Wednesday, October 23, 2013
Experts, consumers differ on impact of Detroit’s bankruptcy
This week, DBusiness Daily News, an independently published, general-interest business news outlet for the region, highlighted results from the Oakland University's Southeastern Michigan Economic Outlook Policy Forum report.
The project is headed by Oakland University economists and professors Drs. Jonathan Silberman and Ron Tracy.
An excerpt from the article by Izzi Bendall:
Economists are more positive than the average consumer about the economic impact on Detroit if it goes through a planned bankruptcy, according to a report released by Oakland University.
In the first policy report from Oakland University’s Southeastern Michigan Economic Outlook, participants were asked whether they disagreed or agreed with the statement, “The city of Detroit bankruptcy will advance the economic vitality of southeastern Michigan.”
“I think the economists (and business executives) have a much broader perspective about understanding the impact of the bankruptcy on retaining businesses (and) attracting businesses,” says Jonathan Silberman, professor of economics at Oakland University in Rochester Hills. “The bankruptcy process — even in business — provides renewal and a chance to more effectively use resources for growth.”
While it wasn’t included in the final report, Silberman says it was interesting to see that the consumers who live in Detroit had a much more positive view of the bankruptcy than those who don’t. “They experience the hardship of (living in Detroit), and I interpret this as they see the bankruptcy as a chance for the city to improve,” Silberman says.
Read the full story on DBusiness here
Read the Policy Forum report and view other Southeastern Michigan Economic Outlook reports here.