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Turning -- the latest developments with the largest municipal bankruptcy in the country Republican senators today introducing an amendment aimed at preventing.
A federal bailout of Detroit one of the sponsors.
Is senator Ron Johnson he wants to make certain Detroit doesn't -- a single dime of taxpayer money he issued this statement.
Detroit's dad is a national poster child of what can result.
When politicians enter into an on holy alliance with powerful unions at the expense of a local economy and the people who live there.
Well my next guest has called on congress and the federal government -- consider supporting cities to prevent future bankruptcies joining us now is congressman Dan.
-- of Michigan -- member of the house financial services committee congressman good to have you with us.
First I would like to get and understanding as to your reaction.
To senator Johnson's remarks.
Obviously -- -- strong part of the Republican party's view.
Well first of all I think the conversation is a little more complicated than the way it was described by senator Johnson this is a situation where we have the city.
It has experienced over the period of not just the last decade but over a period of about thirty or forty years of continuous.
Decline population loss.
The loss of its economic base frankly fueled by I think bad policies like NAFTA and other trade agreements that have allowed.
American jobs to be shipped overseas lots of bad decisions at the local level so for sure we have to start with the acknowledgment that local government failed the people of Detroit.
No question about it they made decisions that were unsustainable.
I -- we have outside announce a decision for a bailout.
Because I said the route that local politicians are just those much to blame as any other element -- force that -- -- local politicians are the people who live in Detroit are -- And I think what we have to do it state level at the federal level and certainly at the local level realize that the people with 700000 people of Detroit.
Our citizens of Detroit but they're also citizens of Michigan and citizens of this country -- so at every level.
We need to think about how -- position Detroit.
To be prosperous again and create a platform for -- re emergence so what are the things I did for example.
Is to work.
To rethink the way the US Treasury Department employees.
A fund called the hardest hit funds it was intended to help.
Communities deal with the aftermath of the foreclosure crisis by helping people with mortgage.
Write downs and such.
In Detroit and other places places in Michigan that money a hundred million oval will be used to demolish abandoned structures we got a clean up the -- -- -- witnesses that the federal express attorney general.
What we are limited on time and -- I just got to ask you this this is the responsibility.
Of the of the unions who -- negotiated.
Pension deals with local politicians and you know what that trade was all about it was political power for taxpayer money.
It hasn't worked.
There is no way in the world that you're gonna bring back what is it it's a million and a half people of laughter no I agree absolutely right and there is no.
No way in the world you can recover the by.
Bulldozing houses -- you and I both know that.
You can -- -- -- vacant land.
But that will not attract more people who would make up a tax base for a city that is if it's -- is perhaps mortal wounded.
-- but what you can do.
-- is is have a plan that reconfigured the city to be a more successful.
In smaller place them and to do that.
You have to demolish those abandoned -- me ask -- this.
Presumably all the people that you think are Smart enough to figure out how to do this have been living in Detroit.
And Washington and around this country for some time.
How and why should we be any more confident about the geniuses in government.
Providing a prescription.
For what is -- city that is fallen on hard times for the past five decades thriller.
And -- and industry base that is basically.
Not basically it is fundamentally.
Saved by the federal government money that taxpayer money.
This is a peculiar thing to do don't you think.
-- I don't think it's peculiar to think that bad policy could be replaced with good policy that's more thoughtful.
And focus on a more sustainable approach and just because there have been mistakes of the past the market -- I know you notice that doesn't mean government.
Is consigned to always make mistakes going forward we can have better smarter decisions and that's what I'm calling for.
Well a noble and idealistic outlook and we salute you for congressman I look forward to talking again about it -- together -- open.
Then -- the congressman from my the great state of Michigan up next.
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