Reasons For The Collapse Of Detroit

Detroit’s history is full of many ups and downs, uneasy racial and economic tensions, and perseverance through adversities. Although Detroit has a long and prosperous history, primarily due to its automobile industry, a bankruptcy was filed on July 18, 2013. By this time, the city had reached 18-20 billion dollars in debt. This collapse not only affected the city’s industries, but the citizens of Detroit as well. Detroit is known to be one of the most difficult cities to live in as it breeds economic hardships. As Detroit rebuilds itself from economic and political failure, many people of the city endure hardships such as crime and poverty. Detroit has always relied heavily on it’s automobile industry. After it was founded by Antoine de la
Kwame Kilpatrick was a corrupt politician who took bribes, setbacks, and extorted companies in Detroit. Although he is not the sole reason for the bankruptcy, he did not help the situation. The city spent an estimated 8.7 million due to Kilpatrick’s whistleblower trial, while another 9 million were put into pockets off of shady business deal with the sewer and water company. 500 thousand dollars that was meant for children and seniors went to Kilpatrick’s friends and wife. Kilpatrick attempted to make several problems in Detroit less than what it actually was, such as the unpaid pensions. Although Kilpatrick was not the only person in government who took bribes and setbacks, the was one of the major players who led to the collapse of Detroit.
Politicians were constantly taking bribes and looking the other way at shady business practices. Detroit politicians would too often take the side of the big business while the citizens of Detroit were harmed. For example, during the Poletown vs. City of Detroit case, residents of a neighborhood were forced to leave so that General Motor could build new infrastructure. The neighborhood ultimately lost and many residents were forced to move out of their homes so that big businesses would prosper. (Plumer)
Finally, the state of Michigan declared the city of Detroit in a financial emergency on March 1, 2013. Kevin Orr was named by Governor Rick Syder, as the emergency manager and he was to oversee Detroit’s financial stability. Orr stated that he did not want to pursue a bankruptcy for Detroit as municipal bankruptcies were rare and very difficult to come by. Orr’s original hope was that he could find people to settle for pennies on the dollar that were owed from pensions and other unpaid debt. Eventually, there was no other choice but to file for bankruptcy.