Case Study : Detroit 's Death Spiral

1479 WordsOct 10, 20166 Pages
Case Study: Detroit’s Death Spiral Introduction On July 18, 2013, Detroit filed Chapter 9 bankruptcy and make it become the largest municipal bankruptcy in United States history. The center of the automobile industry in the United States currently famous with the stereotype as ‘the ghost city’ – the worst city in the state where people don’t want to come with $ 18 billion debt. There are three main factors behind Detroit bankruptcy, they lost their revenue sources, they spend too much, and the government failure. The following below is the explanations of these three factors. 1. A Decline in Population – Bad Urban Planning and Racial Issues. In the early twentieth century, Detroit developed as the center of the automobile industry so it attracted a lot of people to come to find jobs in the city. As a result, on that time, Detroit’s population growth and reached the peak in 1970 with the total population of 1.8 million people. After that year, within six decades, the number of population decreases constantly by percentage of almost 60%. Finally, in 2013, Detroit total population was only 688,700 people. Detroit City Population from 1920 -2010 The decline in total population in Detroit City was caused by several reasons, such as mass movements to suburban areas in 1950s and racial tension causing an urban riot in the 1960s. The more city growth, the more people comes, the more people develop and offer something new, and it was including new area of housing. Housing
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