Tag Archives: Detroit

News

Why did Detroit go bankrupt? Who is to blame? Whose fault was it?

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This article from Front Page magazine traces the history of the city of Detroit.

Excerpt:

Beginning in 1962, Detroit has endured a steady diet of Democratic mayors and their social welfare agenda. Beginning in 1962, Mayor Jerome Cavanagh ushered in a “Model City” program to a nine-square-mile section of the city. It was based on a Soviet Union-style approach, aimed at rebuilding entire urban areas all at once. The effort was funded by a commuter tax and a new income tax that Cavanagh told residents would be paid by “the rich.” Yet the same central planning that that formed the heart of the Model City program was extended to the people themselves, who eventually resented being told by government how to run their businesses and their lives in exchange for government goodies. Unsurprisingly, the program was a monumental failure.

Then there were the riots. In 1967, police broke up a celebration at a “blind pig.” Blind pigs were after-hours clubs that featured gambling and prostitution and had been part of the traditional black culture in Detroit since Prohibition. The political leadership considered them antithetical to the Model City program. An enraged neighborhood did not. People took to the streets, igniting the worst race riot of the decade. Black-owned business were looted and burned to the ground. Forty people were killed and 5,000 were left homeless. Thus began the “white flight” out of the city center, totaling 140,000 people over an eighteen month period, ensued. The city never recovered.

None of this stopped the progressive agenda from continuing to be implemented. Public employees were given precisely the exorbitant wage and benefits packages that are coming back to haunt the city now. This Democrat-fostered attitude extended to private sector unions, whose equally exorbitant packages, along with efficiency-strangling work rules, made the cost of doing business in the Motor City prohibitive. As a result, much of the car industry that formed the city’s employment backbone left for right-to-work states that provided a far less hostile — and far more affordable — business climate.

As chronicled here, the same progressive-inspired insanity destroyed the Detroit public school system (DPS), which itself stands on the brink of bankruptcy. This tragedy is highlighted by several sad realities. In 2009, DPS students turned in the lowest scores ever recorded in the national math proficiency test over its then-21-year history. The state of Michigan, led by Detroit, has one of the highest black-white achievement gaps in the nation. As of June 12, only 1.8 percent of the system’s students were capable of doing college level work.

Yet by far the most telling indictment of the system is this mind-bending reality: a full 47 percent of city residents are functionally illiterate.

The governor of Michigan Rick Snyder has just come out and said that he will not ask for a bailout from the federal government of Detroit.

Excerpt:

Michigan Gov. Rick Snyder and the bankruptcy specialist he appointed to fix Detroit’s unprecedented financial problems put the blame Sunday squarely on the city and defended their decision to file for Chapter 9.

The Republican governor said Detroit created the problems and stood steadfast behind his decision to file Thursday for bankruptcy, with the city roughly $19 billion in debt.

“This is a tragic, difficult decision, but a right one,” he said. “It’s not about just more money, it’s about accountable government.”

He said corruption and city leaders ignoring warning signs for 60 years contributed to the problems. Among his biggest concerns, Snyder said, is the decline of municipal services for Detroit’s remaining 700,000 residents, including police response times of nearly one hour.

Thank God. Maybe now they will start to elect Republicans for the first time in over 50 years.

Videos

Steven Crowder returns to Detroit and investigates what went wrong

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Here’s his latest video. (H/T Big Blue Wave)

I have friends in nearby Oakland County and it’s like a different world as soon as you get outside of the Detroit city limits. Detroit is a blue city in a blue state.

News

Understanding why Democrat policies don’t create jobs

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Before we take a look at why Democrat policies don’t crate jobs, let’s first make sure that Democrat policies don’t create jobs. As it stands, Obama policies have lost 3 million jobs and driven the unemployment rate to 9.7%. But let’s take a look at an example to show that his socialist policies failed to do what he promised (and I think he sincerely believed) they would do.

New Hampshire gets $413 million, creates 34 jobs

Now! Hampshire reports:(H/T ECM)

The stimulus package is working and has already “improve[d] the number of jobs” in New Hampshire, according to Rep. Carol Shea-Porter (NH-01) in a recent radio interview with WGIR radio personality Charlie Sherman.

“New Hampshire certainly has seen some jobs come and, actually, we grew jobs. We’ve actually had improvement in the number of jobs,” said Shea-Porter.

Shea-Porter’s comments notwithstanding, New Hampshire has lost roughly 16,000 since the beginning of the year and the New Hampshire Union Leader reported recently that the stimulus plan has thus far created only thirty-four fulltime jobs despite the $400 million plus dollars that have come into the Granite State from the federal government.

Obama is very surprised by this unintended consequence of his anti-growth, anti-business policies. He meant well. Aren’t good intentions enough to create jobs?

Democrats in Michigan

The American Thinker writes about how Democrats plan to create jobs to alleviate Michigan’s over 15% unemployment rate.

  1. “Hiking the minimum wage to $10 an hour for all workers.
  2. Imposing a blanket moratorium on home foreclosures for 12 months.
  3. Cutting utility rates 20% across the board.
  4. Requiring all employers to provide health care to their employees.
  5. Hiking, by $100 a week, and extending, for six months, unemployment benefits.”

Let’s take a look at these one at a time.

  1. If you force employers to pay more for each employee, and employers are still getting the same amount of production from each employee, then the employer will lay off the least productive employees and fewer employees who can offer better productivity for the higher salaries they are required to pay. Raising the minimum wage RAISES unemployment.
  2. If you force banks to not foreclose on homes, then banks will take huge losses and have less money to lend anyone else. Small businesses, new home buyers and existing homeowners will suffer, as well as bank shareholders.
  3. Cutting utility rates by 20% across the board will make consumption increase while supply decreases, causing a shortage. This would lead to blackouts, which is exactly what happened in California when the Democrats tried to do the same thing.
  4. If employers are forced to provide health care for all employees, they must pay more for each employee for the same amount of productivity. This will result in increased unemployment and reduced hiring as employers reduce their number of employees. The least productive employees are the first to go.
  5. Raising unemployment benefits will create a budget deficit that has to be filled by spending cuts or, more likely, tax increases. Tax increases cause the most productive people like investors and business owners to dial back their productivity. That raises unemployment.

Michigan is probably one of the worst states in the Union in terms of being run by Democrats who have no idea how jobs are created. You might as well give the job of running the state to a four-year old. Democrats just don’t understand anything about economics. Democrats are trying to fix problems on the basis of what makes them feel good about themselves and what makes people like them.