Tuesday, October 25, 2011

Hansen Clarke’s idea to save Detroit could be crazy enough to work


U.S. Rep. Hansen Clarke has a crazy plan to save Michigan’s largest city. Or, I should say, he has a plan that seems that way until one realizes every non-crazy idea for saving Detroit has been either tried already, or dismissed as politically impossible.
To some people, Clarke’s plan still might seem to be a little bit “out there,” even considering all that. But, crazy or not, Clarke’s bold proposal is getting some serious traction and picking up support from both sides of the aisle.
The centerpiece of Clarke’s proposal is something he calls a Detroit Jobs Trust Fund. Before you start thinking “federal bailout,” or “massive hand-out,” you should know that, while the fund would consist of real money, none of it would be yours – that is unless you live or operate a business in Detroit. And even if you do, it would not raise your taxes one penny.
Clarke’s bill would “capture the federal tax revenues collected from persons and entities in the City of Detroit to be invested in local redevelopment efforts for a period of five years.” In other words, it would use Detroit’s own money to fix the city by (and this should be music to the ears of liberals and Tea Party patriots alike) denying about $2 billion per year to the U.S. Treasury.
The largesse would not come without strings. The trust fund would be used only to pay down the debts of the city and the Detroit Public Schools, and for things like public safety, education, needed infrastructure projects and “job development initiatives.”
Clarke’s trust fund bill is part of a broader plan (summarized here) that, among other things, would temporarily eliminate capital gains taxes for investments made in the city and modify visa requirements to encourage immigrants to create jobs in distressed areas like Detroit. Clarke also makes a lot of suggestions intended to help the national economy, such as providing cash assistance to encourage hiring, tax incentives for companies that retrofit buildings with “green” technology, reducing the cost of education and slowing the rate of foreclosures.
It is, however, the Detroit Jobs Trust Fund bill that has attracted the most attention – in part because it is a simple, audacious idea that potentially could be replicated nationwide. Rep. Candice Miller, R-Harrison Township, whose district does not include any of Detroit, is among the 31 co-sponsors of the bill.
In an interview with Detroit Free Press columnist Rochelle Riley, Miller said Clarke’s plan “could be an inexpensive way for the federal government to have some real meaningful urban agenda” and help Detroit, in particular, “get the debt paid and get ahead on crime and do something about the infrastructure.”
I completely agree. So far, fixing America’s urban centers has been like trying to install a sprinkler system in a building that’s already ablaze. Sure, the sprinklers would be a good, long-term solution to the fire problem. But, putting out the flames on the scene will always be more urgent than installing new pipes to fight future conflagrations. Likewise, never-ending revenue shortfalls make it hard for city leaders to even think about making investments that could pay off in the future.
The trust fund could give Detroit a second chance while helping to accelerate and expand a palpable resurgence already taking place in some parts of the city. And it would do it by simply giving Detroiters the chance to help themselves – with their own money.
Does Clarke’s plan have a chance? In this Congress, it’s impossible to overestimate the challenges facing any bill, from any Democrat – especially one that would address the needs of primarily Democratic voters. But, then again, it’s also hard to count Hansen out.
I had a tiny part in helping Clarke get elected – a little entry-level volunteer work that consisted of making some phone calls, canvassing door-to-door and marching with him in a parade. From that vantage point, I had a good chance to observe him and take his measure.
Clarke, like a lot of politicians, is fond of saying things like “the people have all the power.” The difference is that Clarke, who grew up on the mean streets of Detroit’s east side where faking it can be fatal, actually means it. When he says it, he isn’t spouting trite rhetoric or merely trying to rev up a crowd. He is issuing a warning. Clarke wants those in Washington and elsewhere to know that “people power” is real and that he considers himself to be an instrument of the people.
It’s a simple and powerful message. And Clarke’s proposal backs it up by asking Washington for little more than the chance to exercise that power locally, directly and with money already in the community.
If sincerity and tenacity still count for anything in the hyper-partisan atmosphere of today’s Washington, Clarke’s crazy idea could well end up being the law of the land.