Looking Back

From the William Davidson Digital Archive of Jewish Detroit History 

accessible at www.djnfoundation.org

62 | AUGUST 3 • 2023 

10 Years Post-Bankruptcy
W

e just had a rather infamous 
anniversary. Ten years ago, on 
July 18, 2013, Detroit became the 
largest city in American history to declare 
bankruptcy. 
Detroit’s bankruptcy was a long time 
coming. As early as 1982, Detroit Mayor 
Coleman Young stated that, if fiscal practices 
and demographic trends did not change, 
the city was on a path to 
bankruptcy. Detroit still had 
over 1 million citizens at the 
time.
In the 30 years following 
Mayor Young’s prediction, 
Detroit continued to shrink. 
From a peak of 1.8 million 
citizens in 1950, it is now 
630,000-640,000. Despite the loss of 
population and businesses, however, Detroit’s 
government spent well beyond its revenue 
and borrowed heavily to support services.
Leadership was also clearly lacking. Beyond 
poor decision-making, there was corruption, 
and one mayor, Kwame Kilpatrick, was forced 
to resign in 2008.
By July 18, 2013, the city had racked up $18 
million in debt that it could not pay. Michigan 
Gov. Rick Snyder’s appointed emergency 
manager, Kevin Orr, filed for bankruptcy. 
The case was handed to now-retired U.S. 
Bankruptcy Judge Stephen Rhodes. 
Whatever happens to the city of Detroit 
has a huge impact upon our region and state. 
Take for example, a great article by Keri Guten 
Cohen, “City on the Edge,
” in the William 
Davidson Digital Archive of Detroit Jewish 
History. It succinctly summarizes the situation 
at the time. 
Cohen asked five Jewish Detroiters — Jake 
Cohn, Harriet Saperstein, Jodee Fishman 
Raines, Zac Berlin and Sharon Luckerman 
— for their input on the bankruptcy and 
future of Detroit (Aug. 8, 2013, JN). One 
is impressed by their love of the city and, 
moreover, their well-founded optimism for 
Detroit’s future. This is just one of many good 
reads in the Archive about the bankruptcy.

Many Metro Detroiters worked to save 
Detroit. Two Jewish Detroiters played major 
roles in the city’s climb out of bankruptcy: 
Former U.S. Detroit 
District Federal Judge 
Gerald E. Rosen, who 
was appointed chief 
judicial mediator for 
the bankruptcy case, 
and legendary Detroit 
lawyer and booster, 
the late Eugene Driker. 
They worked tirelessly 
to develop partnerships 
with local people and 
organizations to solve the 
problem. 
Their leadership 
resulted in an innovative bankruptcy 
plan called the “Grand Bargain.
” The plan 
eliminated $7 million in debt, set a framework 
for a sound budgetary future and saved the 
Detroit Institute of Arts from a fire sale. 
Detroit was given a fiscal rebirth. It was, 
however, not without some cost for its citizens 
and the city’s reputation. Detroit pensioners, 
for example, took reductions in their 
retirement payments that they have yet to 
recover. But the physical infrastructure of the 
city improved dramatically — the lights are 
on — and Downtown Detroit is now thriving. 
In fact, long panned as a Rust-Belt relic, 
Detroit has seen its reputation as a destination 
city rebound during the past decade. 
Downtown, as well as areas like the “
Avenue 
of Fashion” on Livernois at Seven Mile Road, 
are thriving.
Ten years after the “Grand Bargain,
” 
Detroit’s rejuvenation is still a work in 
progress. There is still much to do. With 
hope for the future, like that of the five Jewish 
Detroiters in “City on the Edge,
” and hard 
work, like that of Rosen and Driker and so 
many others, Detroit is being remade in front 
of our eyes. 

Want to learn more? Go to the DJN archives, available 
for free at thejewishnews.com.

Mike Smith
Alene and 
Graham Landau 
Archivist Chair

