Also in this playlist...
This transcript is automatically generated
Well right before the election last November the president promised he would not let Detroit go bankrupt and weeks later.
Detroit city councilwoman Joann Watson made some headlines when she suggested the president.
-- paid to Troy eaters for their votes.
By offering a federal bailout take a listen.
-- -- -- -- -- One -- -- Coleman out of Betty yeah.
He Lipton plus everything he -- back home with the -- That's what you do that's what he did.
Visit that -- people.
It overwhelmingly supportive they realize it is -- -- -- curiosity.
Ugly quote quote a -- to exercise some leadership on that.
Full votes don't come for free you know.
Chris firewall Fox News digital politics editor a host of power play on foxnews.com.
Chris good to see you know what he ran for reelection in bragging that he saved the auto industry -- -- president didn't foul.
I will not let Detroit go bankrupt but you know he did did -- and any rejected a last minute plea to bail amount.
Is that because he just -- -- absolutely horrible economic sense or was it just kind of bad optics.
Well I'd I think probably both you know the Mitt Mitt Romney the Republican nominee was taken to task again and again and again by the president.
The vice president their campaign for having said of -- when he said Detroit he was segment the Big Three auto makers.
Let him go bankrupt let him restructure let him come out on the other side with that business model that works to shed some of these old liabilities that are on affordable.
The president seems to be taking the same approach with the city of Detroit with Detroit proper.
Doing what Mitt Romney -- to be done with the auto makers which is let them burn it now.
Let them get through all of the pain and anguish of the bankruptcy.
And then on the other side you can start to do some thing.
That is constructive and forward looking.
And in -- I'm sure mr.
Romney must be noting with some -- satisfaction today that it was a president who let Detroit.
Go bankrupt you know and one wonders whether the president would make a different decision if he were up for reelection but of course now he isn't that look I'm.
This is a prime example is it not of just profligate promises that were utterly absurd is that because.
The leaders in Detroit thought.
The good times will roll again and then -- around -- will pay it all back war.
Which was probably incredibly foolish or did they think you know what it's going to be somebody else's problem not mine somewhere down the line.
Well they brought probably a little -- -- you know we've seen and we see it in states like Illinois.
We -- in California -- -- -- in other places.
Labor unions government worker unions and Democrats and their alliance can perpetuate.
And that was certainly the case in Detroit where government worker unions patronize Democrats.
Who in turn made things better afford government worker unions those lavish pensions etc.
and then the unions were better position to in -- trying to Democrats and a unilateral hold on politics it happens in a lot of places.
But the problem is that eventually the cycle breaks and becomes unsustainable.
The president doesn't necessarily want to be associated.
With what is now the most infamous failure of that of that symbiotic relationship between -- -- -- government worker unions now.
You know Bob Detroit is just you know the death star of major cities.
-- about violent crime is is rampant.
And I you know police response time is an hour half the street lights don't work.
You write about it today in your power play and I want to quote that.
Much of Detroit is simply falling apart -- being -- claim by the natural world the motor city becoming that domain of raccoon using coyotes.
Not an evil international -- corporation is there a lesson here for organize labor Chris.
The lesson for organized labor is this -- Democrats in the -- the person President Obama in this -- who make big promises in 2008 about.
Staying within -- 2012 about I'm not gonna let Detroit go bankrupt staying with them staying in the fight.
When it becomes politically inconvenient for Democrats helped labor unions and we see this.
As it relates the president's health law as labor union leaders complain that it's going to swing a wrecking ball into their programs and their membership.
That when it becomes politically inconvenient to new democratic coalition doesn't have as much room for the traditional bull work that unions provide.
I also wanna pluck out of your column today something in Christine Thea Lee who is the economist in in -- deputy chief of staff the AFL CIO.
You point out her her recent comments describing the president's economic policies.
She called this -- pathetic.
Recovery not within spitting distance of full employment boy those are pretty sharp words.
-- union leaders.
Well there are facing very tough times I mean Detroit is I guess it's an analogy.
It is the Greece within our European Union.
As -- claim that Washington Post as previously pointed out.
But you know here's the thing.
For the labor unions they're facing the same sort of death spiral that the city of Detroit has -- where the model becomes unsustainable.
And if Democrats don't deliver on their promise to spend that money domestically.
On programs projects whether it's infrastructure or training that they think are gonna turn things around and create more union jobs.
Private sector unions at least are heading to a vanishing point.
Now well it's a lesson for not just unions but all American cities don't over promise and over spend -- -- -- Many thanks Chris you -- Bankruptcies like Detroit's are rare but they are increasing 53 cities towns counties villages have filed for chapter nine bankruptcy since 1982.
-- -- percent of those filings have taken place since 2008.
-- Stockton California held the distinction of the largest US city to file for bankruptcy before Detroit Stockton filed in June.
Collapsing under 700 million dollars.
Filter by section