Detroit and the Nation

In Detroit’s bankruptcy filing, Michigan Governor Rick Snyder (R) included a letter outlining his reasons for his approval of the filing.  Here are some of them [emphasis added].

  • The City’s unemployment rate has nearly tripled since 2000 and is more than double the national average.
  • Its citizens wait an average of 58 minutes for the police to respond to their calls, compared to a national average of 11 minutes.
  • The City’s police cars, fire trucks, and ambulances are so old that breakdowns make it impossible to keep up the fleet or properly carry out their roles.
  • The City has more than $18 billion in accrued obligations.
  • Detroit tax rates are at their current legal limits, and that even if the City was legally able to raise taxes, its residents cannot afford to pay additional taxes. Detroit simply cannot raise enough revenue to meet its current obligations….
  • The City’s population has declined 63% from its peak, including a 28% decline since 2000.
  • A decreasing tax base has made meeting obligations to creditors impossible.

Horribly high expenditures against a tax system that’s already very expensive for the citizens has driven Detroit into the ground and forced restructuring through bankruptcy.

What are the implications for the nation as a whole?

On the one hand, bankruptcy—legal bankruptcy—is not an option for the US.  Nations have no bankruptcy system available to them; all a bankrupt nation can do is to repudiate its debts or debase its currency, repaying with devalued (dollars)—to repudiate its debts through subterfuge.

Here lies the United States: we have horribly high expenditures (see Obamacare, Medicare, Medicaid transfer payments, Social Security, Federal public service union pensions, Stimulus spending, etc) against a tax system that is hammering the paying population into the ground while, by design, excluding half the tax base from tax obligations.   This combines to create on the national level massive annual deficits, exploding national debt, and increasing costs to borrow (presently low, Bernanke’s artificially suppressed interest rates will not be able to stop the market’s assessments of our national creditworthiness).

Detroit is the future of the United States under our current policies.  In that light, notice the loss of population as Detroiters fled the disaster—28% of its people just since 2000.  As our national disaster unfolds—unless we move to terminate our Federal government’s destructive policies and put aside our own disdain for work and responsibility—where will Americans go?

Some Thoughts on President Obama’s Remarks on the Zimmerman/Martin Case

I’ll leave aside President Barack Obama’s segue into his hobby horses of gun violence, the role of government in self defense (which is, of necessity, first and foremost a personal matter), and how government should manage how we think about things.  I’ll just comment on his remarks about race and the Zimmerman acquittal.

The following excerpts what I believe to be the relevant parts of his speech [emphasis added] (the full transcript of which can be found here, via The Washington Post).

Another way of saying that is Trayvon Martin could have been me 35 years ago.  And when you think about why, in the African-American community at least, there’s a lot of pain around what happened here, I think it’s important to recognize that the African-American community is looking at this issue through a set of experiences and a history that—that doesn’t go away.

There are very few African-American men in this country who haven’t had the experience of being followed when they were shopping in a department store.  That includes me.

And there are very few African-American men who haven’t had the experience of walking across the street and hearing the locks click on the doors of cars.  That happens to me, at least before I was a senator.  There are very few African-Americans who haven’t had the experience of getting on an elevator and a woman clutching her purse nervously and holding her breath until she had a chance to get off.  That happens often.

And you know, I don’t want to exaggerate this, but those sets of experiences inform how the African-American community interprets what happened one night in Florida.  And it’s inescapable for people to bring those experiences to bear.
…
And so the fact that sometimes that’s unacknowledged adds to the frustration.
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We need to spend some time in thinking about how do we bolster and reinforce our African-American boys?
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…figure out how are we doing a better job helping young African-American men feel that they’re a full part of this society[.]

Is this following, door locking, elevator nervousness, etc occurring at the same rate today that it was 35 years ago, with no improvement?  Locks, mechanically, are a whole lot quieter today than they were 35 years ago, and many (most?) cars today lock their doors as soon as they’re put into gear or start moving the first time; I have to wonder whether lock-clicking even is audible on today’s streets.  Regardless, is this behavior really occurring today unabated?  I’ve not seen any of this in the (very thoroughly integrated) stores, or elevators, or streets—or restaurants or any other public spaces—I frequent; although I certainly did see much of this 35 years ago.  But then, I’m just a pasty white guy….

Obama speaks of the inescapability of a history of 35 years and more ago.  He talks of the inescapability of a history of nearly two generations—and more—ago, as though today’s children still are trapped in the past of their grandfathers.  Yet, what’s also, if not more so, inescapable is that men also can bring to bear the fact of great improvement in relations over these 35 years.  It’s also inescapable that blacks can—and do—recognize that not every ruling—legal, economic, or otherwise—that goes against a black man or in favor of a white or Hispanic man must, perforce, have been a racial ruling and not an honest one.  For Obama to suggest otherwise is to demean the intelligence and maturity of the “black community.”  Indeed, adding to frustration levels on this matter is his, and his liberal confreres’, insistence on wallowing in that history (which roughly coincides with the last time Obama actually was in the world before entering the cloisters of legal academe and politics) as though it were the present, rather than moving forward.

