Medical Tuesday Blog
The Tax, Spend, And Regulate (TSR) Party Can’t Manage City Finances Either
Detroit faces a takeover by an emergency manager. The move by Michigan’s governor would take control of the state’s largest city out of the hands of elected leaders. Detroit, with an annual deficit of $327 million, the state of Michigan is taking on one of the most difficult turnaround projects ever attempted: a rescue of a sprawling city with $14 billion in debt, a depleted tax base, a legacy of government corruption—and very little time left to avert financial collapse. The city is on pace to run out of cash by June and, in the eyes of the state, unfit to govern itself. Gov. Rick Snyder said the financial manager would bring Detroit new promise.
The governor’s decision represents a turning point for a city that was once the industrial capital of America and an engine of its growth. Six decades ago, Detroit was a city of nearly two million people brimming with factory jobs that offered immigrants from the South and abroad a pathway into the American middle class. Today, it is a city of just over 700,000 residents, confronting widespread poverty, blight and diminished municipal services.
The manager will have sweeping power to set the financial direction of the city. The appointee will also have the ability to break municipal labor contracts starting later this month when a new state law takes effect. Elected leaders in Detroit could lose their jobs, but the emergency manager could also retain some of them by setting new salaries and modifying duties.
When President John F Kennedy lower tax rates in the 1960s and improved tax revenue in the process, we thought this would educated the TSR party that raising tax rates would be counterproductive. But it only lasted one term.
Some of us forgot that JFK also allowed government workers to unionize. This eliminated all thoughts of fair taxations and allows government unions to destroy our heritage with incessant irresponsible taxation and spending increases. This has now lasted for 50 years.
When Washington is shown to be unfit to govern, who would be able to be the manager of the United States of America and re-introduce fiscal responsibility?
Fiscal Myths originate when TSRs take over the government and not worry over finances.