his book, that we went to see his friend
by name Richard Dallow in Long Island whose families has been in Real Estate
business since 1951 and he showed but expressed surprise that ‘…home prices had
defied the NASDAQ crash of 2000, the economic recession of 2001, and aftermath
of 9/11’, it was not easy to link the digested breakdown of U.S financial
regulation with changes at the market place.
If there is any link between what was happening at the market and what
was happening to the Real Estate, it would have found time to materialize in
discouraging investment from outside.
But the hot money from International Market continued unabated and the
hot Crude oil spike which bifurcated The Euro created problems for George Bush
and there was hardly anything Americans were able to do since the higher the
price….We are interested in the impact of European Economy and how it finds its
way into the Americans, we are also looking at the trouble that Americans are
generally exposed when there are short falls in the Market such as housing. But
the reserve index of high and ballooning house prices are often a précis for
larger problems elsewhere, and we mentioned the incident of the 2008 market
expansion at the same the Feds were contracting, that the market rates were far
ahead of the estimates and a burst was hardly avoidable.
Sidney Weintraub, Drusilla, Mexican Example,
the Brazilian Example…currency convergence of the BRIC, and the large gaps in
Brazil primary and secondary market. Why Russia commensurate economic blockage
and its lack of presence in International Markets (Third World) saving for high
profile structures, its absence in Common Market such as the primary European
market is both a Short Term and Long term damage to the proven market value
system applied (AGE) /CGE to Russia.
Market models and recovery process.
Credit versus Momentum based…
If we show that lack of subways in
Detroit was perhaps part of that ambitious confidence that the town would have
belonged to a group, it is not intended to reprieve the past mayors and
governors for failure to adjust to the same momentum that was evident in the
Chicago and Milwaukee. These areas may have benefited from their mass transit,
may have benefited from their railroads and Amtrak, but may also succumb to the
pressures of economics reliance on a city where if not for the sustained interest
on the International society of a place such as Chicago which has kept up its
growth and which now mounted by its 3.6 million residents. It does not means
that the categorical separation of size between Chicago as at 19th century with
close to 600, 000 and Detroit of 60, 000, should suggest that the rise of
Detroit’s numbers in the decades leading to the World War II to almost the same
number as Chicago – if not exceeding it, brought bring in the problems of
migrations. Rather we rear-view this period with emphasis on what drew people
to the town in the first place, that it was jobs from the facts that Michigan
may have rich in other things but was like Missouri not exactly well developed
and from International meaning of the City of Detroit, Michigan joined the
elite class.
There is therefore pretending that
the poor performance of Mayors after the 1970, was not so much a problem of
land and space which in terms of Bohm Bowark, whets the appetite on the
probably recipe for recovery, that rise and financial reconnaissance of Detroit
existed from the position of ‘loanable funds theory’ where securities without
respect to ‘stock’ and usually a mean for International Markets, reverts to the
‘flow’ the second bias associated with ‘exponential smoothing’ the capi within
the range and therefore within the long term Investment Category. The obverse
interpretation of this kind of linear progression is not that dissimilar from
the Neutral and no risk, a form of capital on capital on the large and
guaranteed gains with even the slightest augmentations of even the nearer
1-2%.
This financial oligarchy measures
the predetermined causes and effects in any given market, and in spite of the
bets that will accrues from a Motor industries, it is the ‘flow’, the securities,
and the eventually the Credits of business and the company that spills from
Banks and over to Wall Street. Cycles as cycles go is no more than what is, a
problem that was not unlikely to have arisen from a labor intensive capital
markets, for sure, there was no way of denying that the loop regression mean
for labor as prices grow, will not yield a regression or a concavity from the
price and demand convertible, that a small shift from any levels of the
equilibrium as for instance the great demands of the War years, that
equilibrium of those decades will not maintained, will shift to demand and
therefore combined results from price, and will in end, lead to a form unstable
equilibrium interspersed by disequilibrium.
