In an exclusive interview with Breitbart News, Sen. Rand Paul vowed – graphically – to prevent the Obama administration from bailing out the bankrupt city of Detroit.
“I basically say [Obama] is bailing them out over my dead body because we don’t have any money in Washington,” Paul told the newspaper in a phone interview Friday.
The White House issued a statement Thursday on Detroit’s historical bankruptcy filing that read, in part:
The President and members of the President’s senior team continue to closely monitor the situation in Detroit. While leaders on the ground in Michigan and the city’s creditors understand that they must find a solution to Detroit’s serious financial challenge, we remain committed to continuing our strong partnership with Detroit as it works to recover and revitalize and maintain its status as one of America’s great cities.
Paul said a federal bailout won’t teach other cities, especially those in California, to stop making bad fiscal decisions and spending recklessly.
According to the Breitbart report, Paul continued:
“You don’t set up an implicit promise from the federal government that everybody is getting bailed out,” Paul said. “It’s sort of like too big to fail for banks. If you have too big to fail for cities or for states and they believe they’ll be bailed out they’ll continue to make unwise decisions.
“So, really, the answer is, just like the federal government, live within your means and spend what you have but don’t spend money you don’t have. The problem is so many of our state governments, the politicians are being elected by the public service unions. If the public service unions want to be paid twice as much as what private sector employees make, they want twice as good benefits and twice as good a pension.
… It’s become untenable. But the main thing is we cannot send a signal from the federal government that cities and states are going to be too big to fail.”