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Place > 4.A - the players that influence economic change DETROIT > Flashcards

4.A - the players that influence economic change DETROIT Flashcards

1
Q

how do TNCs drive structural economic change?

A
  • invest in businesses (e.g. Nissan in Sunderlad invested over £2.1 bill)
  • move factories into LIDCs (e.g. closure of Cadbury’s Keynsham, moved to Poland)
  • the aim of these is to locate/invest in an area where it is possible for them to make a profit
  • their arrival or departure can bring about change in an area.
  • they may be affected by govt decisions
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2
Q

how do govts drive structural economic change?

A
  • local vs national (vs trading blocs like EU)
  • e.g. Eden Project
  • bigger decisions fall to different groups:
    > local council makes local decisions (like new businesses opening in Bath)
    > national govt = motorways etc.
  • govt offered Nissan land in sunderland at agricultural prices to attract them
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3
Q

how do community groups drive structural economic change?

A
  • changes to the area
    > e.g. Stokes Croft and Tesco
  • environmental groups protesting government building new runway at Heathrow
  • these have a vested interest in place because they live there, so any change matters.
  • they may form pressure groups or conduct local surveys
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4
Q

how does the EA drive structural economic change?

A
  • looks to protect rural land and greenfield sites
  • flood risk
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5
Q

how does the national govt drive structural economic change?

A
  • they have departments that can make changes to transport, education, housing, the environment of a place
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6
Q

how does the local govt drive structural economic change?

A
  • they have responsibility for what is or isn’t allowed through the planning process - what can/can’t be built
  • local govts set up initiatives for local transport, housing etc. too
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7
Q

how does the international govt drive structural economic change?

A
  • includes the EU who give grants for projects that may help to improve or regenerate a place e.g. by new roads
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8
Q

how do NGOs drive structural economic change?

A
  • these may be local or national in scale
  • they include large landowners like the national trust or english heritage
  • they usually have a specific interest in something e.g. conservation
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9
Q

when did the automobile age start?

A

roughly the 1890s

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10
Q

how were the car plants economic ecosystems?

A
  • all the parts accessible nearby
  • a community of workers live there
  • services for those workers
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11
Q

how big was Detroit at its peak?

A
  • detroit became the 4th biggest city in the USA
  • 1.8 million in 1950s peak
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12
Q

which demographic immigrated into detroit?

A

African Americans from the south as they were in economic distress post american civil war

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13
Q

what were some of the issues with the car manufacturing structure in Detroit?

A
  • built in unfavourable settings
  • very inefficient
  • urban pressure
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14
Q

how did the African American population change?

A
  • 1000 moving to Detroit each month = RAPID CHANGE
  • 5700 to 120,000 in 20 yrs
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15
Q

what happened in 1943?

A
  • RIOTS/altercation between white and black people.
  • 34 people killed over 3 days (mostly black)
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16
Q

how does white flight link to the car manufacturers spatially?

A
  • the automotive plants started to move to the suburbs, deserting the city
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17
Q

how did crime change in the 1970s and why?

A
  • rise in crime due to economic challenges of people in the city
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18
Q

how did the population change as industry declined?

A
  • 1.8 million in 1960s
  • 1.1 mill in 1970s
  • 2000 = less than 1 mill
19
Q

what is detroit like in 2013?

A
  • population of less than 700,000
  • and debt of £20 billion
20
Q

what happened in 1967?

A
  • RIOTS
  • falling employment and racial tensions led to serious race riots in 1967
  • 5 days of riots left 43 dead, 500 injured and over 2000 stores looted
  • racism and abandonment of inner city riots
  • catalyst of more white flight
21
Q

what was Detroit’s wealth/wages like before the economic change?

A
  • CBD = signs of wealth. grand high rise buildings
  • $3/hr, needed no education as it was not skilled labour
  • double what you would get paid in any other industry
22
Q

what was Detroit’s population size like before the economic change?

A

1.850 million

23
Q

what was Detroit’s music scene like before the economic change?

A
  • Motown was gigantic (record label)
  • industrialisation = culture. people had money to spend = +ME
24
Q

what industries were there before the economic change?

A
  • detroit built on the mass production of the motor car.
  • Ford River Rouge plant alone employed 90,000 people
  • by late 19th century Detroit’s industry included leading ship building, pharmaceutical and railway businesses
25
Q

what was Ford’s River Rouge plant like?

