Although the Obama administration and the labor unions want Americans to think the bankruptcy of Detroit is an isolated matter, it most definitely is not.
Detroit's bankruptcy filing sent a panic mode down the backs of municipal bondholders, government employees, and big-city urban residents throughout the United States.
Why?
It is due to the shakiness of local city governments within the largest 61 urban areas in the country. The exact sort of problems, such as retirement funds and worker benefits Detroit finally collapsed under this summer.
How bad?
These select cities have amassed $118 billion in unfunded healthcare liabilities. Ridiculous shortsighted city governments promising to pay pay healthcare benefits to municipal workers beyond the employee contributions to finance those funds. It is inexcusable, but clearly forecast-ed years ago and met with utter disregard by urban planners.
"Too big to fail" is now a phrase that has lost any meaning. Just ask cities on the brink such as Chicago, Philadelphia and New York City.
Here is a brief list of the most endangered US cities falling into the category of “Too big to fail,” but on the edge of Chapter 11 bankruptcy filing:
1. Compton, Calif..
2. East Greenbush, N.Y.
3. Fresno, Calif.
4. Gulf County, Fla..
5. Harrisburg, Pa.
6. Irvington, N.J.
7. Jefferson County, Ala.
8. Menasha, Wis.
9. Newburgh, N.Y.
10. Oakland, Calif.
11. Philadelphia School District, Pa.
12. Pontiac, Mich.
13. Providence, R.I.
14. Riverdale, Ill.
15. Salem, N.J.
16. Strafford County, N.H.
17. Taylor, Mich.
18. Vadnais Heights, Minn.
19. Wenatchee, Wash.
20. Woonsocket, R.I.
A vast majority of the above cities have been under Democratic control for decades.
Although most of these endangered cities have cried out for federal bailout funds, the stark truth of the matter is “With what money?” The Chapter 11 bound bankruptcies are gaining little sympathy from Conservative Republican lawmakers who are shouted down for leaner fiscal policies by the labor unions and liberals in general.
The view among conservatives in Washington is that a federal bailout would only reward cities for their own bad behavior. But that won't stop the unions from trying. Ironically, most of the fiscally-strapped cities are located in states with forced unions, non-right-to-work states.
But the Democratic leadership in Washington, dependent on their union base of voters, will not acknowledge that stark fact. Labor unions control state legislatures and city halls in non-right-to-work states.
The math from that point becomes as simple as opening the books for general consumption and the need to face fiscal reality as adults and not political animals whining for taxpayer relief. Who wants to pay taxes for retired city workers when they don't provide any services?
Adult reality unrealized by childlike politicians.
Something bankrupt cities such as Stockton, CA and Vallejo, CA should have seen coming by their city planners decades ago, but chose to close their eyes and appease the unions. Now they want a taxpayer bailout and it will not happen anytime soon no matter what the Obama administration says.
The two real world choices are to stay the course and become Detroit, or vote out the current political leadership and tighten the fiscal belt.
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