No, the history of blacks and of black treatment is not the present.  Certainly there remains racism—but today is radically different from the general history of 35 years ago that Obama insinuates remains the present.  Yes, he did pay lip service to change with his stock phrases concerning progress made; he offered them as an afterthought at the end of his remarks.

Regardless of any of the foregoing, though, is the appropriate response to following, to door-locking, to nervous purse-clutching to attack the one behaving inappropriately, to “ground and pound” that one?  Is Obama suggesting that 35 years ago—or today—he could have been the one assaulting a man whose behavior offended him?

Then Obama asked that we think about how to bolster and reinforce African-American boys.  How about, instead, thinking about how to bolster and reinforce American boys?  And American girls?  (This, though, is not done by government involvement with our children, rather by government working to protect the economic and moral environment so as to let local communities bolster and reinforce families.)

Along these lines, on the subject of his last question quoted above: one way—the best way—to help “African-American men” feel they’re a full part of “this society” would be to stop holding them separate from society and to stop singling them out for special treatment (vis., “African-American men” instead of American men (who happen to be black), or making exceptions for them because of a history that is increasingly less related to the present, or affirmative action programs).  Let them actually be a full part of society.

Finally, what does our President see when he looks out over the audience at any of his speeches?  A sea of Americans, who happen to have a variety of ethnic heritages?  Or a collection of distinct ethnic identities who happen to have American citizenship?

Greed and Bankruptcy

Detroit filed for Chapter 9 bankruptcy last week when

…Emergency Manager Kevyn Orr’s attempt to reach out-of-court settlements could not overcome opposition from unions, retirees and a long list of lenders….”

Orr’s spokesman Bill Nowling had much of it right:

Pension boards, insurers, it’s clear that if you’re suing us, your response is “no.”  We still have other creditors we continue to have meetings with, other stakeholders….

But that’s only part of it.  The pensions and unions are owed the largest amount out of Detroit’s total $18 billion debt, but they’re not the only ones who were intransigent.  Bank of America and UBS AG agreed to a restructuring of the debt Detroit owed them (chump change alterations on less than $500 million of that debt), but they were nearly the only ones actually willing to deal.  Nearly all the remaining creditors each insisted, regardless of the city’s ability to pay, on holding out for their full cut, or as much of it as they could squeeze, and to hell with the rest of the creditors.

What Was He Thinking?

Attorney General Eric Holder said this at the annual NAACP convention on Tuesday:

There has always been a legal defense for using deadly force if—and the “if” is important—no safe retreat is available.   But we must examine laws that take this further by eliminating the common sense and age-old requirement that people who feel threatened have a duty to retreat.

Say what!?  What age-old requirement?  Whence this?  Has he never read John Locke?  Does he think Locke wrong?  If so, based on what?

Has he never read US law?  Does he think US law is wrong?  Oh, wait….

What logic of his underlies this outlandish claim?

If we retreat when we have the means to resist, all we do is reward the criminal for his crime.  Our right to our lives and our property create in us no obligation at all to retreat, or to cede them to another solely on the basis that another wants them more than do we.

On the other hand, if “we” have a duty to retreat when threatened, surely “we” includes that threatener: he has a duty to retreat if we threaten him.

Progressive One-Party Rule

The Democrats have had it with two-party governance, and they’re moving in the Senate to eliminate the Republicans.

Senate Majority Leader Harry Reid (D, NV)…appears ready to set off an earthquake in the Senate Tuesday by trying to change the body’s rules for confirming presidential nominees, offers a simple explanation of his move: “The status quo does not work right now.”

Of course it doesn’t.  The minority party won’t roll over and give him what he wants fast enough to suit him, so he’s going to seize power’

Reid[] plan[s] to accomplish this Senate change…with a simple majority vote, and not require the super-majority some think should be used to affect a significant Senate rules change.

Not just “some:” Senate rules V and XXII combine to require a 2/3 majority vote to change the rules.  Reid expects to accomplish the rule change on a simple majority of 51 votes by having Joe Biden, wearing his President of the Senate hat, respond to the inevitable challenge to the rule change by ruling—as the VP as President of the Senate has the authority to do—the simple majority vote on the rule change to be in order. Of course Biden’s—the chair’s—ruling can be challenged, but it takes only a majority vote to uphold or deny the chair’s ruling, thus the Progressive power grab will be successful.

Of course, this is only the first move: every other place for filibusters will be overridden in the same manner, as soon as it suits Reid’s, or any other Progressive’s, fancy.

…Reid…on Monday said unless Republicans allow votes on seven of President Obama’s pending nominees, he will trigger the “nuclear option” this week.

In other words, Republicans must voluntarily surrender their power to debate, or Reid will take it from them.

Update (as I write this on Tuesday afternoon): The Republicans have abjectly surrendered.

Republican senators said Tuesday they would drop their blockade of Richard Cordray to be the new head of a consumer protection bureau….

Soon after, the Senate voted 71-29 to head off a filibuster of Mr. Cordray, with 17 Republicans joining Democrats to advance the nomination.”

The RINO John McCain (R, AZ) spearheaded the surrender.