The once booming factories and plants of Detroit have stopped humming their daily songs of work. People mill about looking for work or dejected from their efforts. Crime is on the rise in the Motor City and the world has watched as the once mecca for car enthusiasts slips into a near economic coma of frustration and anger over some direction. The ball is in the Obama court once again as the city that he campaigned and used to promise economic recovery now asks for his support in a bailout, a move that is highly unlikely and would be extremely unprecedented. The approach, however, is a unique one that may cause a bit of confusion in how to handle.
Detroit, as a city, has filed for bankruptcy and sought the help of President Obama and the Democrats on Capitol Hill to provide them with the funds needed to regain some traction economically. The move, as aforementioned, is unheard of and it is likely that the Obama Administration will avoid such financial reward for failure. Obamacare may serve as the missing link between financial relief and true bailout.
Along with several other major cities, it is reported that the government in Detroit is seeking to shift retirees into the Obamacare insurance exchange for employees that are too young for Medicare but already retired from the job. This would mean less payment for the local government and a chance to place more of a burden on the federal government. As a result, it would lower the amount owed and free up some financial opportunities for Detroit as they attempt to pay back their creditors via bankruptcy proceedings. In its most basic form, it would not be considered a bailout. It would, however, cause a nearly six billion dollar burden to be placed upon Washington, another unintended consequence of the Obamacare bill.