4.A - the players that influence economic change DETROIT Flashcards
how do TNCs drive structural economic change?
- 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
how do govts drive structural economic change?
- 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
how do community groups drive structural economic change?
- 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
how does the EA drive structural economic change?
- looks to protect rural land and greenfield sites
- flood risk
how does the national govt drive structural economic change?
- they have departments that can make changes to transport, education, housing, the environment of a place
how does the local govt drive structural economic change?
- 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
how does the international govt drive structural economic change?
- includes the EU who give grants for projects that may help to improve or regenerate a place e.g. by new roads
how do NGOs drive structural economic change?
- 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
when did the automobile age start?
roughly the 1890s
how were the car plants economic ecosystems?
- all the parts accessible nearby
- a community of workers live there
- services for those workers
how big was Detroit at its peak?
- detroit became the 4th biggest city in the USA
- 1.8 million in 1950s peak
which demographic immigrated into detroit?
African Americans from the south as they were in economic distress post american civil war
what were some of the issues with the car manufacturing structure in Detroit?
- built in unfavourable settings
- very inefficient
- urban pressure
how did the African American population change?
- 1000 moving to Detroit each month = RAPID CHANGE
- 5700 to 120,000 in 20 yrs
what happened in 1943?
- RIOTS/altercation between white and black people.
- 34 people killed over 3 days (mostly black)
how does white flight link to the car manufacturers spatially?
- the automotive plants started to move to the suburbs, deserting the city
how did crime change in the 1970s and why?
- rise in crime due to economic challenges of people in the city
how did the population change as industry declined?
- 1.8 million in 1960s
- 1.1 mill in 1970s
- 2000 = less than 1 mill
what is detroit like in 2013?
- population of less than 700,000
- and debt of £20 billion
what happened in 1967?
- 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
what was Detroit’s wealth/wages like before the economic change?
- 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
what was Detroit’s population size like before the economic change?
1.850 million
what was Detroit’s music scene like before the economic change?
- Motown was gigantic (record label)
- industrialisation = culture. people had money to spend = +ME
what industries were there before the economic change?
- 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
what was Ford’s River Rouge plant like?
- 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.
how did the demographics on Detroit change before the economic change?
- 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.
who were the big 3 car manufacturers?
- general motors
- chrysler
- ford
what was the KEY ECONOMIC CHANGE THAT TOOK PLACE IN DETROIT?
DEINDUSTRIALISATION
what does the detroit built environment look like now?
- smashed and broken
- deserted
why did the TNCs leave?
- easier to put up a new factory than refurbish an old one
- cheaper and more efficient overall
- people are moving to the suburbs
what are the crime rates like?
- 600ppl/yr shot
- “murder capital of the world”
what is the key structural change that occured in Detroit?
(the growth and) decline of the car industry
what are the four factors that lead to the decline of the car industry?
- 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
how did car manufactures lead to the decline of the car industry?
- 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%
how did the oil crisis lead to the decline of the car industry?
- oil crisis of 1970s = rising petrol prices = drivers look for more fuel efficient models = loss of sales
how did globalisation lead to the decline of the car industry?
- globalisation and foreign TNCs
- japanese car producerss e.g. Toyota took sales away
how did the city govt. lead to the decline of the car industry?
- 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
SOCIO-ECONOMIC IMPACTS: between 1950-2005, Detroit lost…
- 29% homes
- 52% people
- 55% jobs
- 60% tax revenue
SOCIO-ECONOMIC IMPACTS: today, Detroit has…
- 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
how did the decline affect demographics?
- 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
what are the impacts on the environment?
- 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
how will a positive feedback loop cause bigger problems and create social inequality in the city centre?
- 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
who were the players in this change?
- 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
