Discussion in 'Americas' started by W.G.Ewald, Jul 19, 2013.
Detroit files for Chapter 9 bankruptcy amid staggering debts | Detroit Free Press | freep.com
$18.5 billion in debt, that is more than some countries of millions.
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Flashback: Obama boasted in 2012: â€˜We refused to let Detroit go bankruptâ€™ | WashingtonExaminer.com
Detroit's been struggling and dying a slow death for decades now. Its demise was a result of a failure to diversify (i.e. over-reliance on the auto industry), poor planning (i.e. failure to change its pension and other financial plans after its population began to decline), rampant crime (i.e. rise of heroin trade and gangs), and liberal/union/democratic policies that weren't in its best interests.
Detroit could do well by learning from the experiences of Pittsburgh, a once steel powerhouse that faced extensive losses when cheaper steel from overseas markets flooded the region. They managed to get along by diversifying into providing higher-quality steel, as well as robotics, medicine, and other industrial needs.
Detroit needs to use this opportunity to restructure and rebuild itself.
You do realize that he was talking about the automobile manufactures and not the city itself yes?
Yes, agree with all of the above. The one thing I would add however is Pittsburgh's investment into top tier academic institutions.
The real hurdle to Detroit re-balancing the finance are pension payments. How do you cut off tens of thousands of pensioners who worked a lifetime to earn it?
The underlying economic problem for the city of Detroit is the pensions of government workers, which was also a big problem for the automobile manufacturers with its workers.
Good point about Pittsburgh.
Detroit's problems exceeded far beyond pension funds. I don't think we can compare Detroit's demise with that of the auto industry because if anything the auto industry has actually rebounded since Obama's cash infusion. But as I said this is a false equivalency and has very little to do with partisan politics.
Detroit is the city where I want to settle down in the future
Disappointed by the news.
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