Detroit’s bankruptcy shows that federal bailouts for industries can’t solve all the country’s problems, especially when cities are sinking under the weight of generous municipal contracts for public employees. It’s true that many other cities that are facing shortfalls because of debts they’ve signed off on to pay off unions are working better than Detroit, where 40 percent of the street lights don’t work and it takes nearly an hour for police to arrive at an average high-priority emergency.But unless the power of unions to bankrupt municipalities and state governments is cut back—much as Wisconsin’s Governor Scott Walker and New Jersey Governor Chris Christie have tried to do—everywhere, Detroit won’t be the last city to go bankrupt. The accumulation of debt to pay off the promises made by liberals is a problem that threatens cities all over the country, even some that are seemingly in much better shape than Detroit.
The Obama paradigm of building more entitlements like ObamaCare and throwing federal money at regional problems is based on the liberal assumption that the government piper will never have to be paid. Democrats have blasted their Republican counterparts as heartless Tea Party extremists and obstructionists for refusing to play along and let the system go on as it has for decades building debts that can’t ever be met. But unless someone or some group is able to enact real change, Detroit is America’s future, not, as some are telling us, an exception to the rule.
This week we got a wake up call that tells us that Obama didn’t save Detroit from bankruptcy. He is merely one more in a string of liberal enablers that helped create the situation there that may well be replicated elsewhere eventually, even in cities that are not in as dire straits today as Detroit is. It’s time for America to sober up and realize that without government reform based on the end of liberal illusions, Detroit will become a metaphor for how America became like Greece: bankrupt, corrupt, and a shadow of its past faded glories.
Update: A county judge in Detroit has halted the bankruptcy proceedings, noting that the filing does not honor President Obama!
Here she is.
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