Detroit bankruptcy caused by decades of liberal policies

Detroit is a showcase for the liberal agenda — and now it is bankrupt. More than 50 years of control by big-government liberals and union bosses have left a once-great American city crippled.


Democrats have dominated the city council, and there’s been a Democratic mayor since 1962. One-party government quickly became bad government, featuring liberal policies such as sweet benefits for government unions.

For decades, Detroit kept kicking the can down the road: unaffordable borrowing, state grant schemes, raising taxes to the maximum allowed by the state, and deferring public pension contributions rather than cutting spending – just like Chicago and the State of Illinois.

City Hall made promises to public employees they couldn’t keep, so pension obligations is half of its $18B – $20B debt because the city experts predicted higher market returns, downplaying the actual financial risk.

Forty percent of the street lights are broken, only a third of its ambulances are in service, and there are 78,000 abandoned buildings. Crime and high tax rates have driven middle-class families to the suburbs.

Almost 50% of the properties are delinquent in paying their taxes, only 8.7% of the violent crimes are solved and Detroit has the highest crime rate in the U.S. for large cities, while manufacturing jobs in the city have fallen from 200,000 to just 20,000 today.

The unemployment rate in Detroit has tripled since 2000 to 16%, more than twice the national average. The city’s public schools have failed, with just 7% of eighth graders proficient in reading.

It takes police about an hour to respond to calls, and the city’s population has dropped by 25% in just the last 10 years, as hundreds of thousands of residents and business fled the city.

Now, the bill is coming due and is a great example of what liberal policies will do to any government entity if left unchecked!

An example closer to home: Chicago recently saw its credit rating triple-notch downgraded, just a few positions above junk bond status because of a $19-billion unfunded pension liability, which the ratings service Moody’s puts closer to $36 billion.

It’s no surprise, given the pressure public pensions are putting on municipal budgets, that any move to ease those liabilities, especially through a bankruptcy court order like what’s happening in Detroit, could set a path nationwide for state and municipal officials, to find a way out of the problems liberal policy decisions have caused.

Detroit will be the first to fight the fight in courts, a fight that eventually will take place in cities across the nation that have overspent their revenue to prove that state constitutions do not override federal laws.

A Democratic judge in Michigan has already ruled the filed bankruptcy violates the state constitution and the ruling is being appealed by the State Attorney General.

The Democratic judge has ordered that a copy of her ruling be sent to President. Obama, saying he “bailed out Detroit” and may want to look into the pension issue. Liberals always looking for a new source of revenue to spend!


Meanwhile, unions aim to protect their pensions from any impairment—a necessity if the bankruptcy is to be successful—by arguing that their promised benefits are protected by the state constitution, never mind that the federal bankruptcy code trumps state law. It also authorizes the abrogation of contracts.

As the lawyers battle in court, the streets of Detroit will continue to suffer from deteriorating services, blight and crime. This is the real tragedy of Motown’s fiscal collapse.

Just remember Detroit the next time you hear a liberal tell you government debt doesn’t matter, except of course, as an excuse for raising taxes.




    Well Cliff, here you go again!

    “…Clinton did nothing…..really terry…..so is doing nothing sending over 22 tomahawk missles at Osama bin buttwipe….just missing him by only 30 minutes …”

    You are really clueless. You are referring to Clinton’s ordering of bombing the pharmaceutical factory. Clinton’s own State Department had one of its divisions — the Bureau of Intelligence and Research — prepare and issue a report on this bombing. The report concluded that Bin Laden was no where near the factory and probably had never been there. The only connection was that he may have provided funding to it. There was also no evidence that it was more than just an aspirin factory. Only one chemical that could be linked to WMD — in this case nerve gas — was found to be in the plant. And it’s level was relatively minimal and could be expected to be present in an aspirin plant.

    This bombing took place on Aug. 20, 1998 — three days after Clinton’s grand jury testimony regarding his sexual relations with Monica. Coincidence? Political diversion?

    Now if you really want to educate yourself on Clinton’s “ferocious” pursuit of Bin Laden, read the book “Dereliction of Duty” by Air Force LTC Buzz Patterson. It extensively covers in extreme “non-classified” detail the number of opportunities that Clinton had to nail Bin Laden and did not take advantage of them. One time, he was on a golf course and was contacted 3 times by this LTC about the location of Bin Laden. Clinton waved him off all three times as he was too busy watching a golf event.

    Now who is this LTC that would have such access? He was the military officer who carried the “nuclear football” from 1996 – 1998. His job was always to be near Clinton in case the nuclear codes were needed. Thus he was the closet military contact to Clinton most of the time.

    So go educate yourself, Cliffy, before you keep vomiting your BS.

  2. Those nasty conservatives and Bush did it again.
    “Detroit’s million-dollar misplaced check only a symptom of collapse”
    In late February, cash-strapped Detroit received a $1 million check from the local school system that wasn’t deposited. The routine payment wound up in a city hall desk drawer, where it was found a month later.

    This is the way Detroit did business as it slid toward its bankruptcy filing, which it entered July 18. The move exposed $18 billion of long-term obligations in a city plagued by unreliable buses, broken street lights and long waits for police and ambulances. Underlying poor service is a government that lacks modern technology and can’t perform such basic functions as bill collecting, according to Kevyn Orr, Detroit’s emergency manager.

    “Nobody sends million-dollar checks anymore — they wire the money,” said Orr spokesman Bill Nowling. Except in Detroit.

    Union rules have “bumped” workers into positions they aren’t qualified for as departments make cuts, he said. The city has no training programs and doesn’t evaluate employees in 2,500 job classifications.

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