Detroit’s bankruptcy and decay are symptoms of a fully-functioning free market, not a new “post-capi

[ellenrr]

Detroit’s bankruptcy and decay are symptoms of a fully-functioning free market, not a new “post-capitalist” order.

Such a massive transfer of wealth from the poor to the rich is no “bargain” for anyone, except perhaps for the banks. But proponents of the bankruptcy, such as former mayor Dave Bing, have presented the bankruptcy as an inevitable step toward Detroit’s recovery and prosperity. For a “post-industrial” city trapped by poverty, abandonment, and a lack of financial discipline, the city’s political and business elites say, there is no alternative.

But the public workers and pensioners who are being forced to pay for this recovery did not cause this crisis, despite accusations that the city government has gone on a forty-year spending spree. The usual suspects from Wall Street drove the city into crisis through complex financial deals that virtually guaranteed them an astronomical return at the expense of the city and its workers.

https://www.jacobinmag.com/2014/06/detroit-s-grand-bargain/

[TBF]

1. Good article -

Last edited Thu Jul 10, 2014, 11:42 AM - Edit history (1)

In Detroit we are seeing uber-austerity in motion. It is frustrating. I understand from capitalists talking points the desire to raise the boats everywhere. That is what we hear when we fight against global capital - that the jobs being shipped overseas are raising standards of living in those places. And that would be fine except that the people in post-industrial cities who lose their jobs seem to be left out of the "raising the boats" model. Instead they are living in squalor (some don't even have running water anymore). If we are truly going to be a global world we need to be transitioning to socialism because we cannot leave human beings to die in cities that seem to be no longer needed. Instead of glorifying capitalism and war, we need to redistribute wealth and make sure we are paying a minimum wage to all (guaranteed income) and providing shelter at the very least. At that point it would be fair to re-train folks with new skills, teach them how to make communal gardens etc and do whatever necessary to prepare for a new world. But the way we're doing it now is not going to work. At least not for most of us.

[L0oniX]

2. Can you smell the free market capitalism?

[Overseas]

3. K&R. Well said.