With the economic downturn (decline) over the past few years, we’ve heard stories of people losing their jobs, losing their homes, and losing their way of life (how they live and their pattern of life). Imagine that happening to an entire city.
That’s what happened to the city of Detroit, Michigan. It is the largest city ever to declare bankruptcy (officially state that they are without money and cannot pay what they owe). In the past, Detroit was known as the “Motor City” because of its automobile plants (factories) that produced many of the cars sold by American car companies. With the decline in sales of those American car companies and with the offshoring (sending overseas) of jobs to factories in other countries, the city of Detroit is no longer supported by car manufacturing (making; building) jobs.
A similar phenomenon happened to the town of Gary, Indiana, located about 30 miles (48 kilometers) from Chicago, Illinois, and known as the birthplace (where he is born) of Michael Jackson. Once a town supported by manufacturing jobs, it has been in decline (slowly getting worse) for the past 50 years. In the 1960’s, the city had 180,000 residents (people who lived there) working for the steel (hard, gray-colored metal used for building) industry (business). Today, there are fewer than 80,000 people living in Gary and one-third (1/3) of the homes that were once lived in are empty. The empty homes are a temptation to vandals (people who damage property for fun), many of the homes being set on fire, which produces a hazard (danger) for other residents.
Now, the mayor of Gary, Indiana is trying something radical (extreme; very different). Empty homes that have been abandoned (left, without any owner) not only mean possible danger, but the government can’t collect taxes on the houses, taxes that are used to provide public services. To try to remedy (fix) this situation, the mayor wants to sell empty homes for $1.
To buy a home in Gary for a $1, you’ll need to meet some requirements. You have to have a minimum income — for a single (unmarried) person, that’s $35,250 a year — and have enough money to repair the home and bring it up to code (make sure it follows building laws) within six months. If a resident can do that, they will own the home in five years.
This is an experiment to see if cities can be revived (brought back to life) by turning empty homes into revenue-generating (producing taxes) homeownership that brings and keeps people in the city. Many other towns in a similar situation to Gary are watching to see what happens. Perhaps there is a lifeline (rope used for saving lives) for dying towns.
Has the government where you lived tried radical experiments like this to help dying or shrinking (becoming smaller) towns?
~ Lucy
Photo Credit: Gary Indiana Fifth Ave-Broadway (S Shook Collection) from Wikipedia
Hi Lucy,
I have heard in the news about Detroit and other towns in California as well.
This year the company where I am working at, filed for what in the U.S. is known as: chapter 11.
I am not sure about that Lucy, but I have read somewhere that this tool has been introduced recently here in Italy.
That for helping companies having difficulties. I do not know whether that is helping or not.
I am not aware of towns over here going through what the city of Gary is experiencing, I mean that is something extreme.
That is probably more likely to happen over there, where the territory is so vast and people move over the country more easily than, say Europe.
I have also heard that other towns are getting more people/workers with the controversial practice of Fracking.
That system of getting gas and oil pumping in the ground water and chemicals.
I would not want to have that in my backyard.
Thank you Lucy, I ‘ll think more about this topic and see if I have something else to write.
I am working the night shift, so I will think about it tonight.
Bye bye.
SOME IS BETTER THAN NOTHING, NO DOUBT.- GARY’S MAYOR, SEEMS TO POSSES A PRETTY GOOD SENSE, BUT THAT IS NOT SO COMMON, I MEAN HAVING COMMON SENSE. THE NEXT STEP COULD BE SELLING ABANDONED FACTORIES, UNDER SIMILAR, AND EQUIVALENT SELLING PATTERNS. A SINGLE ONLY ONE CITIZEN NOT HAVING BASIC HOME AND REGULAR SALARY TO KEEP DIGNITY STANDARD ALIVE, IS A REAL SOCIAL DRAMA. THE HUMAN CAPITAL IN ITSELF, IT’S WORTH MUCH MORE THAN THE CAPITAL ASSETS, AND SHOULDN’T BE LEFT TO DEPRECIATION AND OBSOLESCENCE. THE RECIPE IS PEOPLE LABORING IN COOPERATIVE AND GOVERNMENTS FUNDING OUT TRAINING WITH TECNOLOGY APPS. THAT FOR SURE BRINGS BACK REAL LIFE´S CONDITIONS AND MAKE REVENUE-GENERATING PEOPLE.
