Detroit
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Economic Troubles
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.?