There is a widely-repeated right-wing claim that Detroit's economic problems and subsequent bankruptcy were due to excessive spending on social programs; this is false.
Detroit was heavily dependent on its automobile manufacturing industry, which largely grew up there. When management styles changed starting in the 1980s to a more aggressively profit-driven mode, the companies began moving jobs from Detroit to other locations -- decimating Detroit's economy.
Even worse, the remaining large businesses then threatened to leave as well if Detroit didn't give them steep tax breaks, further eroding its revenue.?
- Conservapedia "...due to mismanagement, became so beholden to liberal interests that industry failed, for the most part."
- dKosopedia (site down on 2014-03-20; can't verify page)
- GooBing Detroit: Google Street View pictures of Detroit neighborhood from 2009-2012, showing the transition from habitation to ruin
- 2014-03-20 Michigan Short-Changed Detroit By Millions "Instead of sharing sales tax revenue properly, Michigan kept millions intended for Detroit, effectively bankrupting the city."
- 2013-12-09 How Wall Street Bankrupted Detroit (video: RT interview with Richard Wolff)
- 2013-07-21 Detroit Sinks Deeper Into Hell As It Faces Right Wing Utopian Fantasies