We can suggest that if there is a certain
form of brag index that is not an isolated term but index of numbers, we regard
that Misery Index which in spite of Schumpeter nowadays eat ups every other
information on Detroit in the decades following the World War II till recently,
that it is not to be missed that those who controlled Detroit’s ‘loanable
funds’ where probably handpicked by financial Cabals and by moguls of import,
and by family Thrust and Foundations, either going far back to the Gilded Age
or the era of their sons and daughters, that these financiers either from US
North here or from Europe, were perhaps a deciding influence on the formative
financial institutions of Detroit. If there are other investment groups that
meant anything it will certainly be the group associated with the Pension
management, these group needed the added growth and addition of workers to make
the returns of their investment of certain guarantee. These financial tigers
needed the added garments of local guarantees and going by the way businesses
were done in the 19th centuries, there was the issue of implied psychological
velocity delivered through the consciousness of class – however immoderate -
and perhaps racial parity as reduced to the state of majority.
By all comparison, we may note that the issue
of credit or securities and therefore debt is really closest to the State of
Michigan as whole and in active part; it was debts and securities that
determined the expansionary clauses of Industries under the tilt of Detroit and
workers under the belt of the Industrial Giants. The equation of land to
production is disservice to the envelope circumstance of the price and labor of
Detroit, since when Demand rises, there is a new expansion necessity, and the
expansion on a prefigured or preferred market or stock, do not always migrate
from ‘flow’ in linear one crop industry. It was therefore ridden to compulsive
buyers attitude to the trade fairs as directly opposed to product delivery in a
place such as Detroit, but the consideration of Credit worth and the qualifications
that is partner with makes it impossible for disequilibrium to make sense or to
count since the estimate of one value in Detroit will be determined by the
governing dynamics in Detroit and it was to be measured along the ‘gamma’ or
quanta of a production to labor. The transition of isoquants from vitae to
another is best gauged from cost to production – that turning the labor to production curve to the right, which
is usually y, and by implication, it needs loading force almost equal to the number
of industries.
Here the Angels of the business or
industry would be as good as they come in choosing who has a future in a debt
ridden industry and who has not. The indefatigable obstacle of race or
forbidden social rancor over others may have resulted from the scarcity of
work, since labor in a direct to base to City such as Detroit was ultimately an
institution. There is no doubt in the aftermarket placement of a say Ford Cars
at Wall Street does not revive the disequilibrium, but to the degree that
individual choice as equal to one or one extreme, does not count in an industry
based society or City like Detroit, - which the likes of Karl Max inveighed
against, only lead to the near inevitable conclusion that it was the Industry
that decided for the workers.
The point is best observed by the controlling
influence and resistance of 33, 000 Auto worker for instance that worked out of
their work than allow 4 blacks to enter the market as co-workers. It would mean
to count that the possibility of others sharing other opinions otherwise the
presenting case of numbered workers, would have mattered going by the guarantee
of Credit which the Company enjoyed and which in pretense of a class enjoyed
over others such loyalty is assured.
This rank and file conditions prove serious cog in the wheels on
integration that at the penetration of the Society aghast the Welfare and the
voting rights, it shattered both for Blacks and Whites, the bounding tie of
their peculiar interests.
This should be made to perhaps fit
the conditions subordinate to a cycle or perhaps a business cycle, that sales
are made and money made in any vector quantity of either linear regression of
labor to product or demand, or the multiple regression associated with price as
from Internal rate of Return as rate of return is conserved by the oddity of
national rate of return as for instance Interest Rate. The poor argument is
that the conspicuous shift in gaps associated with say pension is said to
revert to the mean of Interest Rate going forward, to the degree that the
material value of a product or a state of economy going forward is usually a
shed from the present value.
The theme of continuum from a Frank Knights
limited options as well discoursed by Walfras and as well buttressed Bohn Bowerk,
is such that present demands of past value is always a higher price and present
demand of future prices such as Inflation etc, is always a better and higher
option therefore discount rates are marketable options. This will only satisfy
the demands of a Walfrasian bi-polar equation separating price which has no
history hence a victim of liquidity or within the precinct of ‘liquidity
preference’ theory from the scalar more preserved trend based ‘Loanable Funds’
theory in spite of the seasons.
