Can Detroit Be Saved?

Dave Bing has just signed on to four years of maybe the most futile and thankless job in America: mayor of Detroit. What in the world was he thinking?

“I wouldn’t have taken this job if this wasn’t doable,” he says. “I finished basketball in 1978, then went into my own business in 1980 and did it for 29 years. . . . Now I get to the end of that career and probably should have retired. But there was a calling greater than anything that I ever envisioned, and that was to help bring this city back.”

In November, 57% of the Detroit voters bought into his tough-love reform agenda. Mr. Bing replaced the disgraced Kwame Kilpatrick, who went to jail earlier this year for spending city funds on his girlfriends—just the publicity boost the city already flat on its back didn’t need.

Dave Bing is no Milton Friedman when it comes to economic solutions. He’s praying for lots of federal aid to help the city pull out of its ditch, he wants to borrow against future tax revenues, and he hasn’t ruled out tax increases “if they have a sunset” to pay the city’s bills. He believes it’s a core responsibility of government to help people.

Yet Mr. Bing is a realist, something Detroit hasn’t had at the helm for a long time. “We’ve been paralyzed by a culture in the city of Detroit, and maybe the state of Michigan, of entitlement,” by which he means ever-rising union wages. “Our people, I don’t believe, truly understand how dire the situation is. There are ugly decisions that need to be made and I’m surely not going to be popular for making them. But I didn’t take this job based on popularity.”

One group that surely isn’t a fan is the public employee unions. He grumbles that there are 17 unions with over 50 separate bargaining units. “I can give you a data sheet that will show you we’ve got several of those bargaining units with less than 100 people, and each one of them has a president that’s paid by the city to negotiate against the city,” he says. “Coming from the private sector, I find that insane.”

The mayor is quick to remind me that he is not antiunion. He joined the NBA players association in the late 1960s and hired a mostly unionized workforce at his firm, Bing Steel. But for months he has been locked in tedious negotiations and the aggravation is starting to show.

“The problem for the most part,” he argues, “is poor union leadership. I think the rank-and-file aren’t being told the truth. And I’m not going to B.S. anybody. I’m going to tell them the truth. They can’t continue to ride this gravy train forever.”

He poses this question to the city workforce: “Are you better off having a job and making 90% of what you’re at today or having no job at all? To me, you don’t have to be a brain surgeon to say I’ll take that 90%.”

Could Detroit be the first major city in America to actually declare bankruptcy, I ask hesitantly. His honesty surprises me: “I hope not, but I wouldn’t rule it out if we don’t get concessions from the unions.” He may be using the threat of bankruptcy, which is a poison pill for unions, as a bargaining chip. “This would void all the city contracts,” he insists. “That means workers have to make a decision: Do you want to start with zero, or do you want to start from where you are and give up just a little bit? Under bankruptcy you start with zero.” Mr. Bing is a hardliner.

“We have to be honest with ourselves and say we’re no longer going to be the motor capital or the manufacturing capital of the world,” Mr. Bing says. “But I think we can be the entertainment capital of the Midwest. We have casinos, great hotel accommodations, great restaurants, we’re one of the few cities that has every professional sports team.