Academic Paul Krugman is trying to figure out where to lay the blame about Detroit’s bankruptcy. Furthermore Krugman is pointing his finger at the sheer size of metropolitan areas for causing the high unemployment in cities. He cites progressive research that claims that good jobs are literally out of reach for inner city workers because they lack the ability to travel outside their neighborhoods. In other words he blames the companies and residences that left cities like Detroit instead of looking at the progressive policies that caused them to leave in the first place. Detroit used to have plenty of jobs until the unions took over, both public and private, and the taxes went up. It only made sense for business to leave after which the residents soon followed. So instead of making changes to attract more businesses back Krugman is offering a more predictable solution of more public transportation and solutions for families to function with fewer cars, especially in Detroit. The one thing Krugman left out of his solution is who’s going to pay to bring better paying jobs to the inner city worker. The City of Detroit cannot even keep their street lights on so there is no money. Ultimately he thinks that the same people who realized the situation and moved out are the same people that should flip the bill. It’s a known fact that people do not like to pay higher taxes when it does not benefit them. Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, joins The Blaze TV with Wilkow to discuss if the reaction by the bond market will impact creditors and the like dealing with Detroit’s bankruptcy.
Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
Tags: bankruptcy, bond market, Detroit, ed butowsky, good jobs, paul krugman, the blaze, unemployment