After decades of mismanagement, Detroit is a basket case and always will be, right? Not so fast, say Jamie Dimon, CEO of JPMorgan Chase, and Detroit Mayor Mike Duggan.
"The encouraging news from Detroit is that the city is turning the corner," they write in USA Today
. "And its journey is worth examining because it points the way for other cities as they seek to build the foundation for economic growth and expanded opportunity."
So what's Detroit doing that other cities should match? The duo list several accomplishments.
- Focusing on job creation that requires advanced skills. "Detroit is working together to identify the most in-demand skills for area employers and then scaling up programs that equip residents to fill those jobs," Dimon and Duggan say.
- Fostering of entrepreneurship.
- Bucking up neighborhoods.
- Attracting domestic and foreign investment.
- Partnering with the private sector.
"Detroit's experience isn't a road map. But it does suggest a way forward," Dimon and Morgan state.
"We must invest in our cities because they are the keys to our economic future. This is happening in Detroit. Hopefully, it will happen in more cities, too."
Meanwhile, Nobel laureate economist Joseph Stiglitz of Columbia University offers several solutions to growing income inequality in his new book, "The Great Divide: Unequal Societies and What We Can Do About Them," which was excerpted on Yahoo Finance
- Tax Reform. The idea should be for "those at the top pay at least the same share" of their income as everyone else does, Stiglitz says. Tax provisions that weaken the economy and create more inequality should be eliminated.
- Structural economic reform. It is "the way our economy works that creates this inequality," Stiglitz says, citing "ineffective and ineffectively enforced" antitrust and corporate governance laws that favor the wealthy. That leaves "less for investment, less for wages," Stiglitz writes.
- Equal access to education. "We spend more even in the public school on the children of the rich than we do the poor," he says. "We are transmitting advantages and disadvantages across generations, and that is the most important factor in creating this inequality of opportunity."
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