Constitution Party of Wisconsin Opposes Federal Bailout of Detroit

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Constitution Party of Wisconsin says “Absolutely Not!” to federal bailout for Detroit

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By Andrew Zuelke (state party officer)

With Detroit recently declaring bankruptcy and with perhaps other municipalities to follow, some have suggested the federal government provide them with bailouts.  The Constitution Party of Wisconsin (CPoW) opposes federal bailouts of state and local governments just as we opposed the Troubled Asset Relief Program (TARP) and later the automotive industry bailout.  Here’s why we say “Absolutely not!” to federal bailouts:

·         Washington is reeling under its own massive, unsustainable debt already.

·         Federal revenue comes in large part from taxes collected from all across America.

Americans outside Detroit had no say in electing past and present mayors or city councilmen.  It is wrong to force people to take responsibility—financial or otherwise—for problems caused by others such as councilmen they had no say in electing.

Also, giving bailouts to the Detroit city councilmen whose liberal policies, political corruption and unfunded public pension liabilities caused the problem will keep them from taking responsibility or making any tough choices, meaning in a few years they’ll be back where they are right now.

This will re-establish the unconstitutional and wrong precedent set by TARP and the automotive industry “too big to fail” arguments.  Supporters of a federal bailout will say,

“This is Detroit.  You can’t let Detroit fail!” and “This isn’t the private banks or automakers this time.  This is a city…it’s public.  That’s different.  Taxpayer money is supposed to fund public services, after all.”

Giving in to these and other pro-bailout arguments will open the floodgates for bailout demands without end.

What if state governments, say California which is hanging by a financial thread, or Illinois, declares bankruptcy also?  If a city like Detroit, whose population has dwindled from 1,800,000 to 700,000, is “too big to fail” and must be saved, then California and any other state legislators will argue that we certainly should be saved.

The CPoW says it’s way past time to demand personal accountability not just from our elected local, state and federal leaders for their decisions but from those who repeatedly re-elected said officials to office instead of holding their elected “leaders” accountable after the elections were over.  The CPoW says using public monies to subsidize private businesses, or in the case of Detroit, bail out municipalities is a misuse of public monies and should not be permitted.

Article source here.

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