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I had a chance to watch the documentary Bankrupt, which was just released a few days ago.  While the movie focuses on the financial and political collapse of a once-great American city, there are lessons from this film that relate to preparation.

You can view the entire movie here, its pretty depressing yet offers a clear-headed explanation about how Detroit got from where it was to where it is today.

What does this have to do with preparation?

When cities can’t pay their bills due to corruption, incompetence, and fiscal mismanagement, city services suffer.  That can take on many forms including:

The end result is a city that is less livable and desirable for residents.  The unions, big companies, and bureaucrats are taken care of while the citizens are left to fend for themselves.  Think of Detroit as a prime example of cronyism where the taxpayers get preyed upon by an unholy alliance of Bigs (labor, business, and government).

The big picture looks like this;  both now and in the future, governments will have less ability to perform essential services for their citizens.  The crushing load of increased costs (union contracts, pensions, public debt, and others) combined with falling tax revenues means municipalities are in a bind that they won’t be able to get out of without declaring bankruptcy.  This trend will continue as more cities, both large and small, run out of money and credit.  The result will be small government out of necessity since the current reality is not sustainable.

With that in mind, think about how you should prepare.  What steps do you need to take in order to ensure a higher degree of self-sufficiency and resiliency during these difficult times?  After all, if Detroit can go from the Arsenal of Democracy to the largest municipal bankruptcy in history…it can happen in your town too.