If J.R Hicks (Value and Capital
1948, p.154 -155, 160 – 162) argued that the two similar components are
probably the same and may be reduced to ‘convenience’ it is missing point about
the evolutionary market construct, that one may seem like the other only in so far
the ‘I’ for individual choice is not satisfied or obeyed in Von
Neumann-Morgenstern utility functions, where the individual is more a less a
quadratic of his or interest within the four cardinal points of
consumption….Hicks would have scored several points in Detroit has he showed
that in Industrial based economy reaching optimum end, there is the total
absence of individual choices with ‘flow’ based
charts and therefore a disparity exist between for instance a ‘stock’
based ‘liquidity’ driven Chicago from a ‘flow’ based ‘securities’ Detroit or in
comparison, the Silicon Valley.
Joseph Conrad adapting himself to Klein tends
to accept Hick’s equilibrium that both ‘cash’ and ‘securities’ may not
necessarily determine for instance rate of interest.
And according to him, this
rate “will have been determined already in the supply-demand equations for good
and services. What the “cash” equation (or, alternatively, the “securities”
equation) adds is not a determination of the rate of interest, but determination
of the absolute level of prices in terms of the numeraire system.” Conrad went
on to discuss ‘Notes on “stocks and flows”, in monetary interest Theory’, by
William Fellner and H.M Somers as they appeared in the Review of Economics and
Statistics, where these two argued from the standpoint of alternative economic
pricing and monetary policies.
There are several models which may be employed
in any depression economy, one of Ramsey Model, which emphasized the ‘quality
of capital’ suggested after Frank Knight and Frank Ramsey where the existing
buying power of the currency either through accumulation or a function of the
existing market, may widen the investment choice of the entrepreneur and the
arguments which feeds from this is that the width between the FEDs rate and the
power parity of the Capital Funds markets may be narrowed with due respect to
the ‘quality of capital’. From a wide angel, it may seem to suggest that rates
and prices are not exactly correlative, and their emphasis on ‘quality of
capital’ leads to investment decision function based on necessity of the income
class, that is income over capital (?).
The second monetary model or demand model is called Keynesian Model,
which has to do with the classic ‘quantity of investment’, that is market growth
is primarily driven by Investment. This kind of model requires what we have
mentioned earlier, precise and direct Government involvement.
There is no doubt
that the economic resurgence of any market and the primary interest of any
economy is to grow the market. How does the market grow, or at least how do we
grow the economy? In some sense, the practically application of John Keynes
theories, goes the longer distance of enabling the society to meet short term
goals, that is by injecting money into the system and particularly in the
structural ends of the system, we may seem to force the consumer confidence to
spike and as a result there is increase in spending and there is demand for
employment. Of course we cannot challenge these two active models, although the
Ramsey Model point to economic forecast and Ways and Means of reducing the
shocks in the system, that is if Shocks occur, it may not be a surprise and
there is a long term normal condition of the business associated with ‘quality
of capital’.
In every way we look at it, it is the Banks that end of benefiting
and in reaction to the improvement necessary for a society; there is nowhere
‘quality of capital’ will save a depression economy or any market in the slump.
There is a better application of the near classic model of Ramsey and Knight,
and it may have to be useful in a third world or what we call International
Market, which is determined at times by its emphasis on one or two natural
resources, and may prove itself useful when there is the need to move a City
into new avenues of prosperity respecting the Normal bias of the given demand
and supply.
We improve on Keynes model as a model that is
preferred in emergency when measured in the context of Ramsey, the natural
condition of human society it exist by measure one of inevitable cycles, and
that each with the beginning of each cycles welcomes is heralded by an era of
easy money and a period of relative relaxation of credit. With this period,
there is growth since the general business of growth involves a future, what seems to have worked today
will in future face a certain decay, that a building erected is from auction
date half the life and for that investment rise as well as societies, and they
also slump for other reasons going forward.
There are times that changes in any
society exceeds normal bias, and then the period of high activity for instance
a sharp but not Tangential uptake in any graph and for no apparent reasons,
usually face south even before the end of the trading day. These movements are
sometimes caused by negative externalities and economist label it shocks. It is
shocks, part human, part other that create the ‘range’ of activity, and from
shocks we measure volatility and from volatility we form estimates of market
performance or what in graph network is also known as ‘variance’.
