State to Take Control of Motor City
March 4, 2013
Michigan Governor Rick Snyder announced on March 1 that the state of Michigan is taking over the city of Detroit, the once mighty center of the U.S. auto industry. The takeover came in response to a report by a state review team that found that Detroit is heading towards financial collapse and recommends that an emergency manager be appointed to run the city. The state-appointed manager will have the power to cut spending, renegotiate contracts with labor unions, merge or eliminate city departments, and, if necessary, institute bankruptcy proceedings.
Detroit is the largest city in Michigan and was once one of the world's leading industrial centers. (Corbis)
The 2008-2009 recession and subsequent downturn of the auto industry pushed Detroit, which has for decades struggled with economic hardships, over the edge. It is billions of dollars in debt and currently has a budget deficit topping $300 million. Detroit, which in 1950 was the fourth largest city in the United States with a population of more than 1.8 million people, now has an estimated 700,000 residents. Large sections of the city are abandoned and in an advance state of decay.
Additional World Book articles:
- Automobile 2009 (a Back in Time article)
- Economics 2008 (a Back in Time article)
- Economics 2009 (a Back in Time article)
- Detroit 1990 (Back in Time article)
- The Big Three Roll Again (a special report)
- Economic Crisis: The Government Jumps In (a special report)
- Economic Crises – Then and Now (a special report)
