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Learning from Detroitís Mistakes
Heritage Foundation ^ | 8/5/2013 | Rachel Greszler and Alison Acosta Fraser

Posted on 08/05/2013 5:36:13 AM PDT by IbJensen

Detroit is the poster child for economic decline. The city’s policies and politics over the past half-century should serve as a “do not” guide for policymakers across the country.

There’s a great deal lawmakers in Washington can learn. The first is understanding that Detroit’s demise was the result of big-government, liberal policies promoted by self-interested politicians and coercive public employee unions.

In the wake of America’s manufacturing decline, Detroit enacted policies that drove out businesses and residents. Rather than reduce the size of government as its population shrank, the city instead sought higher levels of government spending. City leaders acquiesced to unions by increasing employee benefits and ceding control and flexibility over employees.

To pay for it, Detroit continually increased taxes and engaged in prolific borrowing when the tax increases did not close the gap. And yet, despite the growth in government taxes and debt, Detroit’s citizens experienced ever-declining city services, the most troublesome result of which has arguably been the steep rise in crime.

A federal bailout of Detroit is not the answer.

If Congress were to step in to protect any of Detroit’s creditors—be they pensioners or bondholders—it would create an untenable moral hazard. Believing that the federal government would step in to help them, troubled state and local governments across the nation would have no incentive to enact reforms, and unions and workers would have no incentive to accept them.

Moreover, a federal bailout of Detroit or any state or local government would impose the costs of one city’s fiscal recklessness on the taxpayers of other, more responsible states and localities.

Perhaps most important, though, the federal government is in no fiscal position to be providing bailouts.

As significant as Detroit’s debt is, the federal government is in far worse shape. In fact, as the chart above shows, the federal government’s debt and unfunded obligations are more than eight times that of bankrupt Detroit.

Detroit’s spiraling decline is a tragedy. Lawmakers in Washington should learn from Detroit’s mistakes and rein in big government now before it’s too late.


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Government
KEYWORDS: detroit; detroitisliberalism; progressiveshowcase; racepimps
Detroit is the most race-conscious city in America where negroes have been told for years that white men are the reason for their economic plight, therefore they blame white people for their problems. The culture of drug dealing and use and prostitution and the inherent crime dominate the inner-city. Single parent households have replaced fathers with the nanny state. Government welfare enabled women to procreate and survive while making fathers obsolete. In short, Detroit has become a progressive's mecca. This is what their imbecilic policies have wrought. This is Lyndon Bird Johnson's Great Society! This is their proof that our strength is in our diversity!
1 posted on 08/05/2013 5:36:13 AM PDT by IbJensen
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To: IbJensen

Public sector unions need to be outlawed!


2 posted on 08/05/2013 5:43:50 AM PDT by Beagle8U (Free Republic -- One stop shopping ....... It's the Conservative Super WalMart for news .)
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To: IbJensen
Detroit is the poster child for economic decline the consequences of liberalism.

Fixed.

3 posted on 08/05/2013 5:46:20 AM PDT by Sicon ("All animals are equal, but some animals are more equal than others." - G. Orwell)
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To: IbJensen

Detroit will gain much needed relief (and pain) thru bankruptcy, but it won’t be able to successfully rebuild because it will start over with all the same characters in place.

Detroit has too few public sector taxpayers and while bankruptcy will shed debt and cut spending, it won’t produce any new taxpayers.

And, because of Detroit’s social issues, crime, high taxes, blight, poor education, no new taxpayer will fill the gap.


4 posted on 08/05/2013 5:48:29 AM PDT by umgud (2A can't survive dem majorities)
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To: umgud

oooops, I meant private sector taxpayers.


5 posted on 08/05/2013 5:49:20 AM PDT by umgud (2A can't survive dem majorities)
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To: IbJensen

Public unions + free sh*t army + long term democrat rule = bankruptcy and ruin for any city


6 posted on 08/05/2013 5:49:36 AM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: IbJensen
There’s a great deal lawmakers in Washington can learn

Actually not. You can only learn if you don't already know everything, and obviously 0 and his accomplices already know everything. Every time his policies make things wors he doubles down with our money. Green Jobs? Just because there aren't any doesn't stop him from squandering hundreds of millions on training for them. Solar energy? Can anyone spell Soylndra? Half a billion there to pay off campaign contributors.

Politicians and bureaucrats NEVER learn anything good from the past. The two best things about government work

  1. You get to spend the hard earned money that OTHER PEOPLE worked for and
  2. You never have to admit that you made a mistake

7 posted on 08/05/2013 5:53:24 AM PDT by from occupied ga (Your government is your most dangerous enemy)
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To: IbJensen

No matter what happens, it will be more income redistribution from the productive members of society to the slackers.


8 posted on 08/05/2013 6:04:29 AM PDT by I want the USA back (There's no autocorrect for stupidity.)
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To: IbJensen

Can Barry see Detroit form his window?


9 posted on 08/05/2013 6:17:17 AM PDT by mountainlion (Live well for those that did not make it back.)
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To: umgud

I believe I stated this several times on other threads or postings, but Detroit is effectively dead. Perhaps the Chinese will buy it and turn it into a gigantic restaurant, but the boat to Boblo will never sail again. It does stand a chance to be rechristened the Mecca of America.

Goodbye Carl’s Chop House, goodbye Little Harry’s, Goodbye J. L. Hudson, Goodbye old Tiger Stadium and so many others.


10 posted on 08/05/2013 6:27:20 AM PDT by IbJensen (Liberals are like Slinkies, good for nothing, but you smile as you push them down the stairs.)
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To: IbJensen
Perhaps the Chinese will buy it and turn it into a gigantic restaurant,

Had this argument this weekend. Will never happen unless the Chinese Army airdrops a couple of batallions into Detroit with tanks, etc. Face it, the only reason why the "emergency manager" hasn't be deposed is because he is black. If he was Chinese, he would be heading for the hills. The people who ran Detroit into the ground will NEVER give up power without violent force. They are the 3rd world dictators like Noriega we have dealt with in the past. ZERO difference.(pun intended)

11 posted on 08/05/2013 7:36:05 AM PDT by gr8eman (Ron Swanson for President!)
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To: Sicon
The 800 pound gorilla that no expert ever mention is that forced busing played a large part in both middle class blacks and whites moving to avoid putting their first grade and up children on a bus and bus them for an hour across town for that the schools were “integrated”. One black member of the school board (or council) I don't remember which was interviewed and was royally P Oed. He said it was an insult to him to tell him his child couldn't learn unless they sat next to a white child....bye bye middle class as soon as they could move out.

Black and white flight.....Its not PC to bring up the truth. I was born and raised in Detroit until I married in 1957. At that time we couldn't afford a home in Detroit and moved into a new sub and ours house cost 13,900. No home in Detroit could be bought for that low cost.

12 posted on 08/05/2013 11:27:09 AM PDT by goat granny
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