Why didn't the auto bailout save Detroit? According to MSNBC reporter, Suzy Khimm, Detroit isn't the big booming industry it once was but merely the historical symbol of what it once was and all the bailout managed to do was save three institutions from being history. It also gave Obama perfect leverage during the 2012 elections and it worked.
There is no longstanding good that came out of the 85-million dollar bailout; so why are taxpayers helping Detroit again? Detroit filed for bankruptcy on July 18, 2013, and Obama bypassed Congressional approval and decided to use TARP and FEMA monies to fund the bailout on his own.
The first bailout only prolonged the inevitable, it gave Detroit two more years before the city went bankrupt and created the leverage needed for Obama to stay at the White House another term. It was all part of a sly strategy but as Sean McAlinden, chief economist at the Center for Automotive Research said to MSNBC's Khimm, “If there wasn't any bailout, those three institutions would be gone–about 5,000 assembly jobs and about 2,300 headquarters jobs.”
Politics bailed out Detroit, taxpayer's had no say in how their money was spent and surely fiscal responsibility means nothing to the current administration. While politicians barter there way through each term playing real-life monopoly and saving face for the next election the rest of us and our cities suffer the consequences. There is no easy answer but clearly raising the debt ceiling with no budget and letting it go on another year is not the answer.
So, what is the answer? There are no easy answers but bailing out the same city twice is foolish and unwise and can be likened to a criminal who continuously lands himself in jail only to be bailed out every time. While the victim suffers the criminal is freed again to continue his rampage without learning a lesson. There should be no more bailouts without responsibility in action and if there is a bailout let the state pick up the tab.