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Shikha Dalmia on Detroit's Sweet Bankruptcy Deal for Retirees

LibraryOfCongress.Foter


If there is an organizing principle in Detroit's bankruptcy settlement last week, it is that those at the forefront of fleecing the city will get the sweetest deal and the innocent victims will get the shaft.

There is no other way to interpret the recent efforts by both the Democratic White House and the Republican Gov. Rick Snyder to look for ever-more creative ways to handover taxpayer money to city retirees. Left out of the equation are residents who have paid for such profligacy by having to live in an unlivable city.

Looking back, the entire bankruptcy exercise will seem like a giant missed opportunity to put Detroit on a path of fiscal sanity — and recovery.

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