Pseudo economics driving municipal bankruptcies across the U.S.
The opening lines in the chyron running with the black and white still photos did not bode well for Kathryn Bigelow’s new film Detroit. The overly simplistic, politically hyped, narrative ran, in effect, like this: During the Great Migration, African Americans moved north to jobs, whites moved out to better jobs in the suburbs,...
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(continued from Part II) After the Watts riot of 1965, bureaucrats in the administrative state (e.g., EEOC, Small Business Administration) created racial preferences in employment and lending programs based on their own administrative authority, not any explicit authorization from the Congress. Indeed, the Democratic majority (and the Republican minority) were adamantly opposed to racial discrimination...
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Throughout American history, government at all levels has used race to categorize, enslave, segregate, regulate human behavior, and limit immigration with “nationality” quotas that served as substitutes for race. Categorizing by race was essential to racist agendas.
In response, classical liberal civil rights activists struggled to eliminate government-mandated racial categories. They were anything but naive: racism was real, categories or no categories, but the government stamp of approval made things worse–and caused constant mischief in the ever increasing addition of group categories in the census or in immigration statutes. The only feasible solution was the most radical one: the complete elimination of government racial categories. Individuals might discriminate but would no longer have the support of the State. With time, classical liberals felt, the irrationality of racism and xenophobia would give way to better human relations.
Tags: affirmative action, Black capitalism, civil rights, classical liberty, colorblindness, Constitution, Criminal Justice, Detroit, Detroit riot (1967), Frederick Douglass, James Forten, Louis Marshall, Loving, Martin Luther King Jr., NAACP, Police, Politics, politics of crisis, Richard Nixon, riots, Rule of Law
Fifty years ago today (July 23, 1967), the largest urban riot of the 1960s rocked Detroit for five days (July 23-28). An encounter with the police (shutting down an illegal after-hours bar), sparked looting and arson on a scale far surpassing the riots that had burned in other American cities. While such riots often started with incidents involving law enforcement, the police were ordered—again and again—to stand down and let a small minority of African Americans loot property of small business owners (both black and white).
The Detroit Riot marked a turning point in how American policymakers dealt with race. The classical liberal tradition of civil rights, with its emphasis on rule of law and equal protection (regardless of race) gave way to policies that purposely treated minorities as “protected categories” deserving of treatment not accorded other citizens.
Tags: affirmative action, American History, Black capitalism, civil rights, Constitution, Criminal Justice, Detroit, Detroit riot (1967), Martin Luther King Jr., Police, Politics, politics of crisis, Richard Nixon, riots, Rule of Law
Four U.S. cities went belly up recently, and all declared bankruptcy largely due to unaffordable government pension costs. The outcomes of these bankruptcies should make everyone think twice about lending money to cities with serious public pension debts. The graphic below shows the outcome of the municipal bankruptcies in Vallejo, Detroit, Stockton, and San...
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Tags: bonds, Chicago, Chicago Public School Teachers' Pension and Retirement Fund, Chicago Public Schools, default, Detroit, Franklin Templeton, Government bonds, government pensions, Illinois, Moody's, municipal bankruptcies, pension obligation bonds, property taxes, public pensions, Rahm Emanuel, San Bernardino, Stockton, unfunded liabilities, unfunded liability, unfunded pension liabilities, Vallejo
In a new article in the London Guardian, “$2 Trillion Debt Crisis Threatens to Bring Down 100 U.S. Cities,” Elena Moya reports that “Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the U.S. economic recovery. Nor are European cities safe—Florence, Barcelona, Madrid,...
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Tags: 60 Minutes, Bailouts, Barcelona, Budapest, Budget and Tax Policy, California, Chris Christie, Civil Society, Corruption, default, Detroit, Economics, Europe, Florence, government bankruptcy, Guardian, Istanbul, Lisbon, Madrid, Money and Banking, Moody's, Naples, Nationalization, New York, Police, Power, Privatization, Property Rights, Socialism, Tabarrok, Taxation, Taxes, The State, urban crisis, Urban Issues, Venice, Welfare
See Obama go to Detroit. See Obama put the cost of bailing out GM/Chrysler at $60 billion (underestimate) See Obama claim the “auto industry” created 55,000 jobs after losing 335,000. Poor Obama. He does not see (say) *Ford grew the most and received no bailout (some of those 55,000 jobs are Ford’s). *$1.1 million...
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