The news of Detroit filing for Chapter 9 bankruptcy protection once again proves that the Three Mores Principle applies in a lot more places than just growing or turning around a business. The reason? Governments are businesses.
What does a business do? It sells something to customers. The customers pay for what they receive. Both parties get value.
Now think of a government as a business with something to sell and customers to buy it. What they sell is police and fire protection, parks for recreation, schools to educate, roads and streets to get around, waste disposal, water and the regulations of other businesses such as utilities and the scores of things they license.
Who are the customers? We always fall back on our own definition — The customer is the one who cuts the check. In the case of a government it is the taxpayer, citizens and businesses.
So why is Detroit in such dire straits? The customer population has been declining there for years. (The First More.) Detroit can’t get the customer to buy more (The Second More) because incomes are down, unemployment is up and the quality of the product (protection/recreation/education) is shoddy. They can’t make more on what they sell (The Third More) because that means raising taxes which sends more customer toward the exits.
It is an illustration of the dynamic nature of the Three Mores … and of the relentless pull of gravity as a business (in this case a local government) begins to CTD. (That’s Circle The Drain for our new readers.) To escape requires a drastic move. And we have one that hits two birds with one stone. Send undocumented immigrants to Detroit. Hand them the vacant and abandoned land and buildings. Tell them to build communities. If they do it within 5 years they are granted citizenship and the rest of the country gets back a thriving city. Crazy? Maybe. Worth trying? Anyone got a better idea? Let’s hear it.
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