Tuesday, August 16

Bankruptcy Proceedings in NJ and Detroit Are Evidence of Continued Economic Failure

Bankruptcy has held a significant, and certainly unfortunate, place in the American economy in recent years. It has affected private homes and large companies alike. And it doesn’t seem to be lessening up any time soon.

Atlantic City’s Revel casino and resort recently filed for its second bankruptcy since its opening in 2012. The casino is staying open and for the time being and appears to have confidence that a court-supervised auctioning of its assets will allow it to remain open. But its future didn’t look so bright a few days ago when over 3,000 employees were warned that the casino could permanently shut down as early as August if a viable solution was not found. For these thousands of hotel employees, and hundreds others employed at food and drink companies with whom the casino has partnerships, Revel’s constant instability is hardly a good sign.

In another area greatly affected by economic failure, the residents in and around the city of Detroit– arguably the one American city hit hardest by the failing economy– are still struggling as the city works through bankruptcy proceedings. Thousands of people employed by the city are being subjected to yet another cut in pension and health care benefits.

How Does This Affect the Rest of Us?
While the majority of financial destruction created by struggling corporations is most evident in and around the cities where the businesses are physically located, it’s important to remember that big corporations employ people, or are heavily involved with other businesses, all over the country. The possible closing of a huge casino like Revel would not only affect the residents of New Jersey. And by looking at the issues still plaguing Detroit, it is clear that the failure of a major corporation can and will affect its employees for years.

Private citizens often feel very powerless when caught in the financial problems of big corporations, and at times it definitely seems like the government cares more about the success of big business than it does about the welfare of its citizens. It is times like these that Americans have to support one another and stay aware that bankruptcy is a serious issue which can affect anyone at any time.

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