For that period of depression, at
least of general level is usually an indication of structural decay which is
different from time related decay also called the death or end of a market
cycle. And here on, the economy
struggles from old age and needs to find new Ways and Means of doing business
or at least tear down the rotten structures or renovate existing ones. This
kind of classic problem is usually shifted to Structures and/or Technological
assessment that alters existing forms of equilibrium. Such decay may also be a
product of Equilibrium arrived in any market, though the micro, macro and
distributed approaches to modern markets leads and renews the argument that
Equilibrium is achieved – though logically – as Debt or Investment to demand,
Ceteris Paribus. But from the Plateau achieved in certain markets for instance
Silver transitioning to Gold in 1870 and the World burst and the Depression that followed beginning in
what we historically identify as the Vicksburg train incident and the two
American generals in Georgia, it meets be mentioned that Fischer Blacks
theoretical on consistent disequilibrium requiring new input from the Central
Banking as no different from central organizing bodies, on which Milton
Friedman (proponent of cash injection) inveighed against citing an older
argument by 19th century Historian whose similar argument is ameliorated in
Fisher Blacks supposedly inculcated assumptions that the nature of world market
is constantly in disequilibrium.
But such theoretical about
Disequilibrium measures the that supposed shift from the center as a shift
associated with spinning out of orbit leading to no man’s land, whereas
Equilibrium is meant to have achieved with due respect to central organizing
orbit….
Such misinterpretation would not have logically explicated the problems
of Stagflation associated with deaths in equilibrium or periods in Cycles,
since it seems clear or at least plausible that General Equilibrium is to
infinity making it clear that Equilibrium is relative to external factors (the
opposite as measured from Michael Phelps opposition to Phillip’s Curve is that
no market is that Homogenous or self-repairing), and without externalities is
Equilibrium unredeemed by value and is generally a Behavioral Plateau as in
1929 crash, which is heralded by disinflation and depleted aggregate demand,
and possibly a descent or an implosion like foreign currencies without low to
high interest rates.
The consistent structure of general
disequilibrium is consistent problem of unemployment or underemployed, however
well Hicks who is one my favorite economics or Piguo with due respect to
Welfare delimits hiring from the Intermediate Path of higher skills demands,
disequilibrium is not in this case directly linked to Equilibrium, and
Equilibrium is For that the Keynes
Model – prone to liquidity and taxes hence the ‘Liquidity Theory’ - would be an
important instrument in forcing the economy to bounce back or close a gap in
the economy or achieve equilibrium. The immediate impact of Keynes theories
made it quite popular and is applied from nearly every corner global macro…
But from sources available, Keynes Model for
economic recoveries is not always the answer and when we begin to trickle down
from general to specific areas of any market, the narrow gaps between the three
major models give way and Keynes liquidity measures may actually prove a
disaster. Debts are one area that we may
not take for granted in gauging the success and triumphs associated with
Keynes, the other is not exactly different from Debt and it is Securities,
especially when there is a spike in mergers and when there are international
conglomerate. It is considerably
accurate that Obama’s assistance of Automobile industries proved a lot of
harvest, but the total wealth of the Ford Industries for instance or General
Motors as the case may be were not blimps on the world markets, the large
wealth that gave weight and meaning to Ford and General Motors were shocked to
volatile disasters by the strategic depression of their investment options and
shares at the automobile industries which exiting of these companies to Mexico
with Pathways to North America essentially provisioned for.
If for one, a company’s stock is
for instance $200 a share, and during the disasters of 2007 and 2008 – which
was really a panic - and the company suffered reversals mitigating a shed of
90% value of their companies’ stocks, we may be looking at a free fall from
$200 to about $20 a share. Some would argue that the opportunity to enhance
investment is therefore for any income case, but then the Shadow Banking of
pulling a mutual fund from company’s balance sheet and exiting a company’s
toxic assets will force a direct slump of the shares. To the degree that Banks
played substantial roles in jerking the systems to its knees, prove of that is
that the total amount of Americans who form a quorum of Wall Street Investment
is about 20% and the rest of the resources at the Wall Street are usually fed
from institutional traders. By that as we shall eagerly examine, the 2008
crisis may have started with Debts and the 1.5 Interbank Libor gaps, in 2008, but it widened to a large extent
only by one possible kind of action, the Banks.
