Today in class we watched a documentary about the current financial situation in Detroit and why things are the way they are in Detroit.

 

”Why is General Motors walking away with billions while Detroit dies?

 

General motors is walking away with all the money that they have because they were specifically bailed out by the government. The city as a whole was not. The most important thing about the city was the American auto industry there and not the people of Detroit. Frankly, I think that the automotive industry there was the only thing good about it in the eyes of the government. Of course, bailing them out wasn’t the best choice as we see that the city still isn’t out of debt.

 

“What is next for the Motor City (Detroit)?”

 

The next thing for Detroit is to either slowly die out completely, or find another outlet to come back with. It’s pretty clear that the automotive industry won’t save them, that moment in time where the city thrived off of that is long gone. I’m not a financial expert nor have I ever lived in Detroit, but my prediction is that it will continue to decline. But then again, the suffering in Detroit also breeds creation so you never know what could happen.