How come cities in the Midwestern US are going bankrupt?
Detroit is already bankrupt, and cities like Columbus, Clevland and Chicago are on their way..
How come? Is there any way to change the situation? How could you get a city to become un-bankrupt?
- mawduce65Lv 67 years agoFavorite Answer
Simple, the American dream is killing cities. At the turn of the century most people flocked to the cities for work and for a place to live. During the 1950's it became the American dream to buy and own a home in the suburbs. Now, this is where most people live, in urban areas. There has been an exodus from large cities for some time. When the people leave, the money leaves.
This is why most towns around large cities are mostly doing well. Everyone moved in. People still work in large cities but them take their money right back to the towns they live in.
I live in a city of about 250,000. That's big for Massachusetts. Yet almost every small town around the city has had a Wal-Mart for some time. This city just got one about 2 years ago, why? Because the small towns is where you find the most people who are shopping. There are no large shopping malls here, the last one is currently being demolished. Replaced with a bioengineering firm.
- Fester FrumpLv 77 years ago
Pretty simple actually.
The people/companies that paid taxes (providing the income) in one way or another stopped paying taxes to the city of Detroit at a rate to sustain the cities spending rate.
Detroit didn't react fast enough to cutting it's expenses.
Bill collector came a calling.
Same thing is happening with the federal government. All the talk you hear about raising the debt ceiling, sequesters, gov shutdowns is the same issue. The federal government takes out a new credit card every time they raise the debt ceiling, they use the new credit card to pay off the old credit card.........how long is that sustainable?
In all cases, city/state/federal government it's inept, corrupt, unqualified or some combination thereof that gets us into these situations.
Don't feel bad, many of the European countries are in a similar or worse situation.
- 7 years ago
the jobs left
and those cities are in decline until they are able to replace the manufacturing base that they lost
they need to follow the examples of cities that were able to adapt to changing economic conditions like Boston, new York, Seattle, San Francisco and Pittsburg (though Pittsburg only recently made those changes and the turnaround began only 10 years ago there)