People who live in times of the collapse of an old order and the rise of a new, sometimes can see it clearly and sometimes they can’t. I am convinced that we are on the cusp of a period of rapid change in our country, largely driven by the fiscal debacle. If most of the media were not bitter partisans of the old order, I think more people would see it. Ed Driscoll nails it in a conclusion to a brilliant column:
Between Detroit’s bankruptcy, the multiple bankruptcies in California, the acquisitions of Newsweek, the Boston Globe and most famously the Washington Post at fire sale prices, the media inventing racism-driven stories out of whole cloth, leftwing sexual predators and misogynists either running for office or already in office in major cities on both coasts, and a gaffe–prone president trying desperately to implement his agenda piecemeal through executive orders, we may very well be witnessing the wholesale collapse of the large portions of the century-old “Progressive” model. But because old media has so much invested in that model, they’re far too close to see anything approaching the big picture, and would be far too scared to admit what they’re seeing to their readers, even if they could. Too bad, as Matt Welch wrote last year at Reason, that history is written by the losers. Continue Reading
I view Detroit and its bankruptcy as a harbinger of things to come. The blue state social model of ever higher taxes, ever expanding benefits for members of public employee unions and one party rule by the Democrat party is coming to an end. The ending will be painful for people luckless enough to live in blue states, as I do, but this parasitical form of government ultimately destroys the private economy host it feeds on. Walter Mead at Via Meadia has been prescient in seeing this:
It looks like Detroit may yet have competition for the distinction of America’s most poorly run city. The unprecedented triple-drop in Chicago’s bond rating and the city’s shiny new long-term debt figure—$29 billion—should have pols quaking in their boots. The Chicago Sun-Times has published some distressing numbers from Chicago’s recent audits:
In addition to the pension, law enforcement, and emergency response concerns that remind us of a certain bankrupt city across the lake, the report notes that three of Chicago’s four largest private employers (JP Morgan, Accenture LLP, and Northern Trust) are in finance. It seems like blue cities have a codependent relationship with the one percenters progressives claim to hate.
It hasn’t all hit the fan quite yet, but Chicago seems perilously close to real trouble. The city is all out of money, and with an imploding public education system and harrowing levels of violence, it is losing residents fast. Illinois, which itself lost more than 800,000 people to out-migration in the past two decades, is essentially Chicago on a larger scale, with hundreds of billions in unfunded pension liabilities and complete political sclerosis. The state cannot bail out Chicago, and judging by the feds’ reluctance to even lift a finger for Detroit, Chicago shouldn’t expect much more. Continue Reading
This can be considered a companion piece to my worst governor post which may be read here. The video above consists of selections from a speech by author Joel Kotkin to the Illinois Policy Institute explaining some of the ways in which the powers that be in Illinois have made the state completely uncompetitive with other states in producing sustained private sector economic growth. If I were starting out I would leave Illinois. Nothing good is going to be happening in this state economically for a very long time. The leadership of the state is completely blind to our problems and promote policies that drive businesses away and sink Illinois deeper in a fiscal morass. Illinois’ woes are completely man-made, and Illinois, thanks to a majority of the Illinois voters, remains wedded to a model of high government expenditure, hostility to private enterprise and unending political corruption that makes effective reform for at least the next three years a pipe dream.