And in this Fox News interview, I elaborate on these arguments and warned that federal government profligacy – if unchecked – will lead to similarly dismal results for the entire United States.
Dan Mitchell Commenting on Detroit’s Bankruptcy
I want to augment on a couple of my points.
First, I explained that Detroit’s bankruptcy won’t have any major and long-lasting ripple effects – assuming politicians on the state or national level don’t encourage more bad policy with bailouts. If you’re a creditor, it’s not good news that the city owes you money, and it’s also not a cheerful time if you’re a retired bureaucrat hoping for years and years of pension payments and healthcare subsidies, but there’s no reason to expect that Detroit’s problems will impose significant damage on Michigan – particularly compared to the harm that would be caused if Detroit was allowed to continue with business as usual.
Incidentally, this approach is even bolder than the Medicaid and Medicare reforms in the GOP budgets.
Third, I expressed some optimism that the United States has a chance to implement these much-needed reforms, in part because countries such as France and Japan will blow up before America.
And each time another nation, state, or city gets into trouble, it will strengthen our arguments to put the federal government on a long-overdue diet.
Big problems for America if politicians leave government on auto-pilot
Having a strong argument, though, is not the same as having an argument that will prevail. So even though America still has some breathing room, and even though the economic and moral case for spending restraint is very powerful, we’re in the unfortunate situation of having to rely on politicians in Washington.
In conclusion, I can’t resist drawing your attention to something I wrote back in 2011, when I showed the eerie similarity of Detroit’s collapse with the “blighted areas” in Ayn Rand’s classic novel, Atlas Shrugged.
I have written about the tremendous increase in the food stamp program the last 9 years before and that means that both President Obama and Bush were guilty of not trying to slow down it’s growth. Furthermore, Republicans have been some of the biggest supporters of the food stamp program. Milton Friedman had a […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Big government will destroy the human spirit. Political Cartoon: Smothered by Big Government December 16, 2011 by Dan Mitchell […]
Welfare state may drag England down the tubes!!!! Very Funny but Very Un-PC British Video on Welfare and Immigration May 19, 2013 by Dan Mitchell I’ve shared this bit of political incorrect terrorism humor from England, as well asthis somewhat un-PC bit of tax humor. But perhaps motivated by the scandal of giving welfare to terrorists, this new video is […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Reagan inherited a sluggish economy like President Obama did but he cut taxes and regulations and got the […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. The sad truth is Obama is wrong about the mean rich people keeping this county down. The Grinch […]
I thought it was great when the Republican Congress and Bill Clinton put in welfare reform but now that has been done away with and no one has to work anymore it seems. In fact, over 40% of the USA is now on the government dole. What is going to happen when that figure gets over […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, […]
What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Getting votes for handing out government services!!!! That is exactly what President Obama did by almost doubling our food stamp rolls. An […]
President Obama has really cranked up the welfare state (Bush really never slowed it down either) and I think this cartoon below is really appropriate. A Real-Life Example of How Government Handouts Create Life-Sapping Dependency February 7, 2013 by Dan Mitchell Remember Julia, the mythical moocher created by the Obama campaign to show the joys of […]
I have put up lots of cartoon’s from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. Want to Know How to Define Regime Uncertainty? October 13, 2010 by Dan Mitchell My previous post looked at […]
People will move when you raise the taxes too much!!!! Final Score: Dwight Howard 8,000,000 – Jerry Brown 0 July 7, 2013 by Dan Mitchell I feel sorry for the people of California. They’re in a state that faces a very bleak future. And why does the Golden State have a not-so-golden outlook? Because interest groups have effective […]
Senator Pryor pictured below: Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. President Obama has always strongly supported the unions but these teacher unions don’t give a hoot about the […]
I have put up lots of cartoons from Dan Mitchell’s blog before and they have got lots of hits before. Many of them have dealt with the economy, eternal unemployment benefits, socialism, Greece, welfare state or on gun control. President Obama really does think that all his answers lie in raising taxes on the rich when the […]