In any case, Snyder's $137 million credit line will allow the city to
finish its fiscal year till July, when new tax revenues will start
coming in. But within a few months, Detroit will run out this money. And
when it does, absent radical reforms in the interim, Snyder will have to
decide whether to continue bankrolling Detroit's profligacy, engineer a
state takeover or let it go into bankruptcy, precisely the options he
faces now. Since the first two are not viable, it would have been a
blessing for him if Crittendon's lawsuit had killed the consent
agreement and expedited the third. The more time Detroit loses in
renegotiating union contracts, the more it runs up its legacy tab, the
more draconian the cuts that would have to be imposed and the harder it
will be to avoid Greece-style riots.
Many cities across the country are facing unsustainable legacy costs.
But Detroit is uniquely impervious to political solutions because the
ratio of its public moochers to private producers is far higher than
others. There are too few Detroiters with a vested interest in fixing
the city and too many with a vested interest in sucking it dry. Only
bankruptcy will convince them that there is nothing more to be milked.
http://reason.com/archives/2012/07/03/detroit-has-run-out-of-other-peopl
es-mon
There purely logical outcome of public sector unions. For whom doth the
bell toll? Socialized governments the bell tolls for thee.
finish its fiscal year till July, when new tax revenues will start
coming in. But within a few months, Detroit will run out this money. And
when it does, absent radical reforms in the interim, Snyder will have to
decide whether to continue bankrolling Detroit's profligacy, engineer a
state takeover or let it go into bankruptcy, precisely the options he
faces now. Since the first two are not viable, it would have been a
blessing for him if Crittendon's lawsuit had killed the consent
agreement and expedited the third. The more time Detroit loses in
renegotiating union contracts, the more it runs up its legacy tab, the
more draconian the cuts that would have to be imposed and the harder it
will be to avoid Greece-style riots.
Many cities across the country are facing unsustainable legacy costs.
But Detroit is uniquely impervious to political solutions because the
ratio of its public moochers to private producers is far higher than
others. There are too few Detroiters with a vested interest in fixing
the city and too many with a vested interest in sucking it dry. Only
bankruptcy will convince them that there is nothing more to be milked.
http://reason.com/archives/2012/07/03/detroit-has-run-out-of-other-peopl
es-mon
There purely logical outcome of public sector unions. For whom doth the
bell toll? Socialized governments the bell tolls for thee.
No comments:
Post a Comment