The Truth Behind The Detroit Bankruptcy


July 22, 2013 by Liberty

800px-Abandoned_Packard_Automobile_Factory_Detroit_200The city of Detroit has been drowning under the weight of its own regulations for over a decade and news of this bankruptcy shouldn’t come as a surprise to anyone that was paying attention to the situation. The city of Detroit has been pummeled economically and it’s been slowly disintegrating for years.

While the decline was inevitable, the worst of the damage has occurred within the last decade. The trouble in the National economy is largely responsible for this.

In the last decade, nearly a quarter of the population of Detroit has left. This is a city that was, at one time, one of the most populated cities in the world.

The unemployment rate is reported to be a staggering 18%. (That is using typical government reporting standards meaning it’s likely much higher.)

The number of homes abandoned in Detroit can hardly be kept track of. There are homes being sold for hundreds of dollars. On any home search website you can find homes listed for under $10,000. Banks are dying to eliminate the stocks of homes they have available.

Criminal activity statistics are staggering and over 90% of the crimes committed go unresolved. Cops have even stated that you need to “enter Detroit at your own risk.”

You may have heard some of these facts from other sources. You may have even heard worse facts. Despite all of this information, I wanted to impress upon you the truth of the situation.

Government Failure

The government in Detroit has promised some recovery for decades. The lifeblood of their city (the automakers) were slowly being crippled but the government in place but they insisted upon growth of projects despite mediocre public support. They stifled the economic productivity of new potential industries with their regulations trying to inflate the automakers bubble. The disasters occurring in the auto industry ultimately forced Detroit to completely give up.

All that was left is a mass of people that rely on the government for their livelihood. When people’s lives are on the line, violence and crime occurs. Survival becomes dependent on it. When government goes down completely, the economy is left with a mass of unskilled and desperate labor.

Government intervention is like shaking a bottle of Coke with the cover on. Looking at the bubbles on the top of the bottle can convince people the bottle is more full. The market is not predictable enough to get away with this long. The top will come off and when it does, their is going to be a mess.

That is the mess that’s requiring Detroit to declare bankruptcy.

Not The Whole Story

This is the kind of story that can lead to some Libertarian’s face palming and laughing about the idiocy of government. I have trouble looking at it this way. The smart money in that city has already left. The millionaires and billionaires that started this mess are out of the city. The vast majority of their fortunes are safe.

The people that are left did not have the luxury of this. They listened to the lies of government for years believing them. They were educated in massively under performing schools (nearly 50% functionally illiterate.) There is no reasonable way that they could have stopped this with how deep they were already in.

The poor are the ones left suffering with the consequences.

My time traveling allowed me to see a few cities that were bombed out, desecrated, and dangerous. I’ve never had the chance to see Detroit but in my experience, the worst of situations bring the best out of people.

While the worst individuals will commit disgusting acts, the best of people will be better than ever before. Some of the friendliest people come from some of the worst situations.

Don’t let the statistics convince you that Detroit is a wasteland because in all likelihood, it’s not.

I’m not saying to vacation there but the mainstream media has a tendency to distort the facts excessively to make a story that they like to tell. (Detroit is actually only #2 in murder rates in the United States of America.) They will not tell the story of government corruption and self-destruction. They will tell the story of the evils done by the people of Detroit.

Detroit is not a good place to be right now but don’t lose all hope. There are many good stories occurring their as well.

(Including private policing that’s making strides: CopBlock Tells The Story Here)

The minority is the murderers, the robbers, and the politicians. The majority are good hardworking people that deserve the chance to thrive in the marketplace.


2 thoughts on “The Truth Behind The Detroit Bankruptcy

  1. James Taylor says:

    It would help if you actually proof-read what you write. I like the content but sick of seeing the wrong ‘their/there/they’re’ and too many typos and easy errors. Fix them, its distracting!

    • Liberty says:

      I do appreciate the notification. I found the “their” I believe you were taking about.

      I agree that spelling errors are distracting. Many of these are articles that I spent way too little time editing and I am sorry I have mistakes in many of them. I’m currently setting some time aside to go through my older articles and fix my uber lazy editing days (I had no readers to catch them back then too.) (AND… Not that I’m a master editor today. I do make an effort though.)

      But anyway. Thank you.

Have something to say?

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow this blog and receive notifications of new posts by email.


Economic Collapse Investing News Philosophy Spreading The Message Relationships State Funded Radio Other

Help Support Libertarian Money

LM Bitcoin Address:

The survival of Libertarian Money depends on the support of its readers. There are two easy ways to show your support:

1. Donate to the bitcoin address above.
2. Find content that you love and share it!

Please show your support.

Enter your email address to follow this blog and receive free new posts by email.

%d bloggers like this: