Pensions, Pensions, Pensions

The city of Detroit is buried in pension and health fund debt. That is a simple statement but of course there are two question; what or who caused this disaster and what is the answer to the city coming out of bankruptcy?

My liberal friends will quickly point to corporate greed as the cause of the demise of this once great city and they are to a point correct. The big three automakers give to the unions on retirement benefits and health care services and gave and gave. The auto industry found it easier to give future benefits to its employees without considering the impact on the bottom line. This was in lieu of taking a strike and negatively affecting the performance of the most recent CEO’s retirement bonuses and corporate profit performance record. Really can’t blame the unions for taking everything they could get from the “avoid at all costs strikes” auto industry management.

However before my liberal friends stop shaking their collective heads in agreement with this analysis let’s not forget it is the city of Detroit that is billions of dollars in debt from pension and health funds. The city had no reason to allow their city to agree to outrageous union demands for retirement benefits that would break the budget of a once growing city. Like the auto companies it was easier to give what the unions wanted rather than face unhappy employees who might not vote for them in the next election. It seems impossible to believe that city management didn’t see the financial cliff coming but then we forget about politics and graft.

The politics were centered in the democrat party and its total domination of the city of Detroit. Add in crooked mayors [not just Kwame] and crooked “public servants” and it is inevitable that this city would fall. And yes race does play a roll. I remember Mayor Coleman A. Young answering the question why did a black man get elected as opposed to a competent white? Coleman said [in a city of approximately 85% black residents] that it was “better a black crook than a white crook.” When other cities like Cleveland and Pittsburgh went through a deep financial downturn they regrouped to rise again and are model cities in today’s tough financial times. There was a believe that if the Detroit political operatives stayed loyal to the democrats in congress and when a half black president was elected the city would benefit from federal aid, after all it had worked for fifty five years! But alias, the federal funds started to run out, the state of Michigan started to run out of money even when they had a democrat governor and like many other states they were required to deliver a balanced budget, something Detroit had not seen in forty plus years.

Let’s face it the haves in Detroit who have lived off of the tax funds and democrat influence supported crooks like Kwame and his mother and father as they fleeced the already dieing city.

I’m certain that my liberal friends who support universal health care, union growth, civil servants as a voting block and “taking care of those poor people who can’t or won’t work” will have a totally different take on this bankruptcy. Of course the facts are pretty hard to ignore 18 billion in debt, 7 billion in unfunded health care services, 6 billion in retirement benefits that must be paid and then say to the rest of Michiganders it’s not the residents, political leadership or city management that is at fault. Shame on those liberals who would have the audacity to claim it is not the political machine, unions and corrupt management of the city that caused this bankruptcy.

How does Detroit come out of bankruptcy, cut, cut, cut and then manage in a fiscally sound manner.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s