Some news from before Thanksgiving weekend, some after. Do not taunt Happy Fun Ball.
Posts Tagged ‘Detroit’
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.
And now the traditional Friday LinkSwarm on Friday!
Time for another Texas vs. California roundup!
For a shocking change of pace, the Friday LinkSwarm will be on Friday:
This week we’ll do it Thursday rather than Friday:
The degrees of broke-ness varies: from completely and utterly broke, like Greece or Italy; to wobbly, like the U.K., France, the U.S., or Japan; to getting poorer like Germany. But all of them are going to have to raise the percentage of gross domestic product they collect in tax — and many of them very significantly.
The U.S. deficit is more than 7% of GDP. The U.K.’s deficit is just as high. There is very little sign that spending cuts to close gaps of that magnitude are on the cards, nor is there any sign that growth will be sufficiently strong to make up the difference — certainly not in countries like the U.K. or Japan.
Huge sums of additional revenue will have to be raised.
Willie Sutton once famously remarked that he robbed banks because “that’s where the money is.”
In the same way, governments will look to raise more tax from companies because that’s where the money is.
Or they could, you know, actually cut spending…