It was not that long ago that Detroit was one of America’s and the world’s great cities. A center of industry and commerce which rose up out of the American Midwest as testament to innovation and ingenuity.
In the attached article Kevin D. Williamson associates functionality and competence a little too closely with Republicans. Saying this his analysis otherwise is right on.
What we saw in Baltimore this week is a symptom of big government urban politics. Why are places like Detroit, much of Chicago, St. Louis, Philly, still large parts of New York, Atlanta, Richmond, a good part of Washington DC, and dozens more cities so poor and so dysfunctional? Largely (but not solely), because in these places the reality of the marketplace is not embraced. (At least not the legal marketplace.)
Why do businesses leave these cities? For many reasons. But a big part is because taxes are too high in major cities, almost across the board. Or perhaps like Seattle the minimum wage is being pushed up to levels which are divorced from reality, which also acts as a tax. There is a reason some cities feel like skeletons, because the business community long ago was picked clean. Urban America killed the goose that laid the golden tax base egg. Now it wonders why all the jobs are gone.
Government Motors is a big black hole of dysfunction. People forget that prior to the 2008 Crash people referred to GM as a healthcare company which just happened to make cars. A pension crisis loomed like nobody had seen too.
Then, poof. World goes into a depression and the union workers get their healthcare and pensions taken care of. Funny how that worked.
GM should be dead and the world would be better for it. Its bailout (along with the big banks) is a disgusting chapter in American history. And as we see in the article attached the bailout continues.
“This ruling padlocks the courthouse doors. Hundreds of victims and their families will go to bed tonight forever deprived of justice. GM, bathing in billions, may now turn its back on the dead and injured, worry free.”
If the GOP was seen as a party of genuine free enterprise (I know, don’t laugh), which made the case to all people that free markets and free prices generate prosperity and that government intervention and cronyism lead to stagnation and despair, the party could make serious progress with non-white voters.
This is encouraging. If there is any place where free market reforms can help people practically immediately it is in the inner cities of the United States. Decades of massive government in our metropolises have created nothing but poverty and war zones, death, addiction, and despair.
No it was not. There are a few union members who made out like bandits and a few more senior managers who got to keep their very generous pensions. It was worth it for the president because he was able to sway Michigan and Ohio by convincing people the auto bailout was for them. But for the rest of us, the world would be better off if GM had died in 2009.
We’ve said multiple times that GM is a company which deserved and deserves to die. It is a shame that this company still treads the earth along with the rest of the herd of bailout dinosaurs.
We are just beginning to get the story on why vehicles were not recalled to GM when they should have been. That the vehicles involved might have shown the government sponsored car manufacturer in a bad light had nothing to do with the slow response of course.
I was talking to an avid NFL fan recently and he thinks the league has seen its zenith and it will be a slow decline from here on out. The brain trauma scandal isn’t helping things and neither are the kinds of deals team owners get.
Earlier this year the Treasury decided to sell off the remaining position it (and the taxpayers) had in Government Motors at a $10 billion loss.
This week Senator Rand Paul, who is likely running for president, suggested that Congress act to pass legislation which would declare Detroit an economic “freedom zone.” That is to lower taxes in Detroit to near 0% levels spurring business activity and development.
We at Against Crony Capitalism wholeheartedly agree with this idea. We even called for something similar last year. Unleash the market in Detroit and the city will bloom.
Few cities have been as ravaged by inept governing and crony capitalism as Detroit has. Because of decades of mismanagement and neglect what was once one of the great cities of the world is now a rusting heap. But it need not remain so.
We couldn’t be more for this. In fact, last year we suggested a very similar idea. We said:
This is a winning strategy for Paul. The cause of truly small government and free markets and free prices isn’t an idea which only works for white folks. It works for ALL folks.
These are annual pensions. The workers are retired. They contribute little if anything to the state of Illinois at this point. And most of these folks probably retired in their 50s, some probably before that.
This isn’t a bailout, a bailout would be much larger, but it is a gift (paid for by you) from the Feds. Mostly a political move to placate some of the restless Dem party loyalists who would like far more for Detroit, I am surprised it isn’t a greater sum. In the end it probably will be.