Last week Detroit announced that they were declaring Chapter 9 bankruptcy in lieu of $18-$20 billion in debt. Kevyn Orr, Detroit’s emergency manager recommended the bankruptcy and Michigan Governor Rick Snyder gave his authorization. However, just a few short days later, Ingham County Circuit Judge Rosemarie Aquilina ruled that the bankruptcy violated the state constitution and therefore had to be withdrawn. The state constitution forbids anyone or anything from cutting the pension benefits of public employees.
But what led Detroit down the road to financial ruin and the need to file for bankruptcy protection? The city was a thriving metropolis and the center of the automobile industry and Mo-Town music. But then the Democrats took over control of the city in 1962 and have had their greedy hooks in it ever since. After 51 years of Democratic rule, this is what Detroit looks like today:
- 40% of the streetlights don’t work
- 210 of the 317 public parks have been permanently closed
- Nearly 1/3 of buildings are abandoned
- It takes police nearly an hour to respond to a 9-1-1 call
- Some homes listed for $1 and realtors still can’t sell them
- Population dropped from 2 million to 714,000
- Unemployment rate in July 2009 hit 27.8%
- Current unemployment is 16.0%, more than double the national average
- 98% of other cities have lower crime rates and are safer than Detroit.
- 51 years of Democratic mayors
The way Barack Obama and Washington Democrats want to spend money, like there’s no tomorrow, we’ll be in the same position as Detroit in the very near future. Before resigning his House seat, Jesse Jackson Jr. was pushing a stimulus plan that would have cost $3 trillion over five years. Another fiscally irresponsible Democrat is Rep. Maxine Waters of California who tried to push a stimulus plan to $1 trillion on just social programs. Obama continues to throw billions of dollars to green energy companies that fail. Reid and Pelosi kept proposing jobs bills that would cost hundreds of billions of dollars while creating very few jobs. The current immigration reform bill, which I admit have some irresponsible Republicans supporting it, will cost the nation over $6 trillion. Let’s not forget the hundreds of billions of dollars that Obamacare is going to cost the nation.
Add all of these up and you end up with the US being in the same financial condition as Detroit. The US owes trillions of dollars to other countries and if any or all of them decided to call in their loans, the US would be in a world of hurt and forced to follow the example set by Detroit. It’s not going to take us 51 years to get there either; rather it could happen within the next four years, before Obama leaves office.