11 Photos That Show Why Detroit Just Filed For Bankruptcy
It is not surprising that Detroit just filed for Chapter 9 Bankruptcy; the city has been struggling for years. In 1950, Detriot was booming, with over two million people living in the city. Now, only 700,000 remain. Over the past 5 years, Detroit has spent, on average, $100 million more than it has received in tax revenue. They hold $11 billion in unsecured debt, which includes $6 billion for health care and $3 billion for pensions. In June, Detroit displayed its inability to pay creditors when the city defaulted on a $39.7 million payment.
Detroit emergency manager Kevyn Orr said that the total amount of debt and liabilities the city holds could amass to almost $20 billion, making it the largest municipal bankruptcy in U.S. history. A recent documentary entitled Burn even depicted the crumbling state of the Detroit fire department and its inability to keep up with the tremendous amount of fires throughout the city.
That's just one example of the terrible state the once booming city is now in. These pictures are evidence enough.
