Detroit filed for bankruptcy today, becoming the US's largest public sector bankruptcy.
I saw this on the news today. Detroit was ruled for years by Democrat politicians who promised endless benefits, voting more and more for themselves
and for others at taxpayer expense, with endless taxes necessary to support these voted expenditures. Now, Detroit's pensions are underfunded by
billions of dollars. 40% of Detroit street lights don't work. If you call the police because an armed intruder is breaking into your house, it
takes an hour for the police to arrive in response.
And yet, the City Manaager of this bankrupt city gets a salary of over $200,000 per year, not counting benefits.
Many homes and businesses are abandoned--the cost of doing business in Detroit is too high. People have literally fled the city.
Last year, I read an article to the effect that Detroit has passed the point of no return; it has lost so many people that it has no hope of ever recovering.
Detroit in decline
Population has shrunk from a peak of 2 million in the 1950s to 713,000 today
Highest violent crime rate of any major US city, with 15,245 reported incidents in 2011
Some 78,000 abandoned and blighted buildings
40% of street lights do not work
Only a third of the city's ambulances are in service
Just 53% of owners paid their 2011 property taxes
Source: City of Detroit Proposal for Creditors