Cookies are Not Accepted - New York Times “The auto industry supports one of every 10 jobs in the United States,” Gov. Jennifer M. Granholm of Michigan wrote in a CNN.com plea for a bailout of Detroit’s Big Three. That’s a scary figure. Detroit Race Riot (1967) The Intersection of 12th Street and Clairmount, Saturday, July 23, 1967 Image Courtesy of the Detroit Free Press Image Ownership: Public Domain The Detroit Race Riot in Detroit, Michigan in the summer of 1967 was one of the most violent urban revolts in the 20th century. On Sunday evening, July 23, the Detroit Police Vice Squad officers raided an after hours “blind pig,” an unlicensed bar on the corner of 12th Street and Clairmount Avenue in the center of the city’s oldest and poorest black neighborhood. At 5:20 a.m. additional police officers were sent to 12th Street to stop the growing violence. Around 1:00 p.m. police officers began to report injuries from stones, bottles, and other objects that were thrown at them. At 5:30 p.m., twelve hours into the riot, Mayor Cavanaugh requested that the National Guard be brought into Detroit to stop the violence. At 11:00 p.m. a 45-year-old white man was seen looting a store and was shot by the store owner. At 2:00 a.m. Sources:Allen D.
The Detroit Bankruptcy The Detroit Bankruptcy The City of Detroit’s bankruptcy was driven by a severe decline in revenues (and, importantly, not an increase in obligations to fund pensions). Depopulation and long-term unemployment caused Detroit’s property and income tax revenues to plummet. The state of Michigan exacerbated the problems by slashing revenue it shared with the city. The city’s overall expenses have declined over the last five years, although its financial expenses have increased. The Shortfall Detroit’s emergency manager, Kevyn Orr, asserts that the city is bankrupt because it has $18 billion in long-term debt. Cash flow crisis. In a corporate bankruptcy, the judge takes stock of a company’s total assets and liabilities because the company can be liquidated and all its assets sold to pay down its debts. This means that Detroit is bankrupt not because of its outstanding debt, but because it is no longer bringing in enough revenue to cover its immediate expenses. Total outstanding debt. Revenue
Detroit Has Worst High-School Graduation Rate A new Detroit: Can the Motor City come back? ONE of this week's big American news stories was the release of new Census data for the state of Michigan, which revealed that the city of Detroit underwent a stunning population decline between 2000 and 2010. Detroit shrank by 25% during the decade, and its population fell to its lowest level since 1910—before the era of Big Three dominance. The city seems to be locked in a death spiral. But could there be a light on the horizon? Bloomberg reports: Auto industry executives are trying to make Silicon Valley engineers feel at home in Detroit. Indeed, tech employment has been rising quickly in Detroit. Well, there are a few points to make. I think it's a little disconcerting that so much of the hiring seems to be driven by carmakers. This is one place where Detroit is at a significant disadvantage thanks to the condition of its broader economy. On the other hand, Detroit's ridiculously low costs are an advantage: Sure, Detroit salaries are 40% lower than Silicon Valley pay.
Detroit pays high price for arson onslaught Detroit — Arson is a raging epidemic in Detroit, destroying neighborhoods and lives as the city tries to emerge from bankruptcy. Even amid a historic demolition blitz, buildings burn faster than Detroit can raze them. Last year, the city had 3,839 suspicious fires and demolished 3,500 buildings, according to city records analyzed by The Detroit News. Burned homes scar neighborhoods for years: Two-thirds of those that caught fire from 2010-13 are still standing, records show. "Nothing burns like Detroit," said Lt. Joe Crandall, a Detroit Fire Department arson investigator, referring to the city's high rate of arson. The Detroit News researched arson for more than three months and found that it remains a huge obstacle to renewal efforts following bankruptcy. Few neighborhoods were untouched by arson and the entire city bears its costs. "People don't realize arson is a felony. Arson Chief Charles Simms said the city is making progress in its long struggle with arson. 'Arson is like a cancer'
Detroit at the White House: Trump meets with Big Three auto CEOs - Jan. 23, 2017 In opening remarks to the press, Trump claimed he was already "bringing manufacturing back to the United States big league." He didn't talk about his threats to impose tariffs and border taxes on goods brought in from Mexico. Instead, he talked about incentives that would get automakers to build here, such as reduced corporate tax rates. The CEOs stayed at the meeting about an hour. "As an industry we're excited about working together with the president and his administration on tax policies, on regulation and on trade to really create a renaissance in American manufacturing," he said. He specifically praised Trump's decision to pull out of the TPP trade deal, which Fields said did not do enough to address currency manipulation, a major concern for U.S. automakers. But the auto industry is concerned about Trump's threat to impose a 35% tax on imports from Mexico to the United States. Before the meeting started, Trump said in a tweet that he was focused on boosting manufacturing.
