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Tag: Untouchable Benefits

Detroit Bankruptcy Could Have Been Avoided

By JGillman, Section News
Posted on Wed Jul 31, 2013 at 08:30:38 PM EST
Tags: Michigan, Detroit, Bankruptcy, Coleman Young, Dennis Archer, Unions, Pensions, Untouchable Benefits, Politics (all tags)

There is a reason this mess happened.

Outside of the progressive politics, corruption related to same, and a lack of respect for what USED to be the jewel of the Midwest, it was greed. Greed, that is explained no better than by Bill Johnson:

"History, however, shows this looming crisis might have been averted if the employees unions and pensioners had shown more flexibility forty years ago in restructuring city pension benefits. Instead, the intractable opposition demanded the city stay on a dead end course to default.
As far back as 1974, then-Mayor Coleman Young proposed what was considered reasonable changes to Detroit's pension programs. Because labor and retirees are a potent political force, the City Council shot down the mayor's changes."

Was that the last opportunity to correct course?

Not so much.

Read the rest at Johnson's blog.

Perspective and not-so-much selective memories can take the argument so much farther, mmm?

(4 comments) Comments >>