Economic Report - Detroit Files for Bankruptcy

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Mayor Dave Bing had to report some bad news recently. He Detroit was seeking bankruptcy protection. The move would give the city protection from creditors. The decision to declare bankruptcy is an effort restructure and reduce debt. It comes at a difficult time for . In March, Michigan Governor Rick Snyder named Kevyn Orr, a bankruptcy , to oversee the city's financial problems. Detroit has been struggling to a budget deficit of more than $300 million. In addition, the long-term debt has increased to at least $18 billion.

Detroit's problems grown over many years. Michigan State University professor Eric Scorsone says city depended too much on one industry: automobile manufacturing. Jobs with makers were a big reason why Detroit was one of the largest cities half a century ago. In the 1950s, it had population of about 1.8 million people. Today the number is down less than 800,000. Robin Boyle is a professor of urban planning Wayne State University. He says, over the years, many Detroit residents to areas outside the city or even left the state. That Detroit's ability to invest in itself. It is rare for a American city of seek bankruptcy protection. In 1975, New York City close before the federal government agreed to provide money. Detroit, however, the largest city to seek bankruptcy.

Now, a federal judge is consider Detroit's request. One of the main issues is what to about the retirement pay of city workers. Currently, there are many retired workers than those paying into the pension system. For VOA English, I'm Alex Villarreal.

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