A judge says Detroit is eligible for Chapter 9 Bankruptcy, and that the city’s Emergency Manager can go after pensions in an effort to pay-off debt.
Susan Tompor from The Detroit Free Press talked with a few of those who might get their hard-earned pensions slashed:
“It makes me sick,” said Wallace, who is single and receives a pension that’s less than $2,600 a month after taxes in addition to Social Security. She started working for the city in 1977 as a 911 operator and last worked in the water department as an analyst gathering data for capital improvement programs. She retired in 2006 after 31 years on the job.
“It’s definitely going to affect me. These people, the karma is going to get them. They don’t seem to care about people,” she said.
They really don’t care about people. They care about protecting their own. That’s what the whole bankruptcy, and the history of how Detroit fell to this level, is all about.
Six years ago, we were forced to acquiesce to Wall Street by ponying-up hundreds of billions of dollars, which really ended-up costing the taxpayers trillions of dollars.
You know, redistributing wealth!
According to Demos, blaming the pensions for Detroit’s plight or blight is highly misguided and simplistic–sorta like when people want to blame “Democratic Party control” for Detroit’s economic ills. Pay no attention to a declining tax base, the 2008 housing crisis that destroyed the city, a disappearing manufacturing industry, risky Wall Street deals, and a state that slashed its revenue-sharing for its largest city.
It’s too bad our wise leaders believe
throwing away spending trillions in countries like Iraq or Afghanistan is more fruitful than spending it here in the U.S. Just imagine what a few billion would do to help Detroit. Heck, just think if the federal government could simply pay the $198 million to alleviate this year’s cash flow shortage!
Selling-off public property to privatized institutions isn’t going to revitalize Detroit, is it? If so, where has this approach worked before? What is considered a “success?”