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Friday, July 19, 2013

Detroit's Bankruptcy Signals a Failure in Disability Compensation Programs in the US

The bankruptcy of the city of Detroit reflects not only an economic and social tragedy for America, but it also marks a failure of basic disability and compensation programs for the US workers. It is a sentinel event marking the end of a booming industrial era for the US, and its disability and retirement programs, and demonstrates the consequences of a benefit scheme built on empty promises for injured workers.

"Once the very symbol of American industrial might, Detroit became the biggest U.S. city to file for

bankruptcy Thursday, its finances ravaged and its neighborhoods hollowed out by a long, slow decline in population and auto manufacturing.

"The filing, which had been feared for months, put the city on an uncertain course that could mean laying off municipal employees, selling off assets, raising fees and scaling back basic services such as trash collection and snow plowing, which have already been slashed.