In Detroit’s Bankruptcy, Contracts Still Matter

https://portside.org/2017-12-18/detroits-bankruptcy-contracts-still-matter
Portside Date:
Author: Economist Dean Baker
Date of source:
Yahoo Finance

'In these cases involving businesses, somehow a contract is a contract, end of story. The relationship is sacred and no one suggests changing the terms after the fact. However, in the case of the pensions for city workers, these are just office workers, custodians, or garbage collectors. The media would have us believe that contracts with these sorts of people aren’t real contracts. If they prove inconvenient, then they can be changed.

'While that may be the view that the media is trying to push, the rest of us should insist that the law and the constitution be respected. Detroit’s city workers have as much right to have their contracts respected as the Wall Street bankers making millions and billions off contracts that are often far more questionable.

'This is class war at its ugliest. The elites have to learn that they don’t get to change the rules as they go along, if they want their contracts to be respected they will have to respect contracts that protect working people as well.'

 


Source URL: https://portside.org/2017-12-18/detroits-bankruptcy-contracts-still-matter