Policy: Economy

Morning Examiner: Obama lets Detroit go bankrupt

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Beltway Confidential,Conn Carroll,Morning Examiner,Barack Obama,Detroit,Economy,Analysis,Detroit Bankruptcy

Mitt Romney didn’t choose the title of his Nov. 18, 2008 New York Times op-ed on the auto industry bailout, The Times did, but President Obama effectively used that title against Romney throughout the 2012 presidential campaign:

Let Detroit Go Bankrupt

Now, karma seems to be paying Obama back. The city of Detroit filed for Chapter 9 bankruptcy protection in federal court Thursday, and the White House did nothing to stop it.

“We refused to throw in the towel and do nothing,” Obama said from the White House in October 2012. “We refused to let Detroit go bankrupt, I bet on American workers, and American ingenuity and three years later that bet is paying off in a big way.”

Somebody forget to tell Detroit that Obama’s policies were working so well. The city has more than $18 billion in unfunded liabilities, and ran a $237 million deficit in June of this year alone. Note that the city hasn’t had a Republican mayor since bell bottoms were fashionable and has had only one Republican city council member.

The reality is that Detroit’s bankruptcy is not Obama’s fault. Years of complete Democratic control of the city are. Elections were won by making huge promises to government unions, taxes were raised to try and meet those promises, and then businesses and families left the city to escape those taxes. The Democratic response? Even higher taxes on those who remained along with exemptions for the politically connected.

Obama’s policies are doing to America today exactly what Democrat policies did to Detroit for the past 40 years: hike taxes, increase regulation, payoff political allies, and make entitlement promises that are guaranteed to bankrupt the system.

Fortunately America has a Republican-controlled House of Representatives to block as much of the Obama agenda as humanly possible.

From The Washington Examiner
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Shikha Dalmia: Without big changes, Detroit won’t have a second act
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Lefty Playbook
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Sarah Kliff on the Obamacare provision that terrifies insurers.
Jonathan Cohn says the Obamacare train still hasn’t wrecked.

Righty Playbook
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Jonathan Strong on the coming pro-amnesty air war.
Karl Rove on Obamacare’s fracturing coalition.

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