Follow Up: But WHY is Detroit Getting Your Money?


As I previously reported in an earlier article, the governor of Michigan put $350 mil in his budget this year to give to Detroit to sweeten the pot for creditors (mostly city retirees with unfunded, fat pensions and gold plated retiree healthcare plans) and try to settle Detroit’s bankruptcy this year. He does not want the bankruptcy to “drag on”. Since Michigan gets 40% of its revenue from the federal government, then basically you and I will end up being the biggest single group of contributors to Detroit’s bankruptcy, not ANY of the people who got them there.
Why would the governor of Michigan do that? Why not just let the bankruptcy courts do their job and let the chips fall where they may?
Well that is answered in this WSJ article:
http://on.wsj.com/1l5Hcvf

Turns out the governor (a republican by the way) is running for re-election this November and this would just about secure his re-election by buddying up with the public service unions.

So Mr. & Mrs. Taxpayer, sleep well tonight knowing that you are ponying up your hard earned cash to assure a politician in another state who’s name you do not even know gets re-elected. And that is what our government has come to.

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3 Responses

  1. Howard,

    I am a retired Detroit Police Officer and an Arizona resident, I am losing all my medical benefits at the end of the month. I cannot get affordable health insurance because a woman In her sixties can be charged triple the premium and I have been quoted between 800- 1100 dollars a month premium to have coverage, I will go without and pay a fine also for not having any.

    We were guaranteed health coverage for life. We were not allowed to pay into the social security system either. Our pensions were supposed to be protected by the State of Michigan Constitution which the governor chooses to ignore his responsibility to honor and protect.

    Now we face big cuts up to 34 percent in our pensions as well, and we did not make big pensions like in Arizona and there was no spiking. The pension is our primary source of income as I said we not able to contribute to social security.

    Please remember these are seniors being affected and how many good paying jobs are there available for people in their 60’s or older to make up for the loss?

    Could you make it with no medical coverage and your income slashed? These are older adults being thrown to the curb and considered nonessential.

    • First, everyone feels bad about people losing benefits.
      Second, MOST or nearly all people who worked in the private sector lost their defined pensions and retirement healthcare years ago.
      Third, any private company retiree who does have healthcare is going to lose it in the next 18 months due to Obamacare.
      Fourth, if your cost of healthcare is really as high as you claim under Obamacare that is because you have a BIG income.
      So in answer to your question, if you have to pay more that seems fair to me. Welcome to the real world.

  2. The STANDARD POLITICAL LINE “years of neglect and disinvestment caused by population loss and a smaller tax base, said Kevyn Orr, Detroit’s emergency manager.”
    Let me interprete that for you… we spent way beyond what we knew we logically should, lined our pockets and let our city infrastructure and residents suffer for years as we built up our debt. Now we are going to spend 500$ million to rip down our homeless squatters homes, blow off our debtors and rebuild at the expense of every taxpayer across the US. We blame this on recession and a reduced tax base even though it was obvious hard times were here for everyone except us, because we had our own agendas, were protected by the walls of the city, didn’t listen to our residents and had our heads up each others donkey.
    At least they don’t have a money eating “spring training facility” and their homeless in a vacant racetrack…

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