According to Larry Gatlin of the legendary country group the Gatlin Brothers, the definition of bankruptcy is: “When your outgo exceeds your income, your upkeep will be your downfall.” And boy, does Detroit fit that definition.
But the origins of Detroit’s bankruptcy are far from unique or exclusively Detroit’s fault.
And while Detroit’s corruption-ridden city government and unfunded pension-fund liabilities are the proximate cause of the Michigan city’s bankruptcy, the root causes are far deeper.
Detroit is the first of a number of triple witching events.
First of all, Motown is part of the American economy, which is experiencing the slowest recovery from the second worst recession/depression in the past century.
Read More at investors.com . By Arthur B. Laffer and Nicholas C. Drinkwater.
Photo credit: Bernt Rostad (Creative Commons)