Posted on 07/22/2013 11:31:02 AM PDT by jazusamo
President Obama's former head of the Auto Task Force, Steven Rattner, helped orchestrate the auto bailouts that saw billions of taxpayer dollars spent to save General Motors and Chrysler in a rigged bankruptcy proceeding favorable to political allies (i.e., the UAW). Rattner is now calling for taxpayers to come to the rescue of Detroit as the city struggles to restructure through a bankruptcy process without federal handouts.
Rattner penned an op-ed piece for the NY Times that trumpeted the success of the auto bailouts and called for similar action to save Detroit. Rattner likens the Detroit situation to Hurricane Sandy, and as such, deserving of taxpayer money. Perhaps Mr. Rattner should contribute his own money to help the noble folks of Detroit rather than continue to try and redistribute the wealth of others to those he deems worthy.
There were many contributing factors to the bankrupting of Detroit, all of which can be attributed to humans as opposed to an Act of God such as Hurricane Sandy. Many of the residents of Detroit themselves are not as blameless as Rattner would have us believe. The city suffers from the second worse murder rate for major cities in America with only New Orleans ranked lower. Race riots in 1967 led to an exodus of many white Detroit residents. Beyond the crime issue, half of Detroit's residents do not pay their property taxes because they feel they are not getting the service they are entitled to. Detroit's government corruption peaked under Mayor Kwame Kilpatrick (reelected by Detroit's voters in 2005 as the city's "hip-hop mayor") and further drained the city.
Rattner has pointed to the invention of the automobile as another contributor to Detroit's woes. You see, if we never invented those pesky things, people would have had no transportation to leave the city to go to the suburbs! If Mr. Rattner had a sense of humor and we could mistake this for a joke, it would be understandable. But the guy seemed serious. Sorry Steve, but I think residents would have deserted even if they had to use horses and carts.
Of course, the auto industry played a part in Detroit's downfall ; just not in the way Mr. Rattner suggests. The major US automakers, particularly GM and Chrysler, were mismanaged for years, culminating with their bankruptcies in 2009. Detroit's main economic base dwindled along with domestic manufacturers' auto sales when foreign competition just plain built better cars. UAW workers lost their jobs partially as a result of their own high labor costs. The automakers moved much of their operations to the outskirts of the city or further.
I just don't get how Steve Rattner has become such a respected voice for free-market enterprise, something he has totally been at odds with. He is now a regular on a network known for its politically left-leaning views and has come up with some wild commentary there, as well. Just on Friday, during a morning segment on the historical Jesus , Rattner questioned whether Jesus was a terrorist. Again, I am not sure if this was an attempt at snarky elitist humor, but the comment is insulting and insensitive to many Christians.
Of course, I have a somewhat biased view towards Mr. Rattner. I was a member of the non-politically connected GM bondholder group which saw its rights subordinated to UAW interests during the auto bailout process that was orchestrated by the Obama Administration through Mr. Rattner. But I am also a member of a group called the American Taxpayers. And as such, I would urge Mr. Rattner to please stop being so eager to spend my money. Particularly on a situation such as Detroit's.
I'm sure that there are many innocent residents and retirees of Detroit, but the city is in the predicament it is because of crime, mismanagement, greed and corruption. Another federal bailout would just set another dangerous precident. No Mr. Rattner, the Detroit debacle has no resemblance to Hurricane Sandy and is not worthy of another of your taxpayer rip-offs.
Mark Modica is an NLPC Associate Fellow.
Working link:
http://nlpc.org/stories/2013/07/22/obama%E2%80%99s-ex-car-czar-wants-taxpayer-bailout-detroit
Obama is saving the Taxpayer Bailout for Detroit for a special time
How about a democRAT bailout? Since their leadership and policies ran the city into the ground to begin with. Along with Stockton, CA. and......
Which union are they going to give it to?
One way or another normal, hard working, productive people are on the hook for the democrat party’s failed experiment in socialism called ‘Detroit’
I don’t know why Obama doesn’t just give executive orders stating he owns the country. He has no opposition.
Agreed, he’ll make the pitch for it sooner or later.
GM has, at least, some assets which in theory could be sold off to recoup at least some of that money.
What on earth could you sell off in Detroit?
(regardless, I think it’s gonna happen)
Other Democrat-controlled cities are watching carefully to see how they can benefit from the bankruptcy-federal bailout process.
With all this discussion lately about “bailing out Detroit,” people are forgetting we already bailed them out, along with a lot of other cities and states. That’s where most of the Obastard’s vaunted “Stimulus Package” went back in 2009.
Good question. They already took Howdy Doody off the table.
Great point and true, it shows just how far gone they are.
If they bail out Detroit, then there is NO reason for any city to tax its citizens any longer. If federal help is good enough for that city, it’s good enough for all cities.
Why should people pay not only for their city but also pay, through their federal taxes, for other failed cities as well?
Rattner paid a $10 million settlement for pension fraud to NY.
I’m wondering if there’s any exposure in Detroit once the unwinding starts.
What color lipstick do they want to use on this pig?
Bailouts are wrong and set a bad precedence. TARP bailed out the banks and Wall Street which gave rise to the Occupy Movement. It won’t stop at Detroit, more cities will follow if we let this happen. Wealth distribution on a grander scale.
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