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New Document
LaRouche Warned You About the Doom of Detroit in 2005
July 24, 2013 • 7:19PM

The current genocidal assault on what remains of the population of the once-great industrial city of Detroit was fully forecast by Lyndon LaRouche back in April 2005, at the moment that the Bush Administration and the likes of Felix Rohatyn were tearing down the last remnants of the American machine tool design sector. LaRouche not only spelled out the looming genocide against Detroit, he presented an in-depth alternative to the plans of the Bush Administration and Wall Street fascists to destroy the last remnants of the machine tool design capacity of the United States, and demanded emergency action from the U.S. Congress.


LaRouche issues warning, poses Emergency Recovery Act.

The failure of the House and Senate to act to implement LaRouche's Economic Recovery Act of 2005, along with the 1999 repeal of the Glass-Steagall Act, were conscious acts of complicity with genocide, which the Obama Administration has continued with a vengeance, to this day.

Back in 2005, while the Bush Administration, abetted by Rohatyn and other Wall Street looters, was dismantling the last remnants of the American auto manufacturing sector, LaRouche issued a pointed warning that should resonate in the ears of every Member of Congress today:

"If we allow the U.S. auto manufacturing industry to be destroyed, the U.S.A. becomes a virtual 'Third World' nation overnight. The nation's machine-tool design capability, most of which is tied up in the U.S. auto-manufacturing firms, is lost.

"The loss of employment of that machine-tool design segment of that part of the labor-force, means many times that number of employees out of jobs, with no other place to go.

"The loss of auto plants means an economic disaster, approaching ghost-town proportions, for what are already highly vulnerable entire towns, counties, and cities, even states of the union throughout many parts of the country. This could set off a chain-reaction collapse much, much worse than President Herbert Hoover's foolish reaction to the 1929 crash."


From ERA: Decline of high paying manufacturing jobs, rise of low wage service jobs.

LaRouche even spelled out the crux of the solution, which was then elaborated in the form of legislation ready for emergency action by Congess.

"Cutting back on automobile manufacturers' plants and payrolls is not a sane alternative," he warned. "The answer is to diversity the product line. The key to any sane approach is to accept the reduction in the number of automobiles produced by U.S. automakers, but to replace that work immediately with a switch to other categories of technologically very high-grade products, which the auto industry's machine-tool capacity is uniquely qualified to design and produce. Members of the U.S. Congress are already focussing attention on urgently needed mass-transit systems, power-generation and distribution systems, and other urgent needs of the nation. These would not be make-work projects, but are the new production needed to prevent the United States from continuing to collapse physically into Third-World conditions, throughout most of the nation.

"Action, by the U.S. Federal government and others, is urgently needed, to prevent an across-the-board collapse of not only the U.S. auto industry, but the counties, towns, cities and states, and their people, which would be pulled under by failing to act now with the reforms needed to save the industry by switching to a new combination of high technology machine-tool-design products."

The repeal of Glass Steagall, along with the failure to fight to save Detroit and the entire region's machine tool sector, are the two primary reasons that Detroit is now facing total destruction. The future of the entire nation now comes down to one simple question: Will sufficient Members of the U.S. Congress show the courage and honesty to reverse their disastrous capitulation to Wall Street by immediately passing the legislation before both bodies, to reinstate Glass Steagall?

This time, they'll have to brave the opposition of Bush's successor, Obama, who has followed the same Wall Street policy of slashing the productive sector, and opposing Glass-Steagall.

With Glass Steagall restored, this summer, Congress can unleash a flood of longterm, low-interest credit to take up the challenge posed by LaRouche in 2005. Enough of the skilled work force and vacant factory facilities are still available even at this late date to launch an historic recovery. Detroit can once again be the Arsenal of Democracy—not for the purpose of defeating fascism on the battle fields of Europe and the Pacific, but to defeat the fascicm of Wall Street by wiping out the gambling debts and restoring a functioning commercial banking sector to facilitate urgently needed great projects, such as the North American Water and Power Alliance (NAWAPA).


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