Detroit Goes Bankrupt
Once a thriving city, Detroit, Michigan is now officially broke. The city nicknamed ‘Motown’ filed for bankruptcy.
The nickname stems from 1959 when Berry Gordy, Jr. formed Motown Records. The music company based in the city known for building cars put the words motor and town together.
Also in the music department, one of the biggest hit songs of all time in country music was ‘Detroit City’ by country hall of famer Bobby Bare.
With the major car manufacturers producing automobiles by the millions and music known as ‘The Motown Sound’ selling by the millions of records Detroit was a big deal. The Tigers, Lions and Red Wings also kept the city on the map during all major sports seasons.
So what happened? According to The Associated Press, here’s what we have learned.
Detroit’s decades-long fall from industrial powerhouse to financial ruin was the result of a long, slow decline in population and auto manufacturing.
Thursday’s bankruptcy filing by the one-time irrepressible engine of the American economy had been feared for months, but much about the city’s path forward remains uncertain.
Bankruptcy could mean laying off employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.
Now city and state leaders must confront the challenge of rebuilding Detroit’s broken budget in as little as a year.