By Doc Vega
Under the weight of entitlements and liberal fiscal policy the “Motor City” finally falls
Detroit, once a major center of America’s industrial might, a symbol of US productivity to be proud of has buckled thanks to Democratic leadership and the typical big government consumption of fiscal impossibility. Detroit epitomizes the failure of Democratic fiscal policy along with many other cities of the northeastern United States that comprise the “Rust Belt” where once shining examples of capitalism has been rendered into poverty thanks to the progressive agenda.
Once a formidable economic model
Detroit spawned the “Big Three” Ford, GM, and Chrysler comprising the biggest car makers in the world. Whose mighty capacity for production had retooled during World War II and shifted their speciality from auto making to mass manufacture of Sherman Tanks, half-tracks, the jeep, and powerful, dependable, troop trucks. Ultimately, it was America’s ability through cities like Detroit that out produced our Axis Forces enemies, and turned the tide of the war like no other power that could have been reckoned with. Without Detroit’s capacity and the will of its workers the war effort might have proven even longer and more costly than it had.
What they do to innovators
However, having been under Democrat rule for decades and the typical policies of spendthrift economics much as we see President Obama as he blows through one debt ceiling after another, 18 billion in debt finally broke the Camel’s back! H. Ross Perot, a dynamic business man who owns many corporations along with his own Alliance Airport in North Texas ran for the presidency under the pretext of running the government like a business that must exceed its losses and show a profit. Of course, he scared the hell out of Washington and they made sure he would never occupy the oval office, but Perot had a point. This was the same point that Mitt Romney, another exceptional businessman would echo in 2012. He wanted to run the federal government under the applied principle of private sector business.
What did the Democrats do in response to these two sterling men of business who knew how to apply sound fiscal principles? They assassinated the character of these two men. The Democrats, the moderate Republicans, the liberals, the establishment of Washington DC who do not want the federal government run under the aegis of transparency of sound rules of commerce that dictate responsible policies that prevent deficits, duplicity, unnecessary bureaucracy, and the kind of corruption that has amassed a deficit that exceeds the GDP of the entire US private sector economy at more than 16 trillion dollars. Recently an accounting study placed the actual federal government liability for unpaid obligations such as the Social Security payouts in the very near future at as much as 221 trillion dollars!
A pattern of failure
At 18 billion dollars, Detroit is the largest US metropolitan city to succumb to bankruptcy following in the footsteps of such towns as Flint, Michigan, Stockton, California, and San Jose, CA the very bastions of liberal playgrounds where big government spending ensures that citizens suffer from slow emergency response and the cut back of basic city services such as trash removal. This is emblematic of the irresponsible use of government and the debt it takes to pay for it being used to buy votes as a soaring debt looms in the future.
The Reagan formula
In the 1980’s many nations could not amass such debt as 18 billion much less have an economy that could produce such numbers. President Ronald Reagan tried to get Americans to understand just how much debt the US government was amassing and how monstrous the government’s appetite for tax revenues had become, but a democratically dominated Congress and Senate refused to cooperate. Reagan began cutting the size of government much to the chagrin of the big government collectivist movement on Capitol Hill. President Reagan lowered taxes on individuals and corporations as Democrats howled in protest. Guess what happened? Thanks to that senile old man that the left never stopped criticizing and vilifying, Reagan created more than 20 million US jobs and completely turned the worst recession in US history at the time into a prosperous recovery.
Today, we in America are under a siege of intentionally destructive economic policy under Democrat leadership. US cities in many states are falling victim to the ravages of big government and its characteristic out of control spending. That spending is not for the good of the people. It is a tool used to buy votes in order for the leftist cause of the Democrats to stay in power. They are not concerned with the cumulative effect of the cost of big government or the ridiculous tax revenues and policies it will take to keep up with it. Each year lawmakers on Capitol Hill pass hundreds if not thousands of bills and new laws designed to further regulate. Those regulations must be enforced with ever increasing resources of the government. Reagan also reduced the impact of government agencies and their attack on American businesses as part of his successful plan.
Government discourages business
Today, the United States with its excessive regulatory agencies and the highest corporate taxes in the world distinguishes itself as the most hostile environment for the establishment of any new corporate enterprise. INTEL cannot afford to build a new plant in the US. Employers are forced to conduct business in foreign jurisdictions that are more tax friendly. More than a trillion dollars currently available for investment in businesses and hiring in the US is being held outside of the United States due to excessive taxation and over regulation.
Democrat policy killed Detroit
Detroit has been run like the goose that lays the golden egg until that bird can no longer keep up with the greed and lack of respect for the money it takes to politically implement the kind of leftist policies and entitlements that have wrecked the Motor City. Detroit has also become a haven for foreign immigrants who live on the dole and tap the endless resources of tax payer’s money used to attract the kind of voter who couldn’t care less about this fiscal insanity! Detroit represents the future of our entire nation as our federal government promotes dependency and social engineering as the deficit grows to more perilous levels. Detroit city officials have even rejected state overtures to repair city property and lease it from the city as a revenue solution, but no. Let us take a good long look at another Democratic orchestrated fiscal fiasco as an example not to follow if we are to see America survive in the near future.