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Stalled Motor City
Townhall.com ^ | July 24, 2013 | John Stossel

Posted on 07/24/2013 4:11:01 AM PDT by Kaslin

MSNBC host Melissa Harris-Perry -- the same TV commentator who said Americans need to stop raising kids as if they belong to individual families -- had an extraordinary explanation for why the city of Detroit sought to declare bankruptcy last week: not enough government.

"This is what it looks like when government is small enough to drown in your bathtub, and it is not a pretty picture." She says budget-cutting Republicans threaten to transform all of the U.S. into Detroit.

What? Detroit has been a "model city" for big-government! All Detroit's mayors since 1962 were Democrats who were eager to micromanage. And spend. Detroit has the only utility tax in Michigan, and its income tax is the third-highest of any big city in America (only Philadelphia and Louisville take more, and they aren't doing great, either).

Detroit's automakers got billions in federal bailouts.

The Detroit News revealed that in 2011, the city had around twice as many municipal employees per capita as cities with comparable populations. Detroit's water and sewer department employed a "horseshoer" even though it keeps no horses.

This is "small enough government"? Harris-Perry must have one heck of a bathtub.

Politicians think they know best, but they can't alter the laws of economics. They can't make mismanaged industries, constant government meddling, welfare and bureaucratic labor union rules (Detroit has 47 unions) into a formula for success.

County Judge Rosemarie Aquilina wants to stop the bankruptcy process on the grounds that state law forbids Detroit to cut government services. But how will Detroit pay for the services? Unsustainable public-sector pensions, a bloated workforce -- it's all supposed to continue somehow.

Politicians on Detroit's city council aren't even willing to sell off vacant lots that the city owns, or even a portion of the billions of dollars in art in its government-subsidized museum (including the original "Howdy Doody" puppet).

On my TV show, I confronted the council's second in command about his refusal to let Detroit sell land. He says he voted against it "because the developer wants to grow trees. We don't need any more new trees in our city." The politicians micromanaged themselves into bankruptcy, and they want to keep digging.

A member of the British Parliament writes that Detroit is like the fictional city of Starnesville in Ayn Rand's 1957 novel "Atlas Shrugged" -- a car-manufacturing city that became a ghost town after experimenting with socialism. In the novel, Starnesville's demise is the first sign that the entire society is approaching collapse.

Detroit is already there. 911 calls sometimes go unanswered. Two-thirds of the population left town.

As usual, the politicians want to try more of the same. They constantly come up with plans, but the plans are always big, simple-minded ones that run roughshod over the thousands of little plans made by ordinary citizens. Politicians want new stadiums, new transportation schemes, housing projects.

Andrew Rodney, a documentary filmmaker from Detroit, says many bad, big-government ideas that have plagued the U.S. were tried out first in Detroit. "It's the first city to experience a lot of the planning that went into a lot of cities."

Home loan subsidies, public housing, stadium subsidies, a $350 million project called "Renaissance Center" (the city ended up selling it for just $50 million), an automated People Mover system that not many people feel moved to use (it moves people in only one direction), endless favors to unions -- if a government idea has failed anywhere in America, there's a good chance it failed in Detroit first.

And if you criticized them for it, politicians like former Mayor Coleman Young called you a racist. "To attack Detroit is to attack black," Young said. That tends to shut critics up.

But the laws of economics apply to us all.

Insulated from serious criticism, insulated from economic reality, Detroit thought somehow it'd muddle through -- until now. There is a big lesson, if people elsewhere are willing to learn before it's too late.


TOPICS: Culture/Society; Editorial; Government; US: Michigan
KEYWORDS: bankruptcy; biggovernment; detroit; pmsnbc

1 posted on 07/24/2013 4:11:01 AM PDT by Kaslin
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Comment #2 Removed by Moderator

To: Kaslin

Syphilis. Of the brain.


3 posted on 07/24/2013 4:19:01 AM PDT by Mr Ramsbotham (Laws against sodomy are honored in the breech.)
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To: F15Eagle
It doesn't appear that the republicans are doing much either at this point. Now there is news that the democrats are pushing a behind the scenes payoff for the unions.

If conservatives don't find a workable solution the democrats will "fix" it for us.

(PJ media Free Detroit City!) Their way failed now lets try conservatism

No one is going to get all of their money but I think real estate may help to pay some of it back. Owners tend to create value. If the creditors find themselves holding vacant properties I guarantee they'll find a way to make them profitable. There is oil and gas under Detroit so that's one possibility.
4 posted on 07/24/2013 4:29:09 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Kaslin

Other People’s Money... Once you run out of it... You might as well turn off the lights and turn off the city.

If you’re a politician you go to a different city and try it all over again, the theories are ‘obviously’ correct but ‘someone’ else messed it up and you just have to try it again to prove that you were right the first time.

And that’s what I see happening in Detroit, Cleveland, California, etc. It’s everywhere in this beautiful country of ours. It makes me wish for a “reset’ button because this game of ‘Sim-City’ is a bust.


