In some ways, Detroit is a victim of its own succe...

In some ways, Detroit is a victim of its own success. Being on the Great Lakes, it was cheap to get iron and coal from the rest of the Midwest. Same for other raw materials too--just sail them up the St. Lawrence. Then cars got so popular that better road networks were built, and things started in a downward spiral.

Also, I think some of the blame can be laid on the pattern that the UAW followed. Squeeze the manufacturer that could least afford a slowdown or strike, then take that contract to the others. Also, each contract got more compensation, with barely any regard for poor economic conditions. Other unions took up this pattern of ever-better contracts as well. Management could afford the present costs, but underestimated future requirements. See Social Security, which was based on pre-Depression and Baby Boom reproduction and death rates for another example.

Poisonous politics divided the region at Eight Mile Road. The city blamed the suburbs for their troubles, and when you hear, "It's your fault, now give me resources," it's not surprising that the suburbs reject Wayne County.

There are lots of factors that contributed to Detroit's bankruptcy. Throw in betting the proverbial farm on the auto industry, disruptive competition from Japan and other parts of the US, and overly free credit, stir, toss in racial trouble, allow to simmer 40 years, and you get a debacle.