Letter From America (About Detroit)

Suicide by Government

Detroit is responsible for its own demise.

By  Rich Lowry 

 

NATIONAL REVIEW ONLINE           

www.nationalreview.com          

July 23, 2013 4:00 AM

 

The case of the city of Detroit isn’t much of a murder mystery. Various suspects have been fingered in its demise: The global economy. The fall of the auto industry. The decline of manufacturing generally. But it’s simpler than that. Detroit died of its own hand.

The city undertook a controlled experiment in what happens if you are governed by a toxic combination of Great Society big spenders, race hustlers, crooks, public-sector unions, and ineffectual reformers. It spent and misgoverned itself into the ground. It tried to defy the axiom of the late economist Herb Stein that “if something cannot go on forever, it will stop.” Detroit’s bout of self-destruction lasted for a few decades, and now may finally stop only when there is little left to destroy.

The city was at the pioneering edge of urban liberalism and discovered that all the social spending in the world doesn’t deliver order, family stability, education, economic dynamism, or effective governance. In the hands of Detroit’s rotten political class, it proved inimical to all of those things.

Letter From America (About Detroit)

The Downfall of Detroit

It took only six decades of “progressive” policies to bring a great city to its knees.

By Mark Steyn

July 19, 2013 6:15 PM

National Review Online

 

 By the time Detroit declared bankruptcy, Americans were so inured to the throbbing dirge of Motown’s Greatest Hits — 40 percent of its streetlamps don’t work; 210 of its 317 public parks have been permanently closed; it takes an hour for police to respond to a 9-1-1 call; only a third of its ambulances are driveable; one-third of the city has been abandoned; the local realtor offers houses on sale for a buck and still finds no takers; etc., etc. — Americans were so inured that the formal confirmation of a great city’s downfall was greeted with little more than a fatalistic shrug.

But it shouldn’t be. To achieve this level of devastation, you usually have to be invaded by a foreign power.

Douglas Wilson's Letter From America

A Drunk Trying to Make the Next Lamp Post

Posted on Friday, July 19, 2013  

by Douglas Wilson 

The old Bobby Bare song, Detroit City, has a refrain that centered on the desire to “go home.” Unfortunately, everywhere else is turning into Detroit City. Pretty soon there will be no home to go to.
Detroit’s bankruptcy, announced yesterday, gives us an opportunity to go over a few fiscal realities, always a good idea if you are careening toward a whole series of fiscal reality checks.

The first thing we must grasp is that we are dealing with levels of municipal debt, state-level debt, and federal debt, that mean a necessary default is coming. If our problems are left untended, we will default. If we wake up in time, and address the pending problem, we will default. This is another way of saying that every genuine solution to the problems created by our fiscal irresponsibility will be a form of default. The only solutions now are defaulting solutions.

The only thing we don’t know is what kind of default it will be. The only thing we don’t know is who the unlucky victim of our defaulting will be.

Government does not make wealth.

Reality Checks

Taking the Hit

Detroit has filed for bankruptcy.  To those who have followed such things it will come as no surprise.  It is not the first and it will not be the last--but it is notable, just the same.  It is the biggest US city ever so to file.  According to The Guardian,

The filing sets a new record for municipal bankruptcies and dwarfs the previous record filings by Jefferson County, Alabama, and Stockton, California. No other city of Detroit's size has ever gone bust.

The causes of this final act are strikingly obvious.  But because the end has come after a lingering terminal decline folks assumed that because it did not happen quickly, it would never happen.  The bigger fools of the next generation would always be there to take the accumulated burdens of their predecessors.  What was the problem?  Municipal overspending led to growing debt which the city can no longer service, nor repay.  It was passed on to bigger fools.  It is like every bankruptcy.