“Detroit’s sixty year decline, culminating in its recent bankruptcy, has many causes. But one that should not be ignored is the city’s extensive use of eminent domain to transfer property to politically influential private interests. For many years, Detroit aggressively used eminent domain to promote ‘economic development’ and ‘urban renewal.’ The most notorious example was the 1981 Poletown case, in which some 4000 people lost their homes, and numerous businesses were forced to move in order to make way for a General Motors factory. The Poletown takings ended up destroying far more development than they ever created.”
http://www.volokh.com/2013/07/22/eminent-domain-and-the-decline-of-detroit/
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