The bankruptcy of the City of Detroit made headlines in newspapers across the country. It’s the “largest American city ever to file for bankruptcy,” according to The Economist.
The city has estimated debts of $18.2 billion, approximately $27,000 for every resident. Since 2008, reports The Economist, the city spent around $100 million more than it brought in. Detroit has long been in decline, caused by a dwindling population and a failing auto industry, and attempts to balance the budget in recent years have largely failed. [Read more…]