To think that once Detroit was the motor behind the Arsenal of Democracy, now its an example of what municipal bankruptcy looks like.
I’ve discussed this before but what is happening in Detroit is a symptom of what is happening in many American cities these days. It is probably the most extreme example but Motown points to a bleak future for cities that are loosing tax revenue, population, and business while increasing spending on government employees. The situation has become so bad that bankruptcy is being discussed openly. My guess is that this will happen, the only question is when. One thing I can safely predict though is many more cities will declare bankruptcy in the coming months.
Eventually this will mean that cities can get out from under the crushing union contracts, lavish employee benefits, and generous pensions that got them into their fiscal mess in the first place. However, in the interim city services will suffer and citizens will be left on their own to deal with emergency situations. In many respects, cities will become wild and dangerous places like some frontier towns were back in the 19th Century.
The solution is to plan on taking care of yourself in emergency situations. Individuals and communities will supplant municipalities as services decline in the face of continuing economic stagnation. This will produce greater self-reliance along with strengthening communities, but along the way it will be a rough ride.
Plan accordingly.






