Anyone who’s been to Detroit in recent years knows it’s a mess. Acres and acres of abandoned houses, a population decline of 25% in the past 10 years, an astronomical crime rate, and the city is literally leaking money to the tune of some $200 million in two months. Back in March, Gov. Rick Snyder appointed bankruptcy attorney Kevyn Orr as the city’s emergency financial manager, and Orr has just released his report on the city’s financial state.

Before we begin weeping about the death of the Motor City, there are bright spots. Fast Company did a piece in April highlighting entrepreneurs who are taking advantage of low-rent and housing prices and the need for creative work to boost Detroit’s economy. Dan Gilbert is a real estate broker working on filling office space downtown. Andy Didorosi has created a bus service that takes patrons from night-spot to night-spot in safe, fun fortable buses. Alicia George has opened a coffee house, and is optimistic that several new businesses have opened near-by.

Now for the bad news. The city of Detroit is paying a farrier (that’s a person who shoes horses) $56,000 in pay and benefits. Right now, in 2013. Let’s just say that he’s not really earning his pay in today’s downtown Detroit. The Detroit Water & Sewer Department is telling the cash-strapped city they need more employees – union employees. And the city’s unionized teachers? They want to cash in unused sick days for over $14 million.

An independent report said four out of five employees in the bloated department were redundant and discovered a thicket of union regulations driving up costs. plainedthat, due to union work rules, they had to wait to fix pipes until duly authorized “operators” came along first to shut them off.

The Detroit Federation of Teachers, which enjoys rich pay packages (corrected for purchasing power, Michigan teachers are the best paid in the nation, reported the Mackinac Center for Policy Policy), would do the UAW proud. Its employees pay only ten percent of the cost of their insurance premiums. While they take extravagant numbers of sick days or personal days — 8 per teacher — they also cash in on “unused sick days” to the tune of $14.5 million a year….

From 2008 to 2011, health insurance costs for Detroit employees and retirees have jumped 62% to $186 million a year, the Detroit Free Press reported. Pension contributions in that period jumped 140 percent, from $50 million to $120 million.

To fight for their pensation, unions have proven prepared to fight back with any weapon at hand. Appointing emergency financial managers is “just like being in the slave plained Iris Salters, the president of the Michigan Education Association.

Fast food workers are on strike as well, many demanding via a wildcat strike a pay raise to $15 per hour and union representation.

There are a number of things going on here. First, Detroit’s political culture of backroom deals, corruption and crime has to stop. If the city is going to survive, those who serve in leadership positions must be above board regarding everything they do.

Second, the Motor City has to realize it isn’t the Motor City anymore. The auto industry is diversified and no longer localized in Detroit and its suburbs. No one is getting a job out of high school to work “on the line”, figuring they’ll make a healthy living and raise a family on that salary anymore.

Third, the unions have to give in. There isn’t any more money for their demands. Yes, joining a union should be a person’s choice. Yes, unions have a history of protecting workers’ rights. Yes, unions have been a big part of Detroit’s success in the past. Now, they are a stumbling block and they are costing the city too much for too little.

Finally, Detroit needs to see itself as an entrepreneurial playground. There is always opportunity for human creativity and flourishing. Detroit is not a loss. In fact, it can be a shining example of how a city e back after financial catastrophe, if people are allowed the freedom to create businesses, assured that their city will protect their property and that customers will feel safe when patronizing them.

Detroit needs start looking to the free market model of rule of law, opportunity, creativity and sensible planning. Detroit needs to stop shoeing horses.