Stockton, California can now breath a small sigh of relief. It’s no longer the largest American city to declare bankruptcy. Detroit has filed for Chapter 9 bankruptcy.
Bonus: The city has more than 100,000 creditors.
This is the endpoint of the cradle-to-grave welfare state. Certainly Detroit got there faster than most will, thanks to endemic corruption, horrific mismanagement, and an overwhelmingly unionized (and thus expensive and inflexible) manufacturing base workforce. But the problem of overspending, bloated government, overregulation, declining population and cronyism are endemic to blue states and members of the European Union. Greece’s future is Detroit (with possibly fewer race riots), California’s future is Greece, and deficit spending continues, eventually the United States’ future is that of California.