Detroit: A Metaphor for America
Aug 17th, 2013 | By Dr. Jim EckmanDetroit is the largest American city ever to file for bankruptcy. The Economist summarizes the details: Its long-term debt is estimated to be $18.2 billion ($27,000 per resident). Of this amount, about $9.2 billion is in unfunded retirement benefits. Since 2008 the city has spent about $100 million more each year than it has brought in. Attempts to solve these monumental challenges have been hampered by a feeble-economy, a shrinking population and rapidly increasing ?legacy costs.? Property-tax revenues have declined by 20% since 2008; income tax revenues by 30% since 2002. Fifty years ago the city was rich: GM, Ford and Chrysler made nearly all the cars sold in America. Detroit?s population was 1.8 million people. Today, it is 700,000?many of those are poor and poorly educated (e.g., 82% have no more than a high school diploma).

