Why First World Countries Have Third World Cities

[Chris]

Why First World Countries Have Third World Cities

...Throughout the United States, I frequently come across what I call "third world cities in first world countries" - whether it is Detroit, Baltimore, or even my beloved New Orleans. These third world cities all have one thing in common: an absence of free and open markets.

There is a wide consensus amongst economists that economic freedom largely determines the wealth of nations and metropolitan areas are no exception to this rule. As Economist Dean Stansel, in his paper, "An Economic Freedom Index for U.S. Metropolitan Areas," states, “higher levels of local economic freedom are found to be correlated with positive economic outcomes.”

One of the most profound insights from Stansel’s paper is that moving from the 5th (least free) to the 4th quintile causes a drop in unemployment by 0.9%. Stansel’s index ranks Detroit number 345, Baltimore number 102, and New Orleans number 262 out of the 384 metropolitan areas examined.

Both Baltimore and Detroit make it into the top 5 cities with the highest tax burdens, according to the Office of Revenue Analysis. As for New Orleans, Louisianans face the third highest combined state and local sales taxes, as well as excessive levels of deficit spending. These three cities are also plagued by excessive and even bizarre occupational licensing laws. Louisiana licenses florists, Detroit licenses hair-braiders, and Maryland counties license fortune tellers. If only Maryland’s licensed fortune tellers could have predicted that big government would cause businesses to flee these cities.

As if these regulations and taxes weren’t enough, labor market restrictions have left job-seekers in Detroit and Maryland crippled....

[Standing Wolf]

State and local governments taxing businesses is only part of the problem. Residents of those cities burning down or robbing blind the businesses, while robbing and murdering their employees, is another part. Add to that the excessive costs of policing and social services that necessitates higher business taxes.

[RMNIXON]

Lets add London and other Europeon Cities to the list...............

[Mister D]

Social engineering played a role in the demise of cities like Baltimore and Detroit.

[Chris]

Social engineering, in my mind, equates to regulation. Too much is not good for the community. Too little too. Like Goldilocks.

[Mister D]

Social engineering, in my mind, equates to regulation. Too much is not good for the community. Too little too. Like Goldilocks.

I was thinking of integration and White Flight.

[Chris]

I was thinking of integration and White Flight.

Both reactions to regulations.

[Mister D]

Both reactions to regulations.

True

[Ethereal]

It's just a coincidence that the shittiest places in America are under total Democrat party control.

[Chris]

It's just a coincidence that the shittiest places in America are under total Democrat party control.

Democrats favor (forced) integration. A result of that if white flight (even the Obamas engaged in it).