Detroit, Michigan, USA…At one time, it was a world center of industry, a shining (if somewhat polluted) jewel of American capitalism. Like many industrial cities in the US, Detroit had seen economic decline and middle-class flight since the 1970’s. When Rick Snyder became governor of Michigan in 2012, his first budget was an austerity budget, eliminating tax exemptions on higher income pensions, while at the same time replacing the state’s complex business tax with a significantly reduced flat tax on the profits of C corporations. He signed a bill into law that gave state-appointed “emergency managers” of various cities increased powers (including the ability to recommend to the governor and state treasurer that the government enter Chapter 9 bankruptcy) essentially eliminating democracy and home rule in many Michigan cities, including Detroit. He also signed so-called “right-to-work” legislation. In March, he appointed Kevyn Orr as emergency manager for the City of Detroit; it was at his recommendation and and with the approval of governor Rick Snyder that Detroit filed for bankruptcy on July 18, 2013.