Krauthammer's Take: Detroit Exemplifies 'the Absence of Austerity'
Charles Krauthammer gently chided fellow panelist Sally Kohn for predicting that “a number of folks are going to try to use Detroit falsely as an example to push more austerity, to really cram more austerity, down the throats of the United States.”
Krauthammer replied, “Sally, Detroit is not really an example of the failure of GOP economic policies. It’s been run by the Democrats for 60 years. And you can cite all the studies you want about how bad austerity is; all you have to do is look at Detroit and you get an idea of how bad the absence of austerity is: It’s a city in ruin.”
He went on to predict that President Obama will decline to offer the beleaguered Motor City a federal bailout:
I think the reason that the administration is hesitant to even talk about a bailout is, it understands that Detroit is a precedent. The minute you step into a bailout in Detroit, you’re going to get every city in the country lining up with a tin cup; and that’s why I think even this administration — even this administration — is going to hold back from doing this.