http://www.theguardian.com/world/2013/dec/...ion-judge-rulesDetroit. Motor City. But most of the engine has long since left the vehicle. Along with the jobs that made the city prosperous in the 50s came and went a vast number of people.
Unemployment is now reported to be around 11 or 13%, with unofficial numbers going to 20. Frankly, I find this pretty low for a city that is notorious for its absence of job prospects, though perhaps that can be explained by the city having been abandoned by well over a million people in the last 4 decades.
More than a third of people live in poverty. Crime numbers are high. But was a bankruptcy the only way out?
Some say no, because other big cities like New York, who were in a similar position, have made it out of their predicament through different methods. Others say no, because they feel the bankruptcy was purposely chosen to attack pensions. Pension funds are an important creditor to Detroit. Now that it has been ruled that Detroit can't pay its debts, it is apparently legal to cut them by 84%. That's not to say they will choose this action, but it's a distinct possibility, which the people and unions fear very much.
What is not legal for Detroit is to raise taxes. Because that would be socialism, and socialism doesn't work.
What is also not legal in Detroit is racketeering conspiracy, fraud, extortion and tax crimes, which have all been found in Kwame Kilpatrick, former Mayor of the city. He left office in 2008 over lying in court. Since then, there have been 2 new mayors, both of which have been stripped off their authority by the Michigan Governor. Instead, an "Emergency Manager", Kevyn Orr, controls the city. But Kwame is going to have to spend the next 28 years in prison. So at least there is that.
Silver linings.
