
Contents
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Introduction Introduction
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Detroit: Why did the city enter bankruptcy in 2013? Detroit: Why did the city enter bankruptcy in 2013?
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Detroit: the bankruptcy proceedings and the resolution Detroit: the bankruptcy proceedings and the resolution
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What may we learn from the bankruptcy of Detroit? What may we learn from the bankruptcy of Detroit?
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Local governments may have much brighter futures after bankruptcy than before Local governments may have much brighter futures after bankruptcy than before
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The organization and financing of local governments in the US must change when there are massive demographic shifts and far-reaching, long-enduring economic changes. A governmental structure effective in one era may be useless if there are great shifts in technology and the economy The organization and financing of local governments in the US must change when there are massive demographic shifts and far-reaching, long-enduring economic changes. A governmental structure effective in one era may be useless if there are great shifts in technology and the economy
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Those who develop urban policy and write laws must consider how the consequences of the nation’s history of racial inequality interact with current changes in the labor market to greatly disadvantage African-Americans in Detroit and Rust Belt metropolises Those who develop urban policy and write laws must consider how the consequences of the nation’s history of racial inequality interact with current changes in the labor market to greatly disadvantage African-Americans in Detroit and Rust Belt metropolises
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Urban planning and local governance must realistically deal with the likelihood of population decline and modest economic growth Urban planning and local governance must realistically deal with the likelihood of population decline and modest economic growth
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A concluding comment about the federal government and cities approaching bankruptcy A concluding comment about the federal government and cities approaching bankruptcy
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Notes Notes
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Three Detroit in bankruptcy: what are the lessons to be learned?
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Published:April 2017
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Abstract
City governments in the United States are largely supported by taxes imposed upon their residents and business owners. After World War II, Detroit lost its economic base as factories, residents and trade moved from the city to the suburbs. The tax base disappeared. The recession that began in 2008 drove the city into bankruptcy. Fortunately, that process was concluded quickly. At present, major firms and prosperous individuals are investing great sums in erecting new and renovating old buildings. In downtown, Midtown and the east river front, there are numerous signs of economic growth and population increases. Will Detroit become a model for the revitalization of older cities that once relied upon manufacturing? Or will Detroit become a model of “disaster capitalism,” that is, a city with a prosperous core but with many neighborhoods populated by impoverished minority residents whose economic status falls further and further behind that of those who are now enjoying the revived areas of the city of Detroit?
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