Tag: Boondoggles

We seldom use such direct attacks in a title even though the content has tended to be more direct as of late.  And though we openly wonder on why certain pursuits exist, the Detroit bankruptcy really drives home a point that cannot be ignored.  The bankruptcy had to happen, and even though happening later than it should have been, Snyder gets some credit for doing what is needed.

For the remainder of the message however, Stephanie quotes Forbes and opines:

"In light of Detroit's bankruptcy case getting national attention, many people have missed this little development:

Detroit's Tunnel To Canada Follows The City Into Bankruptcy.  

Since 1930, Detroiters have had two choices to reach Windsor, Ontario across the U.S.-Canadian border: the Ambassador Bridge or the Detroit-Windsor Tunnel.

Now, the tunnel's operator has joined the city in seeking bankruptcy protection. It's blaming two reasons, according to Reuters: reduced traffic across the border, and the same kind of unmanageable debt burden that led to the city's Chapter 9 petition.

If Michigander's might recall, Governor Rick Snyder, as part of his campaign platform, ran advocating for a second bridge to Canada to be built, using at least partly, taxpayer money.  One has to ask, in considering this little plan of his, did he not research the profitability of the two existing means by which to get to Canada (the Windsor Tunnel and the Ambassador Bridge)?  If he didn't do the research that makes Governor Snyder just stupid.  If he did do his due diligence, he would have seen the enormous operating losses of the Tunnel."

Unloading a rail line between Chicago and Detroit onto the taxpayers of Michigan, the freight concern just eliminated the high cost of maintenance, liability, and dispatching responsibility, and as a bonus probably got paid for it. According to PFA:

"Thanks to $140 million in federal money, the State of Michigan will reportedly soon be the owner of the Norfolk Southern Railroad line connecting Chicago to Detroit. This is all part of the State's plan to have high speed rail connecting the two cities."

Norfolk keeps the rights to freight travel, which is ALWAYS the most lucrative part of a rail operation, and gets US to pay the weight of the rest. AND the lose all the negatives.

Sweet.

When he said:

"....that's freedom, and I'll take it any day over the supervision and sanctimony of the central planners"

He touched on a point that is relevant no matter whom the leadership might be.  The interference and 'concern' over the affairs of our lives is too often conflicting with the independence we claim as our birthright.  Some folks forget that we have to be able to fail. That risk and reward is a part of the American dream.  That sometimes, our decisions make us healthy, and sometimes not.

Its NOT government's place to provide a boost for a business.  Its NOT government's place to control the healthcare choices through exchanges or limitations on where one buys insurance or the care itself.  Its NOT the government's place to provide housing. Nor is it government's place to control the terms of employment, and compensation that business provides.

Ryan is correct.  

Republicans in Michigan and elsewhere ought to take note of the future VP's comments and internalize them.  

Quick drop on the background affairs of government pushing more government, using private firms to make it look like "capitalism", and there it was.

While planning to step in and crush the bankrupting union contracts in Detroit with the EFM, the next generation of great failure is having its rails installed.  A Private firm M1 is proposing to build a transit system, a 3.4-mile line between Hart Plaza and New Center on Woodward Avenue for $125 million in private investment and federal grant money.  At some point in the future, it will turn over (sell) the line to the city, and will subsequently siphon from taxpayers additional funds to remain in operation.

OK, we've seen THAT movie before.

Snyder is painted as being cautious on this however.  An interesting take from Crains Business:

A fear is that if the regional proposal collapses -- as so many similar plans have over the past 40 years -- blame will be laid at the governor's feet, the sources said.

That worry is acute because this is a presidential election year, and Snyder's staff is feeling pressure to expedite the regional authority so that President Barack Obama can announce funding before the election, the sources said.