stock here: I wish this was sarc
This is the way! From green energy, EVs and now housing, nothing moves in corporate America anymore unless its on a borrowed government dime. A Davos-WEF wet dream come true.
Housing crisis … at the bottom
1. Create problem, open border.
2 Incentivize migrants with free hotels and free housing in converted churches, meals, transportation and cash cards on a borrowed government dime.
3. Incentivize migrants transfer to “affordable” rental housing on a borrowed government dime.
4. Incentivize housing construction with expropriations of “underutilized urban core property” for conversion to “affordable high-density rental stock” public-private partnerships on a borrowed government dime.
5. Bankrupt resulting over-leveraged cities/states and privatize all public assets Detroit / Argentina style.
6. Privatize government programs and introduce corporate for-profit police state.
Detroit and Argentina: Privatization and Economic Crisis
1. Detroit: The Bankruptcy and Privatization of Assets
Background:
Detroit, once a thriving industrial city driven by the automotive industry, faced decades of economic decline, population loss, and mismanagement. By 2013, Detroit became the largest U.S. city to file for bankruptcy, owing $18 billion in debt and liabilities.
Causes of Detroit’s Crisis:
• Deindustrialization: The shift in manufacturing to other regions and countries reduced Detroit’s job base significantly, causing mass unemployment and urban decay.
• Population Decline: Detroit’s population decreased from around 1.85 million in 1950 to about 700,000 by 2013, eroding the tax base and increasing the city’s fiscal stress.
• Poor Governance: Corruption, mismanagement, and the overextension of public services, combined with massive borrowing, left Detroit vulnerable to financial collapse.
• Pension Liabilities: The city faced substantial unfunded pension and health care obligations to retired city workers, which added to its financial burdens.
Privatization in Detroit:
• Water Services: One of the major controversies in the aftermath of Detroit’s bankruptcy was the privatization and outsourcing of public services, such as the water supply.
• Land Sales: There were large-scale sales of public land to private developers, with city-owned land in blighted areas sold to investors and corporations at heavily discounted prices.
• Public-Private Partnerships: Detroit embraced public-private partnerships (PPPs) in an effort to raise revenue and bring investments into the city.
Motivations and Results in Detroit:
• Motivations: Privatization was seen as a way to rescue the city from fiscal collapse by turning failing public services and assets into potentially profitable ventures for private investors.
• Expected Results: The expectation was that privatization would attract investment, bring jobs, and restore public services.
• Actual Results: While some revitalization occurred in parts of downtown Detroit, the broader results were mixed. Inequality remained a significant issue.
2. Argentina: Economic Crisis and Privatization
Background:
Argentina faced one of its worst economic crises in 2001, following years of economic mismanagement, neoliberal policies, and mounting debt. The country defaulted on $100 billion of debt, leading to widespread poverty, social unrest, and political upheaval.
Causes of Argentina’s Crisis:
• Debt Accumulation: Argentina’s crisis was exacerbated by unsustainable borrowing, much of which was denominated in foreign currencies.
• Privatization of the 1990s: Under President Carlos Menem, Argentina pursued aggressive privatization of public utilities and services.
• Currency Peg: Argentina pegged its peso to the U.S. dollar in the 1990s, leading to economic imbalances.
Privatization in Argentina:
• Public Utilities: As part of IMF-backed austerity programs, Argentina sold off a significant portion of its public assets, including its national oil company, railways, and pension system.
• Infrastructure: Airports, highways, and postal services were privatized, leading to concerns about foreign control over key infrastructure.
Motivations and Results in Argentina:
• Motivations: The primary motivation was to reduce the public sector’s debt burden and attract foreign investment.
• Expected Results: Privatization was expected to improve efficiency, infrastructure, and economic growth.
• Actual Results: Many privatizations failed to deliver long-term benefits, leading to higher costs for consumers and job losses.
3. Similarities Between Detroit and Argentina:
• Debt Crisis Leading to Privatization: Both Detroit and Argentina faced crippling debt, and privatization was seen as a way to alleviate financial burdens.
• External Pressures: Argentina faced pressure from international institutions, while Detroit’s pressures came from creditors post-bankruptcy.
• Public Services Transferred to Private Ownership: Both cases involved essential services moving to private control, raising concerns over access and affordability.
• Inequality and Discontent: In both scenarios, privatization led to benefits for wealthier individuals or corporations, while the working class and poor faced higher costs.
4. Key Differences:
• Scale: Argentina’s privatization involved national industries, whereas Detroit’s was city-focused.
• Public Opinion and Resistance: Argentina faced widespread protests, while Detroit saw less opposition on a national scale.