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There is much speculation with how Detroit can rebuild their city after they declared bankruptcy as it is has never been seen before in such a large city. |
Climbing Out of the Dark Hole
"Two years after exiting the biggest bankruptcy in municipal history, Detroit still faces challenges including an unexpected gap in pensions and the absence of a long-term economic plan that leaves the city vulnerable to further setbacks." - Nora Colomer
After declaring bankruptcy and being completely broken as a city, Detroit faces a tough uphill battle to become even half of the city it once was many years ago. Bankruptcy may have been the short term solution to all of the financial issues and stress that Detroit was facing but long term the city still must address a possible solution. There have been many meetings among the governing body of Detroit to brainstorm ideas of how the city may begin to earn money long term and there is consistently roadblocks to these plans.
The city is nowhere near what it used to be, both physically and economically which prevents many of these ideas from becoming realities. Without a large enough population, it becomes hard for their to be any sort of creation of industry and business. "Despite the abundance of vacant commercial space in the city, very little of it is actually ready for occupancy, with adequate walls and floors and electrical systems." - Ben Austen. The people who still habitat the city of Detroit are mainly living in poverty which does not even allow the city to collect tax money from a majority of them. Due to this, the city also has run into the problem of free riding.
Free riding is a major issue in the city of Detroit and was even a large contributor to the declaration of bankruptcy of the city. The issue of free riding results from the availability of public goods to those who could not afford them if they were not free. Due to the lack of jobs in the city of Detroit, many residents live in extreme poverty and do not pay for their public services such as water and electricity. This leads to the dilemma of whether to support these citizens and incur more debt or force them to face the harsh consequences of living without means of survival.
The presence of successful business people within the city of Detroit allows for the possibility of a bright future that is in the balance. Dan Gilbert and Mike Illitch have taken it upon themselves to create an environment that can be seen as appealing to outsiders and hopefully bring more business to Detroit once again. "Downtown Detroit has seen a significant uptick in investment over the last ten years, led by the stewardship of billionaire Quicken Loans founder and Detroit native Dan Gilbert and fellow Detroiter and billionaire Little Caesar's Pizza founder and Detroit Tigers and Red Wings owner Mike Illitch. Their efforts have led to the types of revitalization that typified many cities in the '80s and '90s -- downtown stadiums, office and entertainment development." - Pete Saunders
"Two years after exiting the biggest bankruptcy in municipal history, Detroit still faces challenges including an unexpected gap in pensions and the absence of a long-term economic plan that leaves the city vulnerable to further setbacks." - Nora Colomer
After declaring bankruptcy and being completely broken as a city, Detroit faces a tough uphill battle to become even half of the city it once was many years ago. Bankruptcy may have been the short term solution to all of the financial issues and stress that Detroit was facing but long term the city still must address a possible solution. There have been many meetings among the governing body of Detroit to brainstorm ideas of how the city may begin to earn money long term and there is consistently roadblocks to these plans.
The city is nowhere near what it used to be, both physically and economically which prevents many of these ideas from becoming realities. Without a large enough population, it becomes hard for their to be any sort of creation of industry and business. "Despite the abundance of vacant commercial space in the city, very little of it is actually ready for occupancy, with adequate walls and floors and electrical systems." - Ben Austen. The people who still habitat the city of Detroit are mainly living in poverty which does not even allow the city to collect tax money from a majority of them. Due to this, the city also has run into the problem of free riding.
Free riding is a major issue in the city of Detroit and was even a large contributor to the declaration of bankruptcy of the city. The issue of free riding results from the availability of public goods to those who could not afford them if they were not free. Due to the lack of jobs in the city of Detroit, many residents live in extreme poverty and do not pay for their public services such as water and electricity. This leads to the dilemma of whether to support these citizens and incur more debt or force them to face the harsh consequences of living without means of survival.
The presence of successful business people within the city of Detroit allows for the possibility of a bright future that is in the balance. Dan Gilbert and Mike Illitch have taken it upon themselves to create an environment that can be seen as appealing to outsiders and hopefully bring more business to Detroit once again. "Downtown Detroit has seen a significant uptick in investment over the last ten years, led by the stewardship of billionaire Quicken Loans founder and Detroit native Dan Gilbert and fellow Detroiter and billionaire Little Caesar's Pizza founder and Detroit Tigers and Red Wings owner Mike Illitch. Their efforts have led to the types of revitalization that typified many cities in the '80s and '90s -- downtown stadiums, office and entertainment development." - Pete Saunders