Detroit filed bankruptcy on July 25 ,2013, making it the largest American city to take such a course of action. The implications of this bankruptcy are that investors and retirees will receive only 17% of their previous funds.
The American public was completely surprised as Governor
Rick Snyder approved this course of action. Many citizens believe this ordeal will happen to other cities, too! To them, it seems as though Detroit’s bankruptcy was a random event.
Despite the fact that the American public was in total shock, those who understand the facts can quickly conclude the cause of bankruptcy. Detroit has accumulated numerous problems and few solutions, ultimately leading to their downfall.
Here are some key indicators of the event:
Population that fell 25% this decade alone.
Police response time (52 minutes versus 11 minute national average)
Unemployment (18.6% versus 7.6% national average)
Superfund Sites (70 in Detroit alone versus 24 state average)
Violent crime (2,137.4 versus 369 state average)
As the key indicators are examined, we can determine that the bankruptcy was predictable.