Detroit is the largest city in the state of Michigan in the United States. Thanks to its excellent location on the Detroit River, a strait that connects the Great Lakes system, manufacturing brought prosperity to the city. Detroit´s wealth came mainly from auto manufacturing which gave the city nicknames like Motown or Motor City. Despite the fact that it was one of the world´s greatest industrial centres in the 1950s, it is now considered to be America´s most dysfunctional city. With debt estimated at $18-20 billion, the city of Detroit filed for Chapter 9 bankruptcy on July 18, 2013. It is the largest municipal bankruptcy filing in U.S. history.
The present bachelor thesis is focused on the bankruptcy of Detroit and the city´s …show more content…
It is necessary to comprehend some of the historical circumstances to understand the whole issue. Detroit´s dependence on the automobile industry could seem to be the core of the city’s problems. However, there are many other aspects which cannot be omitted. For many years, the city has been dealing with bad leadership and racial unrest, which has its share on the gradual depopulation of the city.
1) Dependence on Automobile Industry
Majority of the city’s decline can be traced to its high reliance on the automobile industry. Thanks to easy access to iron resources and good railroad transportation, Detroit is one of the cities around the Great Lakes where manufacturing brought prosperity. Automobile manufacturing was the main economic income of Detroit. The first prosperous wave came after World War I and in the 1950s the auto industry was booming. In the early 20th century most Detroiters depended on auto manufacturing. The three main auto manufacturers, General Motors, Ford and Chrysler, employed most of Detroit´s population as thousands of African Americans moved from the South to Detroit for jobs on the assembly line. Due to this, Detroit´s population rose to more than 1.8 million inhabitants, which made Detroit the fifth-largest …show more content…
In the article “Autopia´s End: The Decline and Fall of Detroit´s Automotive Manufacturing Landscape” Ryan and Campo state that “During the 1970s, the city lost more than 300,000 people, and its 1980 population of 1.2 million was 35 per cent lower than its 1950 peak of 1.85 million (by 2010, the city had lost another 450,000 people, lowering its total to 713,777). Detroit´s population decline was strongly linked to its decline in manufacturing jobs; almost half of these losses occurred after 1977” (p. 4). In other words in the last 60 years Detroit´s population has declined from 1.85 million to 713,777 inhabitants, which is more than one million inhabitants less than in the year