The wrong-headed policies of the Social Engineering Liberals caused Detroit to crumble. Welfare was massive in Detroit both public and private. Government mislead the unions into believing they could get high wages and easy work by blaming the car manufacturers and Capitalism for mistreating the workers. Turns out government started the ball rolling downhill by forcing the automakers to pay higher wages for less work. Govenrment made laws that made it illegal to pay workers as little as a living wage.
Unions are pretty savvy. They know when they can get luxury wages with enormous benefits and low productivity. In other words, the workers can operate at a minimal or lower level and government will tip the playing field in the unions favor. When that caused private jobs to dry up government introduced massive welfare schemes. That caused even faster decay so still blaming the capitalists government sent in more and more money. A judge tried to force the bankrupt city to pay 53 million to the pension funds but there was no $53 million. It’s like what happened when BSA Motorcycles went bamkrupt. In 1973 the BSA motorcycle factory closed. There was no money, only debt. But the workers didn’t care. They demanded BSA re-open. But re-opening takes money. There was none.
Just like Detroit. The city owes $2.8 trillion. Some accountants believe Detroit actually owes $5 trillion. The income this year is estimated at 2.6 billion. The debt is 1,000 times greater than the income. It would take 1,000 years to pay off the debt if nothing else was spent. This is a welfare city on steroids, pain killers and printing money. Welfare caussed it and welfare cannot fix it. Welfare ruined Detroit, just like it’s ruined every place it’s practiced.
The kindest thing that could be done for the residents of Detroit is to export them to prosperous places.
Views: 4