Of course the themes from liquidity driven
market Depression away is different for the circumstance that warrant the
Depression or Crisis driven by Debt and Securities. For instance the last
economic melt- down was in many ways than one, a form of credit and a crisis of
securities. To restore the health of the economy, the FEDs and the combined
efforts of the U.S Treasury, had to stem the tide of damage by providing a
balance sheet for Banks that were considered ‘Too Big to Fail’ and the total
amount made available to forestall the damages to Banks was in the tune of $10
trillion, excluding the resources from Europe. There is no doubt that Debt
Crisis hurt businesses, but it seems that providing $700 billion for the
economy was not match for the Trillions to stabilize the Banks. The returns of
that investment was somewhere between 14 trillion on the mark to 16 trillion
for projected earnings. In reality, there is a mistake about a place such as
Detroit, with much of the money thrown to the City as a way to keep the market
going, rather, we may occupy the minds of all asunder with the problems of
Security and Amortization of Real Estate and the problems of Savings which the
Citizens do not really have. How can we make magic the outcome of the society
that was mainly and ultimately based on the production of durable goods to meet
equilibrium at national level when the rate of returns of Detroit and the
conforming savings gap is well below the national average?
The Third model is called ‘Swedish
Model’ which emphasizes ‘Quality of Savings and Investment’, and for common
reasons of the evolution of these schools, it is advisable to retain ‘Savings’
along with ‘Investment’ which within which is a metered contrast to Von Mises
and nowhere dissimilar to August Hayek who emphatically considered Savings as a
form of Investment, which others - particular Fisher reduced to a prove of
income + consumption, and from which Joseph Schumpeter proposed the idea of
necessity or demand, that a new necessity should warrant constant investment as
production equals demand, else, savings over time will suffer from Inflation
and then worthlessness. Although Schumpeter argued along the lines Von Mises
that a consensus of value is better achieved through a measure of gold,
torching also the inflation that whipped off savings in Europe at the end of
the 19th century, he entered the Adam Smith and Leonard Wafras argument that
money was currency labor and (). But the rate at which Gold is measured as
money was proved old age after World War I, part of the reason being that money
in so far as product for cash society is concerned –, even as defined by Karl
Marx -, and money respecting utility is entirely futuristic.
From productive curve, the Third Model is the
Sweden Model which is also the ‘Loanable Funds Model’ and emphasizes would be
placed on ‘Eugene Von Bohm Bowerk’ and the punctuated production estimate and
in the attention given to electric industries, we may sponsor a kind of
comparative analyses between California electric car industries from 1990
through 1996, a kindly measure of what is expected on the efforts by current
administration, and what Roles the Banks and Federal Reserve can play in not
only restricting Detroit but also important areas that are similar in
comparative…. It is not strange that the Austrian School of Economics which
should not include Bowark in spite of Austria been his home country, would be
invoked in the attempt to dismantle City of Detroit, and there are lots of
reasons why others plans may work, but for the fact that even as we write that
the City of Detroit is occupied with issues of Pension and the problems of
Debt, that it held of life by Government programs and probably little else, we
may yet indulge our minds with the pressing statistics that over the last 50
years, the idea of cash for assistance has more than had its share in Detroit.
If it was not working may be due to the middle management and other loopholes
in the system, and the systemic problems of resource allocation and endemic
problems of corruption may not entirely combine to strangle a City over half a
century.