The Downfall of Detroit: White Flight and the 1967 Race Riots | husseinbazzi The 1967 Detroit riot, also known as the 12th Street riot, was a civil disturbance in Detroit, Michigan that began in the early morning hours of Sunday, July 23, 1967. The precipitating event was a police raid of an unlicensed, after-hours bar then known as a blind pig, on the corner of 12th (today Rosa Parks Boulevard) and Clairmount streets on the city’s Near West Side. Police confrontations with patrons and observers on the street evolved into one of the deadliest and most destructive riots in United States history, lasting five days and surpassing the violence and property destruction of Detroit’s 1943 race riot, which occurred 24 years earlier. To help end the disturbance, Governor George Romney ordered the Michigan National Guard into Detroit, and President Lyndon B. Johnson sent in Army troops. The result was 43 dead, 467 injured, over 7,200 arrests, and more than 2,000 buildings destroyed (Rutgers.edu). Works Cited Feagin, Joe R.. Like this: Like Loading...
Bailout debate: How the Big 3 came apart and how to fix them - Nov. 17, 2008 NEW YORK (CNNMoney.com) -- Why is the U.S. auto industry in such a precarious position? That question - and answers to it - will animate the debate this week over whether Washington should extend a lifeline to the Big Three. (For more, read Auto bailout: Showdown in Washington.) There are extreme answers at both ends. Some observers cite labor contracts that prevent layoffs and guarantee high-cost health care coverage that can continue for decades after workers leave the company. Others say the companies are the victims of executives who over produced gas-guzzling SUVs and pickups and ignored the fuel-saving technologies of their Japanese rivals. Either way, it's easy to see why so many people are troubled at the prospect of rewarding the automakers' management and workers with billions of taxpayer dollars. Why they are in this mess Years of market share losses by the Big Three are a major part of the problem. For years, pickups and SUVs brought strong sales and high profit margins.
Detroit population drops again but loss is slowing | Detroit Sun Times American households are making more money today than they did three decades ago—in some places, a lot more. In order to find out which places have seen the greatest increase in household income, we turned to the National Historical Geographic Information System (NHGIS), which uses historical reports from the decennial Census and the American Community Survey to track median income over time. Research site MooseRoots then adjusted all the data to 2015 dollars to filter out the effects of inflation. On the whole, households in northeastern states have seen the largest income increase since 1980, with New Hampshire, Massachusetts and Vermont ranking among the top five. South Dakota and the District of Columbia round out the top list. Only a handful of states have seen median household incomes actually decrease since 1980—and several of them are in the Midwest. Unfortunately, this picture of economic prosperity gets a lot less rosy the more you look at extra caveats and context. 5. 4. 3. 2.
How Detroit Went Bottom-Up In the spring of 2005, David Stockman at last reaped the reward of the monopolist. Stockman, who once served as Ronald Reagan's budget director, spent two decades on Wall Street preparing for this moment. After stints at Salomon Brothers and the Blackstone Group, Stockman in 1999 set up his own private investment fund, Heartland Industrial Partners. He then used Heartland to shape a set of companies -- mainly in the automotive sector -- each dedicated to dominating a particular group of production activities. Of all Stockman's efforts, his most audacious centered on a firm named Collins & Aikman. When the time came to choose his first target, Stockman took aim at Chrysler. Not many years ago, it was all but unthinkable that a mere supplier would dare to hold up one of the Big Three in such a blatant manner. Unfortunately for Stockman, he appears to have mis-timed his play for a big payday. This type of consolidation is not limited to the automotive sector. Advertisement PinIt
Vanishing City: The Story Behind Detroit’s Shocking Population Decline The news this week that Detroit’s population plunged more than 25% to just 714,000 in the last decade shouldn’t be surprising. The city’s collapse is as well-documented as it is astonishing – the population peaked at nearly 2 million in the 1950s, driven in part by a post-World War II auto industry boom now long gone. (More on TIME.com: See tilt-shift photography of Detroit) Predictably, Detroit officials have vowed to challenge the Census Bureau’s report. “I don’t believe the number is accurate,” the mayor, Dave Bing, said in a hastily scheduled news conference Tuesday. But there is another story behind these numbers. (More on TIME.com: See Detroit school kids’ dreams for the future) Simply put, Detroit is at a crossroads. But for all the talk of Detroit’s revival aspirations, this week’s numbers are sobering. (More on TIME.com: See pictures of a Detroit food bank)
Failure of Big Three could cost 3 million jobs, CAR says - Nov. 5, 2008 NEW YORK (CNNMoney.com) -- With auto sales at the weakest pace in 25 years and a government bailout far from certain, job losses in the struggling industry could potentially get much worse. If the Big Three carmakers were to cut U.S. operations by 50%, 2.5 million jobs could be lost in 2009, according to a study released Wednesday. The Center for Automotive Research reported that the total employment impact includes nearly 250,000 jobs lost at the automakers and nearly 800,000 at suppliers. In addition, the organization estimates another 1.4 million job losses outside the industry, such as those caused when stores go out of business in communities hit by plant closings. In economic terms, cutting operations in half would reduce personal income by more than $125.1 billion in the first year, and $275.7 billion over three years, the center said. Such a decline in personal income would cost the government tax dollars -- $49.9 billion in 2009 and more than $108.1 billion over three years.