Showing posts from July, 2013

Bankruptcy Can Happen To Anyone (Or Anything) - Even A City

Over the last few years, many cities across the United States have had to deal with smaller budgets and rising costs. Many have found ways to cut expenses, usually by passing the costs directly to its residents. Others, however, have not been so lucky. Examining the financial troubles of some cities or municipalities is a helpful reminder that money woes and potential bankruptcy are issues that affect everyone, from private cities and business even to organized governments.

For example, take the city of Detroit. The Michigan city’s downfall has been highlighted over the years due to many factors, the most of important of which is its ties to the auto industry. As the auto industry has fallen and reorganized itself, with help from the government, to survive, many have wondered about the fate of Detroit.

Right now, Detroit is doing its best to stave off bankruptcy, however, if its plan succeeds it will be to the detriment of many, including retired city workers. Detroit’s current plan, …