5 posted on 07/24/2013 4:31:34 AM PDT by The Working Man
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To: Kaslin
This company received billions of yours and my money. This money was to stave off the collapse and ruin of this "to big to fail" company.
As the financial and commercial center of Detoilet and the shinning star of first term Obamanamics; why haven't the city "fathers" sought recompense from them?
6 posted on 07/24/2013 4:31:36 AM PDT by John 3_19-21 ("as for me and my house, we will serve the Lord.")
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To: Kaslin
MSNBC host Melissa Harris-Perry --the same TV commentator who said Americans need to stop raising kids as if they belong to individual families --had an extraordinary explanation for why the city of Detroit sought to declare bankruptcy last week: not enough government.

Stuck on stupid.

7 posted on 07/24/2013 4:37:44 AM PDT by Nita Nupress ( Use your mind, not your emotions. Refuse to be manipulated by Marxists!)
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To: Kaslin

Even most alcoholics admit they have a problem eventually. Willful denial of reality will never be a success in life. Have at it Lieberals.


8 posted on 07/24/2013 4:41:37 AM PDT by tflabo (Truth or Tyranny)
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To: The Working Man

We’ve got to pay down the debt but its even more important that we stop creating debt.

Meanwhile were talking about how Egypt needs $12 billion and lord knows how much more to dozens of other countries.


9 posted on 07/24/2013 4:41:46 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Kaslin

Stalled?


10 posted on 07/24/2013 5:27:57 AM PDT by farsny
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To: cripplecreek
Meanwhile were talking about how Egypt needs $12 billion and lord knows how much more to dozens of other countries.

It's a good thing our money is 98% imaginary, isn't it? If it were real money, the tax payers might get annoyed.

11 posted on 07/24/2013 5:41:24 AM PDT by Standing Wolf
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To: Mr Ramsbotham

Vastly confused.


12 posted on 07/24/2013 5:41:52 AM PDT by Eric in the Ozarks (NRA Life Member)
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To: Kaslin
MSNBC host Melissa Harris-Perry -- the same TV commentator who said Americans need to stop raising kids as if they belong to individual families ...

Also the one who wore tampon-earrings...


13 posted on 07/24/2013 5:41:54 AM PDT by Rummyfan (Iraq: it's not about Iraq anymore, it's about the USA!)
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To: Kaslin
Home loan subsidies, public housing, stadium subsidies, a $350 million project called "Renaissance Center" (the city ended up selling it for just $50 million), an automated People Mover system that not many people feel moved to use (it moves people in only one direction), endless favors to unions -- if a government idea has failed anywhere in America, there's a good chance it failed in Detroit first.

....

But the laws of economics apply to us all.

14 posted on 07/24/2013 5:45:12 AM PDT by Rummyfan (Iraq: it's not about Iraq anymore, it's about the USA!)
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To: Kaslin

So they are in this situation because they are afraid that developers will grow more trees?


15 posted on 07/24/2013 5:45:43 AM PDT by GeronL
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To: cripplecreek

All those union members need a pension cut and we can pay them back with a free house, perfect for “flipping” since they are all fixer uppers.


16 posted on 07/24/2013 5:46:57 AM PDT by GeronL
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To: GeronL
I don't know about fixer uppers but I suspect they would be more effective at extracting value from the properties than the city is. The pensioners would probably want to get together and do something jointly. I have no douvt that the creditors would find a way to extract some profit out of the industrial properties.

Despite all the government/union created problems of Detroit, there is life there. This bankruptcy could be the best thing to happen in 50 years.

Kahn firm excited to start Packard project

The little guys are the ones who can make Detroit live again but the extreme taxation and ridiculous mountain of regulations need to end. Glenn Beck laid out a pretty good history of the destructive democrat policies that were imposed in the early 60s onward. LBJs 9 square miles scam where business taxes pay for pretty much everything. This led to business fleeing which led to the city imposing even higher taxes and more regulations as well as hiring new regulators. Democrats saw their chance at a planned community and it naturally failed.
17 posted on 07/24/2013 6:16:27 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Kaslin
Detroit is like the fictional city of Starnesville in Ayn Rand's 1957 novel "Atlas Shrugged" -- a car-manufacturing city that became a ghost town after experimenting with socialism. In the novel, Starnesville's demise is the first sign that the entire society is approaching collapse. Detroit is already there. 911 calls sometimes go unanswered. Two-thirds of the population left town.

When the city's 'producers and builders' realized takers had control of government they packed up and left. Got the hell out of Dodge. Out of Detroit.

And all the lovely homes and neighborhoods the takers were so jealous of? They got ' those too... trashed the homes and stripped 'em bare. It's a Trayvon city...

18 posted on 07/24/2013 6:18:39 AM PDT by GOPJ (Department of Justice to Americans:'How many fingers am I holding up, Winston?')
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To: Kaslin

19 posted on 07/24/2013 6:34:25 AM PDT by rhema ("Break the conventions; keep the commandments." -- G. K. Chesterton)
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