Motown stops motoring.................

 

Our beloved Motor City has just (finally) filed for bankruptcy. 

 

Over 18 billion dollars in debt was the accused culprit along with the loss of tax revenue from a declining population. City residents have declined to around 700,000 from a peak of 2 million. Some mean spirited commentators go so far to suggest that a history of corruption contributed to Detroit's financial, social and economic demise.

 

On the upside, both residential and commercial real estate is cheap. City officials and service employees are finally able to handle the workload. There are no water or electricity shortages. Itinerants and miscreants have a wide selection of places to crash.

 

Traffic jams are history. Pollution has declined. Crime, however, has not diminished. The response time for police to get to a crime scene has in fact increased.

 

The iconic home of General Motors, Ford and Chrysler is but a shadow of its former self.

 

I vividly recall the time when the notion that what was good for GM, was good for America. To be sure, this philosophy applied equally to the US economy and to Detroit itself. The city became a victim of its own propaganda and conspired with the auto manufactures to over indulge city politicians, trade unions and liberals to the point where no money remained to pay public debts. 

 

It is highly likely that the newfound American habit of paying enormous pensions to higher level city employees also took its toll from the public kitty. It now remains to be seen which debtors will be paid, how much and when. Bankruptcy adversely affect civil servants drawing pensions. The question is by how much.

 

Some employee groups are already planning law suits to counter the city's request for bankruptcy.  

 

Ironically, Detroit is better off now than it has been in decades. It has finally come to terms with its errant past and placed its future in the hands of the judges, financiers and lawyers.