A
  • Ford River Rouge plant alone employed 90,000 people
  • in 1932, the industrial complex was the largest integrated factory in the worl w/ its own docks, railway lines, power station/plant and 120 miles of conveyor belt.
26
Q

how did the demographics on Detroit change before the economic change?

A
  • the city grew due to urban sprawl from <500,000 in 1900 to 1.8 mill in 1950s
  • hundreds of thousands of workers came from eastern and southern Europe (italy, hungary and poland) and later African Americans from southern states moved north for work.
  • detroit’s black population surged from 5700 to 120,000 from 1910-30.
  • white population peaked in 1950 and declined due to white flight and net outmigration through 2010.
27
Q

who were the big 3 car manufacturers?

A
  • general motors
  • chrysler
  • ford
28
Q

what was the KEY ECONOMIC CHANGE THAT TOOK PLACE IN DETROIT?

A

DEINDUSTRIALISATION

29
Q

what does the detroit built environment look like now?

A
  • smashed and broken
  • deserted
30
Q

why did the TNCs leave?

A
  • easier to put up a new factory than refurbish an old one
  • cheaper and more efficient overall
  • people are moving to the suburbs
31
Q

what are the crime rates like?

A
  • 600ppl/yr shot
  • “murder capital of the world”
32
Q

what is the key structural change that occured in Detroit?

A

(the growth and) decline of the car industry

33
Q

what are the four factors that lead to the decline of the car industry?

A
  • car manufacture’s failure to modernise production methods, poor labour relations and the rise of foreign competition
  • oil crisis of 1970s
  • globalisation and foreign TNCs
  • city government
34
Q

how did car manufactures lead to the decline of the car industry?

A
  • car manufacturers decided to move some factories out of the city to get away from the highly unionised labour in central detroit.
  • they invested in automation = less labour
  • the 3 big companies failed to modernised and adapt to the changing car market = sales dropped.
  • by 1980s unemployment in black suburbs = 45%
35
Q

how did the oil crisis lead to the decline of the car industry?

A
  • oil crisis of 1970s = rising petrol prices = drivers look for more fuel efficient models = loss of sales
36
Q

how did globalisation lead to the decline of the car industry?

A
  • globalisation and foreign TNCs
  • japanese car producerss e.g. Toyota took sales away
37
Q

how did the city govt. lead to the decline of the car industry?

A
  • also responsible
  • made bad decisions and poor investments
  • wasted money on failed projects = less to rebuild the city and cuts from essential services e.g. transport and police
  • borrowed too much and failed to cut down on expenditure
  • city went bankrupt
38
Q

SOCIO-ECONOMIC IMPACTS: between 1950-2005, Detroit lost…

A
  • 29% homes
  • 52% people
  • 55% jobs
  • 60% tax revenue
39
Q

SOCIO-ECONOMIC IMPACTS: today, Detroit has…

A
  • 23% unemployed
  • 36% below poverty line
  • voted most dangerous city for 4 yrs in a row (2012)
  • $7500 = avg house price
  • only 18% adults have a college degree
  • out of 85,000 street lights, 1/2 are out of service
40
Q

how did the decline affect demographics?

A
  • sped up “white flight” from central detroit to the suburbs
  • population collapsed from 1.8 million to 700,000 (now 900,000)
  • wealthy areas along the river (grosse pointe and bloomfield hills) = 3/4 emploeyd in tertiary “creative captial” work
  • physicians, surgeons, lawyers and managers etc have made homes here. avg incomes $160,000. pop = 90% white
  • highland park = worst area. suffered from huge out migration. avg income = <$20,000. employed as retail food managers. 270 crimes per sq mile. pop= 90% black
41
Q

what are the impacts on the environment?

A
  • closure of so many factories and out migration led to urban blight
  • 70,000 abandoned buildings (many burned out), 30,000 houses and 90,000 vacant lots
42
Q

how will a positive feedback loop cause bigger problems and create social inequality in the city centre?

A
  • reliance on 1 large manufacturing industry
  • rapid growth and opportunities
  • decline and deindustrialisation = huge loss of jobs and people move away
  • businesses move away and urban degredation occurs
  • no one wants to move in to an unattractive, declining area, no income into area and further spiral
43
Q

who were the players in this change?

A
  • governments have been partly responsible for the increase in social inequality
  • city’s tax base ↓, the govt had less money available to invest in essential services = cuts from transport to education and policing

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