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Detroit's recent file for bankruptcy: a possible look into the future of what could happen to other cities here in the U.S.

Detroit just recently filed for bankruptcy, if you did not already know. The city was once a economically thriving city. The city's booming auto industry kept that city afloat since its birth. However, the auto industry here in the U.S. has saw drastically declined; we recently saw that with through GM. Labor costs here in the U.S. have pushed companies to international grounds.

Could we possible see other U.S. city's crumble because of off shore labor?
Also, what can we learn from Detroit's file for bankruptcy?

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  • Aug 10 2013: Detroit's problems were of hubris. They have been in decline for 6 decades and they did nothing to adapt or change to be competitive. Detroit was fat and happy feeling they had it made. They didn't feel they needed to embrace another industry or move up the education or labor ladder to make their city grow.

    More political subdivisions will fail if they do not grow organically. That is grow their tax base with rising real estate values instead of raising millage. Tax all business fairly- not taxing them to death until they leave or giving fee in lieu of to get a new business and make up the difference by taxing existing businesses more. These political leaders have to create demand for their areas. There is no reason to decline in population for more than one decade. The first decline is the wake up call, if you do not respond it is the entire community's fault for failure to adapt.

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