How Detroit, the Motor City, turned into a ghost town

[TMMT]

How Detroit, the Motor City, turned into a ghost town

How Detroit, the Motor City, turned into a ghost town | World news | The Observer

Across the country lay-offs are continuing. Indeed, jobless rates are expected to rise for the rest of 2009 and perhaps beyond. Unemployment in America stands at 9.8%. But that headline figure, massaged by bureaucrats, does not include many categories of the jobless. Another, broader official measure, which includes those such as the long-term jobless who have given up job-seeking and workers who can only find piecemeal part-time work, tells another story. That figure stands at 17%.

Decades of white flight, coupled with the collapse of its manufacturing base, especially in its world-famous auto industry, have brought the city to its knees. Half a century ago it was still dubbed the "arsenal of democracy" and boasted almost two million citizens, making it the fourth-largest in America. Now that number has shrunk to 900,000.

The city has a shocking jobless rate of 29%. The average house price in Detroit is only $7,500, with many homes available for only a few hundred dollars. Not that anyone is buying. At a recent auction of 9,000 confiscated city houses, only a fifth found buyers.

[TNTitan]

This says it all:

Map of population change in US states between July, 2007 and July, 2008.

List of U.S. states and territories by population

[Sheepdog]

Detroit's only hope is to turn its administrative services over to Omni Consumer Products.

[Champ198]

Detroit's only hope is to turn its administrative services over to Omni Consumer Products.

Agreed!!!

[TripleDigitRide]

I'm pretty sure this is the same thing Michael Moore reported 20-years-ago when Roger & Me came out in 1989. It's difficult for me to be surprised now.

[DaveTN]

coupled with the collapse of its manufacturing base, especially in its world-famous auto industry, have brought the city to its knees.

Our entire economy will follow if we do not recover our manufacturing base. There is no way around this.

[Guest mikedwood]

Our entire economy will follow if we do not recover our manufacturing base. There is no way around this.

What? You mean we can't mow each others yards, eat out every night letting others serve us food, and pay others to wash our cars all the while buying most of our goods from China and other far off places?

I don't get it! It seems like a perfect system to me.

[Guest 1817ak47]

Our entire economy will follow if we do not recover our manufacturing base. There is no way around this.

X2 very true and there is no BS excuse around this. though some rich business owners will try to argue that this has no effect, but they are self minded and making hand over fist profits while it decays america, it's economy, and prevents it's own citizens from being able to support themselves.

[wjh2657]

Detroit is dying because of greed and stupidity.

American manufacturers sent jobs and wages overseas and then expected local people to still have money to buy their products.

Two major auto anufacturers went for stock dividends and CEO bonuses instead of for the auto market. (Ford is making money!)

Unions were convinced that all laborers should have two houses and their kids should drive sports cars by the time they were 16. (And they priced their wages to match) This was while the rest of the country, their market, was making less than 1/2 of their pay.

They made gas guzzlers that were way overpriced and too expensive to operate and maintain while their competitors made economical cars. (Gas prices didn't go up, they caught up. When the numerous subsidies and artificial market restrictions were dropped, gas prices sought their natural level.)

Neither political party doomed Detroit. Detroit shot themselves in the foot, several times over!

[Guest 1817ak47]

Detroit is dying because of greed and stupidity.

very true

American manufacturers sent jobs and wages overseas and then expected local people to still have money to buy their products.

again very true, but this isn't just limited to the auto industry, if this doesn't stop and get reduced, then we will continue to have problems, I am not saying eliminate it though.

Neither political party doomed Detroit. Detroit shot themselves in the foot, several times over!

as far as detroit is concerned, that is a 100% true statement. they sold cars ill suited for the market and now this happened to the auto industry

[Guest 1817ak47]

Unions were convinced that all laborers should have two houses and their kids should drive sports cars by the time they were 16. (And they priced their wages to match) This was while the rest of the country, their market, was making less than 1/2 of their pay.

this is all to true, they expect to make to much while doing to little. I am all for a fair wage but they take it to far. this added cost just gets added to the consumer and as a result they pay more and get less in the end.

They made gas guzzlers that were way overpriced and too expensive to operate and maintain while their competitors made economical cars. (Gas prices didn't go up, they caught up. When the numerous subsidies and artificial market restrictions were dropped, gas prices sought their natural level.)

the only real fuel efficient cars sold in the us were from the Japanese, and I am talking about non hybrid cars. I hated putting the gas in my old v8 cars that got like 12 or less mpg, and gas was less that $1 gallon then:rolleyes:

[Guest blairellis]

Well subtract one more from Michigans population come Saturday. I'm moving to TN

[wjh2657]

Well subtract one more from Michigans population come Saturday. I'm moving to TN

Welcome to the state of the free!

[Smith]

They sent jobs oversees because of taxes and union. Not greed and evil intentions. If I recall correctly, it similar to how the US got started.

On a side note, manufactoring is not gone nor dying. It has changed, but we still make a lot a stuff here in the US. More than we import BTW. Not the same stuff we used to make, but again that goes back to taxes and unions.

Manufactoring will never be like it was before the fall of communism. Things have changed and it is truly a global market now.

[wjh2657]

They sent jobs oversees because of taxes and union. Not greed and evil intentions. If I recall correctly, it similar to how the US got started.

On a side note, manufactoring is not gone nor dying. It has changed, but we still make a lot a stuff here in the US. More than we import BTW. Not the same stuff we used to make, but again that goes back to taxes and unions.

Manufactoring will never be like it was before the fall of communism. Things have changed and it is truly a global market now.

I agree on all points except first. the major Auto manufacturers were not paying taxes or little at best. They had many, many tax breaks. The unions were a source of unreasonable wages, I agree, but there was still a lot of big corporate profit driven greed involved.

The rest of your post is correct. You are dead on that all industry is going to have to learn how to compete in a global market..

American Industry will identify the markets and will produce the product that sells. It is who we are, it is what we do.

The main point of this thread was that Detroit, meaning the Michigan based auto industry was dying. That is still true. American manufacturing, including auto manufacuring, will now shift more into other states and communities with newer and different products.

[Smith]

I agree on all points except first. the major Auto manufacturers were not paying taxes or little at best. They had many, many tax breaks. The unions were a source of unreasonable wages, I agree, but there was still a lot of big corporate profit driven greed involved.

The rest of your post is correct. You are dead on that all industry is going to have to learn how to compete in a global market..

American Industry will identify the markets and will produce the product that sells. It is who we are, it is what we do.

The main point of this thread was that Detroit, meaning the Michigan based auto industry was dying. That is still true. American manufacturing, including auto manufacuring, will now shift more into other states and communities with newer and different products.

When I say taxes I'm talking mostly about Cafe standards and the like. True they were not paying traditional taxes but they were paying out the wazzu on government standards, regulations, etc.

Here is an interesting read.

http://www.uschina.org/public/documents/2006/09/us-manufacturing.pdf