Retire Smart: Lessons from Detroit
By Jill Schlesinger
Tribune Media Services
On July 18, Detroit filed for Chapter 9 federal bankruptcy protection. At over $18 billion in liabilities, it is the country’s largest-ever municipal bankruptcy case. Although there have been rampant accusations of financial mismanagement and scapegoating, the main culprit for Detroit’s woes was demographic: The city’s population, which peaked at 1.8 million in the 1950s, now stands at 700,000 after many middle-class workers and businesses fled the city, taking their tax dollars with them.