I never thought I would say it, but the Obama administration has made a wise fiscal policy decision.
On Thursday, the City of Detroit, Michigan filed for Chapter 9 bankruptcy on nearly $20 billion of debt. For many years Detroit has been in a state of disheveled disarray and rode the downward spiral to insolvency, all financial warnings notwithstanding.
Now that the process has begun, city officials will need to draft a plan that will disperse fractional earnings amongst secured and unsecured creditors, as well as find the solution to keeping the pension system from going belly up for the nearly 20,000 retirees in the system.
My first thought after seeing the news was to tweet this picture:
But my prayers have been answered. If bailouts are to the Obama administration as unhealthy snacks are to a couch potato, then President Obama has decided to put down the bag of Lay’s and make a lifestyle change.
In a press conference on Friday, White House spokesman Jay Carney assured the press pool that the administration was “monitoring the situation closely,” but had no plans to bailout the City of Detroit as they did the automotive industry. Happy day!
It’s important to remember, though, that this does not mean that the president has ceased his trend of unending hypocrisy. A year ago, he was on the campaign trail declaring that the auto bailout saved Detroit from the grasp of bankruptcy, and harshly criticized his electoral opponent Mitt Romney for having advocated for it in 2009. In fact, this line was one of the lynchpins of Obama’s entire populist campaign, which makes the irony that much more bittersweet.
Hopefully I won’t have to eat my words in the coming weeks and months. Don’t put it past the Obama administration to let the issue diffuse and then decide to get involved as a way to keep the president’s reputation from falling further in the polls, if not for debatably legitimate reasons.
And let this unfortunate situation be a lesson to all of America: Detroit is output of the progressive input in our governments, local and national. If we keep on our current path of unsustainable debt, before we know it, the whole country will look like Detroit.
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