As most of you have probably already heard, the City of Detroit has declared bankruptcy. Many people thinks that this means Detroit is like Greece. And there are indeed strong similarities, both Detroit and Greece have had a habit of constantly spending more than it earned, which is very risky for political enitities in monetary unions as they can't pay off their debts by printing money. And now because of that Detroit goes bankrupt, as Greece has already in effect done when it got that debt writedown.
Detroit also has a very high unemployment rate at 16%, twice the U.S. national average though about 10 percentage points lower than Greece. On the other hand, Detroits is far worse than Greece when it comes to crime. Even though Detroit has only 700,000 inhabitants, it had 386 homicides last year, more than twice as many as in Greece whose population is 15 times larger than Detroit's. The murder rate in Detroit was in other words more than 30 times higher than in Greece. Needless to say, this high rate of violent crime scare away many businesses from Detroit.
One aspect that can be noted is that Detroit is an extreme bastion for the Democrats . In the general election
when current mayor, Democrat Dave Bing was elected, the other candidate was another Democrat, Tom Barrow. That's right, Democrats dominate so completely that the general election is in effect a Democratic primary election.