Hi all!
I’d say that because my country is a developing country, which is as Lucy mentioned above somehow taking over jobs of Americans, so our government probably don’t be hung up on the problems of the off-shoring.
But of course, we do suffer the global economic downturn too, I should say. Some parts of my city, I notice there are buildings which are unfinished, unoccupied keeping popping up recently. On other parts, there are
also buildings with floors which are stacked one on the top of another day by day and mostly would be sold out soon. My point is that a lot of investments in real estate are not well prepared…there were times when
the joint-stock market was losing its throne in my country, a bunch of investors turned their back, jumped into the real-estate field and gained lots of benefits by increasing the price, I would say, every single minute.
And with short-sighted strategies, now, most of ordinary people who are really in need of a home-ownership can’t meet their needs meanwhile a small amount of high-class people are owning more than their needs.
My government had to launch a stimulus package in a striving of melting the iceberg of estate. Lower-income people would be loaned at low interest rates to buy house but 4 months since it has launched, with strict
requirements for approaching the package, those are lent the money can be merely counted on my hands. So I think my government should take another drastic measures for his own sake. Houses with price at only
1$ sounds like a superior action…but everything has 2 sides of the coin, so let’s see what will happen 😀
Best regard!
Wang
Hi every Body,
I know I have been gone for a while, but I still have the best interest of every one of this blog to my heart.
I am sad about this tragic event that people would have to give up their home for the reason of having not enough money to live on, really am.
back then it happened to people having to leave their city, yes their city, because of sand storms.
Here were we live the economy has always been bad, worse than every where else. But I know no one who has abandoned the city.
sometimes there might be some immigration, but there are always some one to fill in the empty house.
I hope that the mayor’s plan will work out. at least for the sake of bringing safety to the city.
thank you,
Parviz
hi,
of course not. because here when there is not any job in a city people won’t go there. they try to find ways to earn money not to spend money, even if they can own a house with $1.
i think it is like planting a tree in dry land (infertile).
thank you Lucy, your texts are always interesting.
sincerely,
Ziba
Hi Parviz,
It is nice reading from you again.
Thank you.
Hey,
I do not know, it is hard finding solutions once you are in that situation.
I would not certainly be in the place of Gary’s mayor. I wish him and the rest of Gary’s population the best.
My sympathy goes also with the people who left the town. Good luck guys.
At the end that is part of the game, something goes down and something else goes up. That is how things work.
I would like to remember them the words of this 64 years old swimmer that the other day swam 177km. between Avana and Florida
“We should never, ever give up”
Thank you guys
Dear Lucy, I have read about this what you sad, what is happening in Michigan and its big cities like Detroit.
Eve at the Spanish TV., was a program about that, so pity, so sad, to see a City like Detroit so bad, such a lot
of buidings empty.
Yes, all this could be very sad for us, but it is quite worst to the people who have lived that.
Being Young, Emiliano could remember General Motors as one of the first, or the first, companies in the World.
Now what is it?
I don´t know really what to say, and this is very difficult emiliano´s mouth closed, just incredible ja, ja,
but it is true.
Very very sad and not knowng what to say.
Is it good or bad to buy a house for one dollar?. Why for if there is not any future over there.
Not people, not workd, a industry going to dissapear, so future it is really dark.
How about your holidays dear Lucy?
Did you enjoy them?
Well, I know you are going to tell us nothing, it is really a pity because you know?
We really like to know something more about our dear mysterious teacher Dra. Lucy Tse.
Thanks a lot dear Lucy.
emiliano
Hey, have anybody heard from Peter so far (Esl ruler, I saw him used this pen-name once)?
I haven’t seen his words for long time…I miss the way he joked around people
Hope that everything is going on well with him
Hi Dan
Thank you for your nice welcome. I missed your reading your post.
Sometimes I think of you as my older brother. He used to check me, where to go and not to go.
________________________________________________
AND a big, FAT hello to Mr. emiliano.
How are you? are you doing well as always? how is the unseen blogger? you know who I mean? GATUFO?
emiliano, It seems to me that something has happened to your lengthy posts, right?
it is strange of you to wright such small post.
