Game over, Detroit - Class Struggle

TAPER: 80,000 buildings are abandoned and more than 250,000 people have dragged from the town the last thirteen years. Detroit is the largest city in the United States who have passed

Thursday it was clear that the U.S. city of Detroit turn himself bankrupt after having earned an estimated debt of over 18 billion dollars. Rick Snyder, who is governor of Michigan, has approved the bankruptcy.

Detroit is thus the largest city in the U.S. that have gone bankrupt so far, and it appears that federal authorities will not do anything to prevent it.

bankruptcy host final when a federal judge has approved it.

Kevyn Orr was employed in March to settle in Detroit’s debt problem, but after creditors refused to approve the restructuring plan Orr had left for the debt, he saw no way out than another bankruptcy.

– It is the only possible option, Orr said the U.S. media yesterday.

restructuring entailed, among other things, a proposal to force public employees to cut their pension and claim that those who had invested in municipal bonds should only be reimbursed broadcast 17 percent of what they had lent, according to CNN.

Collapse

Detroit has been in economic decline for almost 60 years and is the city that has had the heaviest burden by de-industrialization of the United States. The city was earlier for the main part of the automotive industry in the country.

Since 2000, more than 250,000 people leaving the city, and large tax revenues have been lost. In 1950, the population of around two million. Today it lies at around 700,000.

city also struggle with corruption, and lately has basic services authorities should provide their inhabitants worked poorly.

the highest crime rate among American big towns the average response time for police of almost an hour. The national average, eleven minute. In addition, nearly 80,000 buildings abandoned, and only 40 percent of the lighting in the streets works. Unemployment is situated on over 18 percent, according to the Washington Post.

Large Loss

creditors Detroit is expected to have major losses after the bankruptcy, and many of the city is its pension fund.

Future pensions and health activities for public employees may now hang in a thread.

trade unions are highly critical of Orr say, and a decision to turn the city bankrupt and believes the city should not be allowed to move from promises to its employees and pensioners.

– Bankruptcy Desire Inga is about to crush unions. I have constantly said that this is about to get more power. The failure is not to ensure the city’s finances, but is about the governor and his own agenda about to take over Detroit, says Ed McNeil, who led the negotiations for a coalition of 33 unions representing workers in the service sector, told Reuters.

long process

trade unions for public employees will fight against a bankruptcy. The fire department say unions stated to Reuters that they are “very disappointed”. The jobs together with other unions to find a solution to the city’s financial problem.

The local authorities claim bankruptcy may be a new start for Detroit, and they think the city should get rid of debt in order to restore the old glory.

But the bankruptcy process can be both lengthy and expensive.

– It can cost anywhere from tens of millions to hundreds of millions of dollars, says bankruptcy attorney Douglas Bernstein said.

Bernstein is expected that the trial will take one to three years.

Kevyn Orr has previously stated that he hopes that Detroit can get out of bankruptcy in less than a year, but the bankruptcy of a company with much less at stake has taken longer than the timeline Orr looks to lead.

The white house has said that they follow the situation closely, but shows no signs of preventing bankruptcy from going through, as President Gerald Ford did with New York in 1975.