The attention is placed on the wrong issue and the idea of spending or
innovations of liquidity as practiced from the earliest incarnations of the
Black Mayors and Democrats till now may have actually been a wrong and perhaps
dangerous diagnostic. Simply put, it is clear that liquidity in poor
circumstance attract other things including poor returns of actual goods and
services but a high rise in illicit drugs and criminal activity. By that we
widen the door on the merits of Structural change that is not mainly based on
return to a past, rather to innovation and to questions of Credit either for
business and Credit for other matters. We may have highlighted the negate
truncation of the problems with Chicago economy, that aside the Subways are an
effective return of investment tool, there is the CBOE, and a mercantile that made Chicago relevant in the U.S.
society but also in the World.
There is a chance that a
reformation of the Banking and City Reserve Institutions of Detroit towards a
more complete and public records may be a first and necessary incentive to
offer new life to the Town. In essence, the problems of adequacy and the gaps
in payment or Defaults are not just a decision function of the City Government
but from Debt resources are means to future, it may create a pool lending
institution towards a challenge of the negative environment or concave from the
reaching economies of Chicago and to some degree Milwaukee, but the identity of
the Cash Strapped town should from automobile Index that is 22% of total
receipt for U.S play the other role of forecasting, the behavioral tendencies of the American consumer from
purely Debt to earn stand point. The view will mean the Detroit going forward
is either to face further and constant decay largely to unstable disequilibrium
of immediate citizens or from the mark to market economic reset of an aged
auto-mobile industry.
The attempt to abrogate the future of receipt and payment
by crashing the form of exchange between creditors to Detroit and Detroit, as
offered 10 or 1of 10 by the current Mayor, merely corrects an impression that
skidding is from here irreversible. Yet we may suggest that fraction of the
total Detroit demands or the decision power of Detroit going forward is not
without partial equilibrium of its past, that means that the skid will likely
continue unless as they have worked on, that the Pensioners are willing to take
a breather or cut inception amount going at least a few years. There is the
combined resistance from combined spending that means to argue that the funds
from the Federal Government or the assistance offered today will not
manufacture any new areas of Growth for Detroit, since the Funds or Program are
not tax deductible.
It therefore means that as far as
other inducement (endorsement) such as Food Stamps should be taxed to the
pocket of the City of Detroit. A fair taxing on the immediate profit is not
inadvisable, but deal with problems of Credit, incentives of all types may
create the opportunity of credit and savings. That is to suggest that Savings
would be compulsory, especially for all classes of respect acting and living
with the demands of Federal Assistance. It is strange that a $10 Trillion
investment on the economy was wedged into the system by the U.S Federal Reserve
and by Treasury in 2008 and 2009 only, and the problems of housing refuse to
abate in Detroit. In seems that the attention once more is placed on the wrong
eggs, for If 16 Billion was the cog in the wheels of Detroit the ends would
been served.
But U.S moral chest is not that solid, that a moral hazard of
Cities under dubious leaders that seem feed from decay of their societies will
be among the first to invent reasons why they also need to be bailed out, and
all this project the U.S constitution in the light on restrictions of the
Federal Government entering local market such as Detroit. U.S Constitution does
not bail out Cities or States, it simple allocate fiscal resources to such
states in terms of disasters or Acts of God (Nature) such as Hurricane Katrina
and Sandy, but then the 1931, 1936 accords on FEMA, guarantees Insurance
protection at least up to a certain level.
For sure, debt is debt and there are lots of them in any society that is
based on Manufacturing, it is the very psychology of the Industrial Society;
it’s very sickness. But the lack of
placement of interest and direction of resources for the City of Detroit and
its Welfare… means that the City needs to borrow more money going forward. It
needs to transform itself but going forward, it has incur the same problems
since growth will attract more Americans and on. It may have to accommodate its
importance along the lines of a City Reserve System which need to demarcate
itself from Michigan if all possible (?).
The Beginning of the Detroit
Question should not be on why the City failed but how it failed. It should
incorporate the impact of strategic starvation which the least conscionable
indigence of Michigan is likely to discover, that it tends to pattern out the
argument that accountability is Detroit’s ultimate problems and the problems of
growing an economy goes beyond Government spending, for sure, International
Economies or what they may call External Economies of Scale deal a great hand.
