Bankrupt Detroit Not So Bankrupt Anymore

"Judge Approves Bankruptcy Exit Plan For Detroit"
By: Ed White
Source: Huffington Post
http://www.huffingtonpost.com/2014/11/07/detroit-bankruptcy-plan-approved_n_6122660.html?ir=Business

Detroit has finally come up with a plan that will expel them from bankruptcy. This city has been bankrupt for a while now and the violence and danger rate has raised significantly. Although, on Friday, a judge cleared an 'exit plan' that will free Detroit from the bankruptcy and also make it safer. "The plan calls for cutting the pensions of 12,000 non-public safety retirees by 4.5 percent, erasing $7 billion of debt and spending $1.7 billion to demolish thousands of blighted buildings, make the city safer and improve long-neglected basic services" (Source 1). Detroit which is the base for the car industry; that is they are nicknamed the Motor City, became the largest city to ever claim for bankruptcy in U.S. history. "Detroit was brought down by a combination of factors, including corruption and mismanagement at City Hall, a long decline in the auto industry, and a flight to the suburbs that caused the population to plummet to 688,000 from 1.2 million in 1980. The exodus has turned entire neighborhoods into desolate, boarded-up landscapes" (Source 1). Detroit's size was also a factor to claim for bankruptcy. They just did not have enough revenue because of the decline in the auto industry, so they remained in debt for years. "With more square miles than Manhattan, Boston and San Francisco combined, Detroit didn't have enough tax revenue to cover pensions, retiree health insurance and buckets of debt sold to keep the budget afloat" (Source 1).

This is great news and another step forward for the Untied States and especially the city of Detroit. By finding a way to free Detroit from bankruptcy had to be done, it was unacceptable. What was done so efficiently on Friday leaves the corruption and debt in the history of Detroit that people wish never to see again and makes the future a brighter day and something that the people who live in Detroit will look forward to. The darkest days are behind Detroit. Whatever happens now will only get better and be for the better.