This week, Senator Rand Paul, who is likely running for president, suggested that Congress act to pass legislation which would declare Detroit an economic “freedom zone.” That is to lower taxes in Detroit to near 0% levels, spurring business activity and development.
Few cities have been as ravaged by inept governing and crony capitalism as Detroit has. Because of decades of mismanagement and neglect, what was once one of the great cities of the world is now a rusting heap. But it need not remain so.
Detroiters are now presented with an incredible opportunity in the proposed Freedom Zone. In the face of despair and economic ruin, they can show that the city which spawned Joe Lewis can become a contender on the world stage – again.
Seems a bit optimistic given where Detroit is now to imagine the city solvent, never mind thriving. But if the power of the market were unleashed in the city, if Detroiters and entrepreneurs from across the country and around the world could realize the simple benefit of keeping almost all of the fruits of their labor in the city, Detroit would roar back to life.
Michigan would see massive wealth inflows. The young and ambitious would come from the coasts instead of the other way around. People would actually WANT to buy homes in the city. If Detroit truly became a nearly tax fee zone, with services engineered through the market, the ambitious and smart, not to mention moneyed, of the world will come.