PS. You are getting a little bit sentimental.
___________________________________________
You didn’t think I abandoned my city, did you?
I would never do that. Refereeing to Ziba’s post, people here wouldn’t go any where.
because in either way we have to live on less than one dollar.
I mean, the situation is somehow similar.
Of course there are some affluent cities around, but it takes a young, poor boy like me to venture for them.
I am happy here. I can live on a diet of water and bread. 😀
Thank you
Parviz
Hi Everyone,
Very interesting topic ! I remember when the international economic fell in 2007, because of subprimes crisis.
To see people who have to sell their house in several auctions because they can’t no longer assume the credits of their house. It’s not beautiful to see that.
There in Detroy, the problem is a little bit different. A lot of People have leave this town, because of dismissals, when the automobile industry economy has downturn.
I think this idea which consists to make that people come back to settle at Detroy is a very good idea. To make that people can be owner again of a home whether if they pay only $1 it’s great. they have to give a guaranty (they must have a minimum income) which proves that they can assume costs needed to repair or rebuilt houses.
The Idea of Mayor of Gary is good I think, to collect taxes of people who have buy a empty house will allow to make relive this town, by implement new equipements, building and so forth.
But I think officials have to be careful with the level of taxes, if it’s too high, people will not come back. Those who settled leave the town.
Here in France we have not this kind of situation. Even at the time of economic crisis, there are not had this kind of case. I think it’s because our system to get credit is very different of the U.S. system.
We have a lot of problem about offshore sales and employment, since maybe seven years. But in France if you have need a credit for a project like buy a house or car, the maximum of credit must to be lower than 33% of your income. This system protect people of the bankrupt, not 100% but reduces the risk of bankrupt.
See you soon.
Lassana
I have heard this sort of news like spending only 1 $ owning a home about two or three months ago.
And honestly it totally freaked me out when I heard the news at the first time.
You know,this actually happened in America,which is the most wealthy country in this world.
And it seems to me that it cannot possibly take place in my country.Although it is still a developing country,not every family be able to afford a car,
people normally are more willing to invest in real-estate who even cannot buy 1 square metre with their one-month salary.
And they beleive someday they would benefit more from this.The truth now has conformed their thoughts that the price is still shooting up,I guess.
My government is taking measures to fix these sort of things and I hope the measures can really work out as Wang above refered to.
Hi Parviz,
I have thought is you and in your country frequently, also about the elections that took place son after today and the
results of them.
Meant they something good for you or your friends?
I hope that yes, they meant something right.
Frequently I have thought in the old Persia and how beautiful have to be you country. Also the people I have met
years before were absolutely nice and correct.
They enjoyed Spain such a lot because here ther is something like brotherhood between the two countries.
You are really nice Parviz, but ask Dan for my long long writing.
As long as he said me something last week and I sent him………..(forbidden), yes it was retired looking for the
peace of this incredible friendly blog.
I have to tell him by private mail, Dan had mine and I have his mail too.
That´s very good because we are in touch sometimes out here, and I could see their cats, and he my Gatufo.
I call Gatufo my son. Sometimes I said to the cat……come with dady, come with dady, and the cat came
very fast.
It was really funny dear Parviz, after seven years writing here it was the first time I said something not very
appropiate to Dan…..and my two messages were censured by the bad (but joking) phrase. It was like incredible
to me after so long time writing nearly every day.
Of course, no body knows if I was kidding or not, it sounds hard, so my two messages were deleted.
May you imagine that, Parviz?. The senior writter of the ESL blog being censured? There is not any privilige
for anyone, even for Emiliano, if he use not a right expression.
Good, bravo, that´s right, every one the same.
So I have to mail Dan and said it to him directly.
He was laughfing such a long while and told me don´t be angry, (I wasn´t) becaus it happened to him
some times he said something not correct.
So now I have to be careful writing too long because Dan said to me not to tired everbody with my long
long speech, either too frequently, as to bore the pesong who is after ESL watching all the writings.
That´s the reason my dear Parviz.
I don´t want to bore Dan or other.
Welcome my dear friend, I am very pleased to see you here.
emiliano