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Rand Paul offers plan to save Detroit: cut taxes, regulations, union rules

Kentucky Sen. Rand Paul this week is traveling to Detroit, the nation’s economic disaster zone, to lay out a sweeping proposal to revive Motor City while also extending his recent outreach to blacks by opening a GOP African American engagement office.

Paul, a 2016 GOP presidential front-runner, will be in Detroit Friday to address the Detroit Economic Club where he will unveil a plan to create economic “freedom zones,” a unique agenda that features help to poor families and struggling businesses.

In what could be a cornerstone of Paul’s economic agenda for troubled cities and regions, he will detail his “Detroit economic plan” to revitalize the city’s economy with growth-encouraging tax and regulations changes.

His trip makes him the first to offer a blueprint to restore Detroit's lost luster and comes during a week in which a federal bankruptcy judge gave the city unprecedented powers to take virtually any move to pull out of an economic tailspin.

http://washingtonexaminer.com/rand-paul-offers-plan-to-save-...



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Awesome speech, thanks for

Awesome speech, thanks for the post.

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

Rand is making a good move

Rand is making a good move here. He's trying to make the bill good enough to work, but not so bold as to turn off all the central planner congressmen. It's striking a balance that might have a chance of passing. Sure, he could throw in abolishing minimum wage, etc, but he's going to lose the weak support with the more things he throws in. The liberal central planners really hate the idea of businesses having too much freedom and taking advantage of workers, but they might go along with it if they feel confident that they can start imposing regulations again as soon as the economy starts working.

It only occurred to me today that the great American collapse has already happened. It just didn't happen everywhere at once. It happened in Detroit first. This kind of tax-cutting law could be a great experiment to remind everyone again that, against all their Keynesian logic, low taxes and economic freedom is what made the country rich.

Wanna find outs what's in it before i assume to much.

But I'm optimistic.

Séamusín

Keys to Paul's plan:

— Providing eligible areas with a reduction in individual and corporate income tax to a single, flat 5 percent rate.

— Reducing the payroll tax.

— Providing child education tax credits to parents.

— Suspending EPA non-attainment designations in Economic Freedom Zone areas.

— Suspend Davis-Bacon wage requirements on federal projects.

Was optomistic...

How bout the repeal of the minimum wage in these areas, Repeal of occupational licensing, removal of barriers to entry like compliance codes, insurance laws, and OMG, dare I say it??? Reporting of earnings to the fuxking criminal cartel of organized violence that destroyed the damn city in the first place.

Séamusín

all good points!

I hope they're all part of the package. A US Senator can only do so much anyway.
It's up to the locals to do the rest. I'll remain optimistic.

I recall...

...seeing a slide show once entitled something like "Rent Control or Allied Bombing?" with alternating pictures of New York City in the 70s and various German cities c. 1945. You couldn't tell the difference.

Detroit's getting there.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Michigan has recently become a Right to Work state

the union influence will be significanly reduced in the coming years

along with the corruption and greed

NAFTA is the problem imo.

Taxes have to be reduced by at least half. They might as well put gravel roads back in there because those paved ones they have are certainly not doing them any favors lol

donvino

He is either very naive or very confident

I doubt you will find an establishment Republican getting involved in anything Detroit, why bother? A city that has had democratic party control for most of the last century, financially ruined due to corrupt government and a welfare system that failed. Most of Detroit's mayors wind up in jail, what's in it for a Republican senator from Kentucky?
On the other hand, if there was one city in the US that has all the potential for a turn around and become one of the greatest cities in the world, it's Detroit.
Will we hear a Libertarian president, one day in the future make a, 'Ich bin ein Berliner, speech in Detroit?

There are two Detroits.

There are two Detroits. The City and its band of suburbs. Management lives in the suburbs and often refuses to enter City limits. Detroit is largely a reservation. However, the City is so devastated that there are now real estate opportunities if walls can be built high enough and security is provided. Real estate prices are skyrocketing in Detroit as Chinese and other investor money senses what can be created in the void. Arab and Hispanic areas are reclaiming parts of the City. There is some stabilization and growth around the downtown and New Center (Wayne State University) areas. Entrepreneurs and artist types are beginning to drift in. The Chapter 8 rats and worse, having destroyed their own neighborhoods, are shifting into first ring suburbs leaving a investor ready urban moonscape in their wake.

