Question

Poletown Neighborhood Council v. Detroit.

Case desciption: Detroit condemned the land of Poletown in order to give it to a corporation which help to create huge employment opportunity.

Please use some economic models to argue for and against the condemnation.

Answer 1

Ans.) This is an example of welfare economics which aims at focussing economic activities for the welfare of the society. The land to the neighborhood Poletown was given to a corporation for which Detroit condemmed.We have to undestand the case fully which is as follows:The city of Detroit was loosing jobs and General motors was planning to shut down its operations which could lead to a further rise in unemployment hence an offer is made from the General motors side for a site near the neighborhood of Poletown which was privately owned by the residents and Power of eminent domain was used here to ensure the public benefit as in case concerned with more employment to the people.The arguement against condemnations are since the site is ia use for public benefit as it will provide the employment to the people and aims at revitaliasing the economy of the region.Hence that better economic conditions will benefit the locals to the taking away of the personal property by the state authority is justified here.

The arguments in favour of condemnation is since the right to private property must not be subordinated to private corporate interest unless the government fully ensured that it will greatly benifits sufficiently for the public good or it can be a case of subordination of constitutional righr to private property to corporate interest.