Detroit files for largest bankruptcy in U.S. history … Prime example of the destruction caused by labor unions … on a track to destroy cities in America and beyond

Posted: July 18, 2013 in Detroit, Labor Unions, Unions
Tags: , , , , , , , , , , , , , ,

Captain Rick: Detroit, motor capitol of the world, has filed for the largest public sector bankruptcy in U.S. history … $18.5 billion. This is prime example of the destruction caused in a major way by labor unions.

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Detroit, pictured above with excellence, has filed for bankruptcy, the largest in the public sector in U.S. History

Words from the Michigan Governor Rick Snyder

“The fiscal realities confronting Detroit have been ignored for too long. I’m making this tough decision so the people of Detroit will have the basic services they deserve and so we can start to put Detroit on a solid financial footing that will allow it to grow and prosper in the future. This is a difficult step, but the only viable option to address a problem that has been six decades in the making. I have reached the conclusion that this step is necessary after a thorough review of all the available alternatives, and I authorize this necessary step as a last resort to return this great City to financial and civic health for its residents and taxpayers. This decision comes in the wake of 60 years of decline for the city, a period in which reality was often ignored.”

He also said that 38% of the city’s budget is being spent on “legacy costs,” such as pensions and
debt service. He said police take almost an hour to respond to calls, compared to a national average of 11 minutes, and that 40% of street lights in the city are turned off.

Labor Unions are destroying America

Once serving a great purpose of job safety, labor unions have become an empire of greed for wealth over past decades. Their greed has destroyed millions of American jobs. Auto companies in Detroit were forced to build plants in and source parts from places that were less union friendly in an effort to stay profitable. Unions helped destroy Detroit. This bankruptcy of Detroit, once America’s fourth largest city (now 18th), is the culmination of that destruction.

My purpose with this report is not to expound on the details of this record bankruptcy, for they will be broadcast around the world by the media in coming days. My focus is on the destruction to America, caused in a significant way by labor unions.

Across America, our companies, cities and states are significantly influenced by powerful unions, especially those representing police, fire and civic service. I urge all employees who are members of a union to consider severing your membership in an effort to protect the future wellbeing of your company, so that it does not have to relocate … or your city, so that it does not eventually have to file for bankruptcy, like Detroit. I urge city and state officials to do what is possible to curtail or limit agreements with unions, in an effort to help prevent the need for our cities and states to file for bankruptcy, like Detroit. Many more American cities are following closely in Detroit’s path. America has not yet experienced its first state bankruptcy … but its just a matter of time. There are thousands of fiscal ‘time bombs’ waiting to explode across America, especially those concerning employee pensions.

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Associated ATRIDIM NEWS JOURNAL Report Categories:

Labor Unions

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Comments
  1. If the unions don’t destroy America, we can expect all of these retirees from Leftist-run cities to flood to the insurance exchanges, where the federal government (taxpayer, etc) will “subsidize” the insurance premiums. Then of course, “Amnesty” in any way, shape, or form will ensure total destruction. Other than that, the economy is “recovering.” None of us live in a vacuum somewhere in Galt’s Gulch where we will be safe from it. However you want to look at it, America isn’t the bastion of Individual Freedom it used to be. America’s producers are the “new serfs” whose earnings will be continually drained for the “common good.”

  2. I know history teaches of the decline of not just great cities, but empires as well. Still, it seems surreal. Thanks for posting the words from the governor. I do not live in Michigan, but I live in the USA and to see an American city, rich with history, in such a bad way, touches the heart. I wish the city and the residence well.

  3. Here’s a quote from something I found over the weekend about the Detroit bankruptcy filing, and if your are in government at any level it’s a lesson that needs to be internalized:

    “If you make political promises that can only be met through increased tax rates, now or in the future, you begin the process of slitting your own throat. That outcome is inevitable when you agree to political promises that have escalating expenses over time as pensions, medical benefits, salary “step” increases, bond issues that have a payment schedule longer than the useful life of the asset bought and similar.

    There is no way out of this box other than to repudiate those promises. Those who were made them inevitably try (and sometimes succeed) in getting supra-legal protection for their “benefits” but no amount of legal arm-twisting can change arithmetic.”

    The rest is well worth the short time it will take to read it. You can find it here:

    http://market-ticker.org/akcs-www?post=222858

  4. Bill Whitney says:

    Truly amazing of what is happening to our cities, large & small, across our nation. As a former Michigan resident, I think Detroit’s problems began in the late 60s when the race riots marked a turning point in it’s history, setting the stage for the onset of decline. I was a kid growing up in Michigan’s second largest city, Grand Rapids. Our city, situated on the western side of the state compared to Detroit on the east, presented not only a geographical distance, but a difference in labor, political, social and racial beliefs. As a kid and young adult, I can remember reading those newspaper headlines: “White Flight”; “Detroit’s Drug Epidemic”; Detroit Has Highest Crime Rate in the US”; “Arson Capital of America”; “Devil’s Night”; “Highest Unemployment Rate in the Country.” This was what was occurring in the “motor city” during the 70s and 80s. And, here we are today – Chapter 9. See more details here: http://en.wikipedia.org/wiki/Decline_of_Detroit

    • atridim says:

      Bill,
      Sincere thanks for your eyewitness report and the helpful link. It all compliments the in depth report of the ‘Rise and Fall of Detroit’ I am working on. Your journalist skills are excellent and welcome on ANJ anytime.
      Captain Rick

  5. atridim says:

    BANKRUPTCY UPDATE: December 3, 2013
    Judge Steven Rhodes rules that Detroit’s Chapter 9 bankruptcy filing, the largest public bankruptcy in U.S. history, can proceed. Rhodes also rules pensions can legally be cut in bankruptcy, but essentially said that he wouldn’t approve pension cuts unless the entire plan of adjustment is fair and equitable.

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