The city of Detroit's skyline is shown July 18, 2013. [Xinhua photo]

When tax collections were unable to match cash outflows, the city found it convenient to borrow to cover the shortfalls. Lenders seemed more than willing to lend money to a city whose past glory went unquestioned. But this was not the only phenomena that soured Detroit's finances. Many elected city government officials were corrupt and many bad investment decisions were made with regard to the pensions and healthcare programs. The truth is that the people who elected and accepted these leaders share some of the blame for the current situation for not holding many individuals accountable for their actions at the time. It is apparent that no one was prepared to do the right thing when decisions were required. Pension funds went "unfunded" and shrinking city demographics (from 1.8 million people in 1950 to 700,000 people now) were either ignored or dismissed. Fiscal responsibility was absent for decades and no one seemed to care or have the political and/or moral clout to correct it.

As a result, we now have the biggest Chapter 9 municipal bankruptcy petition in U.S. history. Is it unfair if city worker pensions are slashed? Is it a pity if Detroit municipal bond owners receive pennies on the dollar? Is it a tragedy if the Detroit public school system provides grossly inadequate education for the city's remaining children? Of course the answer to all of these questions is "yes!" But, as Kevyn Orr, Detroit's state-appointed emergency manager, has indicated many times, you can say what you want about Detroit's past; but the money is simply not there – it is gone.

The author is a columnist with China.org.cn. For more information please visit:

http://m.shenbo75.com/opinion/tylorclaggett.htm

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