We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Detroit Economic Bailout - Essay Example

Comments (0)
Summary
Detroit Economic Bailout The management of debt at city level can be evaluated, as of its effectiveness, using different criteria. The use of microeconomic variables is a common practice in order to understand whether the strategic choices of city governors are fully justified or not…
Download full paper
GRAB THE BEST PAPER
Detroit Economic Bailout
Read TextPreview

Extract of sample
Detroit Economic Bailout

Download file to see previous pages... Microeconomics has been described as the scientific field focusing on the ‘behavior of individual households and markets’ (Saunders and Gilliard 18); emphasis is given on ‘the criteria used for defining the level of prices and for allocating resources’ (Saunders and Gilliard 18). Microeconomic variables have a critical characteristic: they refer to economy as related to the level of households and not to the level of a region (Dow and Hillard 6). At the level of households the performance of economy can be evaluated through variables such as consumer spending, prices and wages (Dow and Hillard 7). These variables will be used below in order to justify the potential positive effects of bailout on the daily life of people in Detroit. Certain microeconomic concepts will be also used, as appropriate, for making clear the relationship between economic decisions and economic performance at household’s level. The decision of Detroit’s governors to ask for a Federal bailout has faced strong criticism. The success of a similar plan used for the city’s two major auto companies, Chrysler and General Motors (Maynard 2013) is often used for justifying the necessity of Detroit’s bailout. ...
At a first level, an aid of $300m has been decided to be granted to Detroit (Isidore 2013). This sum of money will not be used for paying part of the city’s debt, which is estimated to $18-$20 billion (Isidore 2013, Proctor 2012); about $150m of the total aid to Detroit will be given as a program for ‘refurbishing/ cleaning abandoned properties’ (Isidore 2013) and about $140m for the improvement of the city’s transportation system (Isidore 2013). Other programs referring to indirect benefits for the city, such as the hiring of public servants, have been also approved aiming to help the city to recover (Isidore 2013). So far, the Congress has been opposed to the provision of financial aid to Detroit on the basis that such claims could be set by other cities (National Report 2013). President Obama has decided to bypass Congress and proceed to the financial support of Detroit so that the expansion of the crisis is controlled (National Report 2013). The value of the bailout of Detroit can be understood by presenting the statistics related to the city’s economic performance at household level. In 2009 the average household income in Detroit has been declined by a percentage of about 92% compared to 2000 (Figure 1). Detroit, Michigan: -92.2% Michigan: -98.8% Figure 1 - Median Household income in Detroit and in Michigan in general, from 2000 to 2009 (Source: City Data) The scheme for the bailout of Detroit could enhance the city’s average household income in the following way: by increasing the public servants working across the city households across Detroit could be given an important financial relief, a fact that would lead to the ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Reimagining Detroit by John Gallagher
The report reveals that Detroit lost more than a quarter of its population. In his book, Reimaging Detroit: Opportunities for Redefining an American City (2010), John Gallagher notes that even though shrinking cities like Detroit are facing devastating challenges, they also have the space and chance of becoming more conducive and greener.
10 Pages(2500 words)Essay
AIG Bailout and AIG Bailout Exit Plan
-- one of the world's biggest insurers -- in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system.” (Krnitschnig, 2008) If the bailed was denied, the repercussions would have been much higher and larger than what was caused by the fall of Lehman Brothers.
2 Pages(500 words)Essay
Detroit and Cleveland
One of the urban structures that have been disregarded for decades despite many debates is the railway system that made places like Detroit and Cleveland suffer not only with the transport of its people but most especially with the decline of its economic growth.
3 Pages(750 words)Essay
The actual economic bailout of Wall Street and the individual homeowner bailout by Jeffrey Fu
A rash of defaults coupled with foreclosures hit homeowners, and it started with subprime loans due to credit crisis. The low-interest rates and the common perception of home ownership as a safe way to invest in the beginning of this millennium made many home owners to run to this type of investment.
4 Pages(1000 words)Essay
Detroit Bankruptcy
The proceeding provides protection to financially distressed municipalities from creditors through the creation of a financial plan aimed at settling the debt. The purpose of the filing was to extend the loan terms while maintaining a lid on the interest rates.
5 Pages(1250 words)Essay
Techno Music in Detroit
Though, Detroit had a larger African American population, the chcago area, which had segregated black neighbourhoods, produced DJs who had their own individualistic styles.
4 Pages(1000 words)Essay
Public money and bailout
Under what conditions would multi-billion-dollar bailouts of private businesses be acceptable' What are the criteria you'd use' All these are terrific question with no obvious answers. "As always, job protection is being cited as the primary rationale for the bailouts." (Cronin, 2009) In a world where the number of unemployed people goes on increasing day by day, the governments try to justify their action in terms of the unemployment problem.
8 Pages(2000 words)Essay
Federal Bailout
ccounts, the United States economy was entering into a period of very low economic performance that would translate into, among other things, considerably high unemployment numbers. At any point in time where more individuals find themselves out of work, that in turn, creates
6 Pages(1500 words)Research Paper
Comparison of Detroit and Cleveland
Once considered as a suburb, the city is now left to old technology when placed in juxtaposition with other cities that were once rural. The tile has been turned and
3 Pages(750 words)Essay
1989 Detroit Free Press Profits
The oligopoly market results when a few numbers of firms control the market. Mostly, these types of market experience a high level of competition from the other firm.
2 Pages(500 words)Essay
Let us find you another Essay on topic Detroit Economic Bailout for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us