If Detroit entertains any hopes of returning to an International Standard, it
should answer its own question through a bifurcating of its status of Detroit
as City in Michigan to a City that account for itself of a larger sea of World
Market and not just in production possibility but in banking and
Insurance. It should be willing to rent
its economic landscape to nations outside those of Europe. To sponsor an U.S
interest in the environment, the case of the Study of the City consider its
definition as a demand and supply within Demand and Supply.
The drug rackets in the City and
not much else in Michigan is not by accident, poor and struggling Cities such
as Detroit is usually a pool for International Drug money, as such the Police
should not looking to over the current problems without increasing its numbers
and without integrating the State Police. This does not mean take over. There
is no doubt that tight credits and austerity measures which is now applied, is
designed to balance the budget, but like many economist R. T Naylor and Joseph Stieglitz have argued separately that
undue austerity and lack of funding and lending exercises, usually stymie long
term investment interest of business communities and companies or individuals
with business capacities. They also mentioned that most government usually
resort to creation of bonds and in the place of relieving the economy of the
shortfalls of economic growth, it creates the problem of fiscal management and
tax concessions.
Above all, we have to consider the face of U.S
military in Detroit, that the U.S military manufacturing is relatively flat and
that farm and pay role taxes gives us an idea of a state that is still not very
serious in promoting business from within Detroit. He mentioned that President
Richard Nixon proposed “Family Assistance plan would introduced a “negative
income tax” – a guaranteed minimum income for all.” It would have eliminated
specific disincentives to work and made unnecessary a welfare bureaucracy to
determine eligibility and monitor compliance.”
Negative income tax faded…Detroit
with 18% unemployment is an economic depression. There is no denying that Banks
have a lot to do with the crisis in these areas, not only for Debt which pass
from one Debt Collector to another but for been able to repackage...U.S economy
for Neo-Hamiltonian transformation; (a) " A wartime income tax" , (2)
"large-scale borrowing and debt security issuance in excess of $2.5
billion" (3) "a new national banking system" (4) "a massive
expansion of the currency and a shift from Gold to paper money - the famous
greenbacks"
For all we know, Atlanta was the
center of Americas Federal operations and the creation of the Hartsfield
Airport which is supposedly the largest airport in the world employed up to 30
000 persons in 1981 alone and approached a billion dollars of payment to these
workers. In essence, it took a powerful of cooperation of the State of Georgia
and the ambiance of Jimmy Carter to make at least a demanding expect of
overnight miracle to be possible. It seems that in other to compare the Detroit
Question to the questions of Atlanta, we may consider the transition strategies
employed by these other Mayors, and why then and as much now, the Ghost of C.A
Young still hunt the streets of Detroit. In numbers; both in projects and in
voting blocks, and in number; both in negative aversion of poverty and the
culture of prosperity from the economic challenges, there is no formal estimate
of the gaps between the largely black community in Detroit and the State of
Michigan that simply would not take part in that economy. For it seems that the
rest of Michigan has no fared any worse but from experience of Baltimore and
Maryland and neglect of the Baltimore which has managed to barely hang in
there, we can draw the first blood from Detroit Question that perhaps Michael
Moore was not wrong, that it was not for lack trying that Detroit has
constituted a problem that it was the greater portion of the blame should be
placed on the State which looked at Baltimore as a town no more than what is
was, a black land economic environment synthesized from larger and constituted
state.
But the prove of the riddle is the knowing, and by that we look at the
failure of Young himself to adequately train the young Black Generation of his
time, many of whom were indeed struggling but would have done better than
the current issue of ‘functional
illiteracy’. It is not to be missed that hate that the years of separation and
economic apartheid which may have resulted from protected economies in Michigan
as from Europe created, to the end that even Federal and State projects were
awarded to common interest others, who were set above the sea of blacks and
Indians. But again in the year of 2013, as the instances of the problems
regarding a Black Crowd without adequate financial institutions such as Banks
and Insurance companies, there is a recalling of the older years when finances
followed one economic pathway.
WPA, WIN; work incentive program,
Comprehensive Employment and Training Act (CETA), JTPA; Job Training
Participant Act, AFDC – unemployed parents (AFDC – UP)…..
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