The news that the city of Detroit is declaring bankruptcy may not surprise many observers who were aware of how economic decline, shrinking population, the burden of huge public employee contracts and political corruption was leading inevitably to this outcome. But it might come as something of a shock to the vast majority of Americans whose only thoughts about the subject prior to today were framed by the demagoguery on the issue that came from President Obama’s reelection campaign. As we all recall, Democrats spent a good deal of 2012 telling us that “General Motors is alive and Osama bin Laden is dead” and hounding Mitt Romney for saying that Detroit would be better off going bankrupt rather than being bailed out by the federal government. But yesterday we learned that all the sunny talk about what Obama had accomplished did nothing to save the city.
Of course, Democrats will say that when they were talking about “Detroit” last year, they were just using the word as shorthand for the automobile industry and not referring to the Motor City itself. But the memory of the way the president pounded Romney on the issue should do more than point out Obama’s hypocrisy. The collapse of what was once one of America’s great cities should also inform us about the way the liberal project is dooming municipal and state governments around the country as well as Washington to a sea of debt that cannot be sustained. Detroit isn’t just the most spectacular example of urban blight. It’s the poster child for the consequences of liberal governance.