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How Detroit went broke. It didn’t have to happen

Detroit-debt

The Detroit Free Press (a mainstream newspaper) has a sobering in depth look at why their beloved city is bankrupt. It’s the usual culprits. Politicians who spent recklessly, took on huge debt, gave themselves and public workers huge pensions, and hired more and more employees. Wall Street aided and abetted the problem, giving the junkie more money at onerous rates and terms. It became a death spiral. People left the city. Taxes rose for those who remained. No one thought about the future, only about what they could grab for themselves. Public pension funds became piggy banks to be looted and corruption became pervasive.

And none of this needed to happen.

When all the numbers are crunched, one fact is crystal clear: Yes, a disaster was looming for Detroit. But there were ample opportunities when decisive action by city leaders might have fended off bankruptcy.

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