Rand is demagoging to those investors not the residents of the City of Detroit or even its suburban former Reagan Democrats who defected back to Obama.

"Gay dudes talking about transmissions and clutch plates and gear ratios and drinking warm vodka from plastic cups. That's Detroit." -Charlie LeDuff

Does Rand even have a clue about the nuts and bolts of of this place? Or does it even matter if he is doing theater for a broader audience? C'mon Rand, tell these people that NAFTA, GATT, and the TPP have to go.

Free trade didn't ruin the auto companies

...unions and other governmental interference in the free market did.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

yes and no

As an example of government interference; in the 1970's, federal policies were adopted that would allow Japanese and S. Korean car companies to sell more cars here. The intent was to strengthen our allies. It worked. US auto worker jobs, however, were sacrificed to make this policy work.

Canadian, German, Japanese, and Swedish, auto workers are union by the way.

Nothing to do with it. the cheaper goods are,

The better for the economy.the problem is the regulations on entrepreneurs, that prohibit them from transferring those savings into productive industries with global demand.

Dont listen, think.

Séamusín

Question for you Olaf

Are you or have you ever been a member of a labor union?

(And yes, the McCarthyite formulation of my question is intentional)

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

on unions

Yes, I've been a member of a number of unions. Allow you to tell you about one. I worked on Great Lake freighters at one point and had to pay dues to the Seafarers International Union. The rates were steep. I noticed in the back of the hiring hall, where sailors waited for a boat with an opening, that there were cabin cruisers and Cadillacs parked in the back part. I assumed they belonged to union officials who were living off of my union dues. I worked on these boats with a lot of guys who had worked on the boats before there was a union. It is very difficult to look after you needs and rights when you don't even have access to a phone or a place to go after work. For all their faults, union officials made sure we worked only so many hours before we were paid overtime, that we got three good meal a day, clean sheet once a week, etc.. There was no other way of negotiating these things as an individual. I considered the arrangement a bargain.

I also lived in Detroit before the federal government undermined auto workers. It was nice. Everyone had enough money to end their kids to college and take two week camping trips in the UP. Even non union shops had to pay decent wages or they weren't going to keep their employees long. I was surprised when I moved to California to discover that cannery workers had to live on government handouts to supplement their pay and to find that the elites had written the laws to prevent competition and guarantee that the only jobs were on their terms. Meanwhile, our federal government gave away US jobs and destroyed Detroit in the process. There were other factors but that was the elephant in the room.

I sincerely hope that my favored candidates Cruz and Paul do not become just two more sock puppets for the rich and attack some useful liberties workers use to assemble into unions.

The benefits you describe...

...were obtained by extortion.

When "negotiating" with unions, employers are always under threat of violence, either from the union itself or from the National Labor Relations Board acting on the union's behalf. It is not a free negotiation, it is extortion. Unions "negotiate" with employers in the same way as an armed robber "negotiates" with his victims.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Your perspective will hand the labor vote to Hillary.

It is negotiation like any other sort of negotiation. What about when employers tell women they have to have sex to continue their employment or tell someone he has to work overtime above and above what was originally agreed upon? This happens all the time when the employer is supported with millions or billions of dollars and the employee has to meet their mortgage. Let' just say that a union's lawyers don't put up with such things and that is a good reason to be represented by a union; because they even the playing field. Now that the Supreme Court has ruled that corporations are individuals, I can't find the part in the Constitution that gives some individuals more power than others.

Truth hurts

"It is negotiation like any other sort of negotiation."

It is negotiation under threat of violence, as opposed to negotiation where neither party is under threat of violence: aka legitimate negotiation.

"What about when employers tell women they have to have sex to continue their employment"

The employer is not threatening violence.

"or tell someone he has to work overtime above and above what was originally agreed upon?"

If an employer violates an agreement, he is liable and can be sued. This is not a problem which requires a union to solve. Contrary to what you may think, the purpose of unions is not to make the employer honor agreements (that's what courts are for), the purpose is to extort better agreements.

