Detroit’s population was over 1.8 million residents in 1950, and it held the fifth spot on the list of America’s most populous cities. That was the peak of the city’s population. In fact its population has seen a decline in every census thereafter. Detroit lost over half of its population in the past 50 years and has struggled to readjust its municipal structure to handle the ongoing exodus.

Over 200,000 people left Detroit from 2000 to 2013. Records for 2013 show that the population of the city has since dwindled to just over 700,000. The US Census shows people are moving from the city’s proper limits into the suburbs. Far less revenue from taxes has resulted as individual and business monies were redirected to surrounding municipalities. This trend started after 1950, as the auto industry expanded its operations to outside Detroit and even overseas. The industry wanted to distance itself from the cities powerful unions but other reasons included sending individuals and their taxable revenue to the suburbs. Racial tensions within the city were principal among the reasons many white and more affluent people left the city for the suburbs. Detroit experienced large and violent race riots in the age of desegregation. Other Midwest cities have also experienced similar declines, giving rise to the term Rust Belt. However, Detroit’s population decline is unique. Other cities were able to rally around new industries when their key economic engines ran out of gas. For example, the steel city of Pittsburgh reorganized as a center of healthcare and education.

Forty-seven percent of the city’s taxable properties are delinquent. This resulted in a loss of 131 million dollars of revenue in 2012, which is equal to twelve percent of Detroit’s general fund. Coupled with tax-exempt land, only 41 percent of Detroit’s properties paid taxes in 2012.

Michigan states the problem on its government website, “the city overestimated its revenue, spent more than it takes in, [and] borrowed money to pay off its debt.” The scope of the debt is very large and continues to grow. Detroit owes 18 billion dollars to over 100,000 creditors. The result is a lack of city services and an inability to negotiate with creditors. Rows of streetlights are left off in certain parts of the city. Due to sparse population density of some neighborhoods police are spread thin resulting in slower response times.

The financial crisis alone has cost the city money. Detroit has racked up 19.1 million dollars solely in debt spent on private firms to weed it through the mess. It pays UBS and Bank of America fifty million dollars each year to reduce some its debt, that amount constitutes five percent of its annual budget. Detroit filed for Chapter 9 bankruptcy in July of 2013.