Detroit bankruptcy? Why? What led Detroit to accumulate $20 billion in debt and billions more in unfunded liability in pensions and health care? The answer may be “liberalism in motion.”
1957 was the last year a conservative mayor was elected in Detroit; all liberal Democrats since. Detroit is famous for being a one-party town where true liberal policies can run amuck, unfettered and unchecked. Detroit is a perfect model to demonstrate natural consequences of liberal dominance. All the policies, regulations and economic decisions were controlled by liberals and their way of doing business.
City leaders often tried to reverse diminishing revenue through new taxes — a new income tax in 1962, a new utility tax in 1971 and a new casino tax in 1999 — just a few among many new taxes throughout the years. Revenue in today’s dollars fell nearly 50 percent from the early ‘60s to 2012. Massive taxes, unions and other liberal policies drove away business, jobs and tax revenue they so desperately needed.
Detroit retiree pensions and health care went out of control even as the state of Michigan and the private sector were reducing costs which resulted in major stress to an already damaged economy.
Yes, unfortunately the middle class is shrinking. The pendulum has swung so far left that Detroit’s plight and other cities like it are not a surprise to any objective thinking person who comprehends basis economic principles. One can only imagine how misguided one would have to be to conclude conservative policies resulted in Detroit’s demise.
I hope liberals retain control of the White House and Senate in 2016 and gain control of the House of Representatives as well. With Obama “not” care adding extreme stress to our economy and federally and liberalism in firm control, there should be no doubt then just who and what is to blame as more and more cities file bankruptcy during the next decade. It is not if it happens, but when.
This is good news! The sooner the inevitable happens, the sooner we can move forward with sound constructive compassionate economic principles to help the middle class and poor. Good days will come.