"Let' just say that a union's lawyers don't put up with such things"

Let's just say that when union thugs assault "scabs" entering the workplace, the "scabs" have the right to defend themselves with lethal force. And let's just say that when union thugs trespass on company property to shut down business, the employer has the right to use lethal force if necessary to remove those criminals. And let's just say that nothing warms my heart like reading accounts of the old pre-1935 strikes when armed Bolshevik union thugs attacking company property were driven away with heavy causalities by machine-gun fire. Ah the good old days...

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

I disagree and think this is

I disagree and think this is a good move. Detroit is getting ready to reset after decades of bad policy under democrat rule. Its the least republicans can do to throw out some ideas to improve things. That said, I doubt it will have an affect on republicans getting any foothold in Detroit, but I may help with perception in other parts of the country where people are a little more amenable. In other words, its a way to demonstrate policy idea to the larger audience.

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

I agree. Detroit is going to

I agree. Detroit is going to come back booming. It will take a while, but it's just plain human history that indicates its repeated success. You can't beat geography. Detroit's access to waterways and a myriad of other natural resources guarantees its power in the future. I'm currently in Detroit for business and it's definitely beginning to bloom again. There's no place quite like it.

"The purpose of morality is to teach you, not to suffer and die, but to enjoy yourself and live." -Ayn Rand

Be careful up there.

Be careful up there.

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

Mr. Sig escorted me around

Mr. Sig escorted me around the city and kept me safe. Lol

"The purpose of morality is to teach you, not to suffer and die, but to enjoy yourself and live." -Ayn Rand

Shoulda figured...

Shoulda figured...

The human race divides politically into those who want people to be controlled and those who have no such desire. - Heinlein

Exactly

Actually enacting serious free market reforms in the People's Republic of Detroit is an extreme long-shot, as I'm certain Rand knows. But this is a fine opportunity for him to advertize his economic policies to the nation at large.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

Rand's gambit

Rand is going to Detroit to deliver an anti-union message to Reagan Democrats? Has he thought this out? Reagan Democrats pushed Reagan over the edge to victory. Does Rand really want to antagonize them. How about instead telling them that he is on their side and wants to end NAFTA and other agreements that ship their jobs offshore. That he wants to tax import corporations instead of the middle class. That he wants to severely punish the cheating employers of illegal aliens. Rand should let them know that he will create a shortage of US workers so they can demand, instead of beg for, a larger share of the national economic pie.

Why doesn't Rand propose any of that?

Because he opposes all of it!

Rand is for free market capitalism, not protectionism.

As are we...or, so I thought.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."

reconsider

The founders depended on import taxes to fund the federal government. Wilson had a different idea when he pushed through the 17th. Amendment which eventually transferred the bulk of taxes from import corporations and on to the back of middle class taxpayers. I'm with then founders, not Wilson on that one. My loyalties are no more to big corporations than big government.

Of unions, please consider that the rich hire personal lawyers, accountants, and lobbyists to promote their interests. I'm fine with that. Most Americans , however, cannot afford to do that but they can organize unions to collectively accomplish the same goals of promoting their own interests. It seems so very libertarian to me that everyone should be able to to hire lawyers, accountants, and lobbyists and not just the 1%. or 5%.

A revenue tariff is one thing, a protective tariff another

The founders (the good ones anyway) favored the former, not the latter.

As for unions, they are not voluntary associations formed for the purpose of facilitating cooperation among workers - that's a joke. Unions are criminal gangs which use violence or the threat of violence (sanctioned by the state since 1935) to extort money from legitimate businessmen. If it were up to me, I'd repeal the Wagner Act and related legislation, abolish the Labor Dept., and prosecute all existing unions under the RICO Act.

Unions are state-sponsored cartels of laborers, in the same way as the Federal Reserve is a state-sponsored cartel of bankers, or the FDA is a state-sponsored cartel of pharmaceutical companies. Cartels use violence to screw their competitors and the consumer (and often the taxpayer) in order to provide their members with above-market profits. To hell with all cartels.

"Alas! I believe in the virtue of birds. And it only takes a feather for me to die laughing."