What happens after six decades of Democrat policies? Detroit. The city that, in 1960, had the highest per capita income in the nation and a population of 1.8 million, is now bankrupt and has lost over a million citizens, down to about 700,000. When I say Democrat policies, I’m also referring to the cozy relationship between Democrats and Big Unions. The auto industry failed for reasons that can be traced to bad decisions by management combined with concessions to union demands. That attitude carried over to the public-sector unions, whose pensions and other perks have now created greater liabilities than the tax base of Detroit can cover. City government ran huge deficits every year, refusing to cut back on spending. This coalition of Democrat politicians and union dominance spelled disaster:
Don’t misunderstand me; I’m not rejoicing over this. But it’s a valuable lesson we need to learn as a nation. Not just cities, but whole states are in the same precarious situation as Detroit now finds itself. Where will the falling dominoes end?
We can’t see beyond California in the cartoon above, but the threat is national. At the federal government level, we’ve gone on a spending spree the last five years that has dwarfed all the deficit spending we’ve done in previous administrations. Obama and his people have attempted to spend us into prosperity; not only does that never work, but it’s logically incoherent.
All the stimulus bills in the world won’t bring prosperity. The administration tries to point to the unemployment rate as a positive indicator. Since when has 7.6% unemployment ever been a positive thing? Especially after four years of artificially pumping up the economy? What they don’t want anyone to know is that we’ve never had so many people drop out of the labor force; consequently, the 7.6% is illusory. It doesn’t count all those who have given up finding a job. Neither does it take into account those who are trying to hold things together with part-time jobs:
Ah, but the stock market is soaring. All is right with the world. That’s another illusion. Much of the gain we’ve seen there has to do with all the money being printed. It’s artificial as well. We are quickly becoming an economic basket case. Something needs to change before we become the United States of Detroit.