CP- 1.3.4 Flashcards
Name the deindustrialised urban area that you must mention when a question asks about economic and social inequalities
Detroit in the rust belt is key example deindustrialisation
Name the main cause of Detroit’s decline
Deindustrialisation
What is the Rust belt
Rust belt refers to several states in north-east USA, that suffered from deindustrialisation
Define deindustrialisation
Give an example of where this happened and a key fact associated with this
Deindustrialisation is the the Long-term absolute decline in the manufacturing sector
Deindustrialisation in Detroit is reinforced by the fact that in the 60’s Detroit was the 4th largest in the world but now 1/3 of the city is left derelict
Where did Detroit’s motive industries relocate to
Why did they relocate
What did it cause in Detroit
Car industries (Ford, Chrysler and GM) relocated to the suburbs
Because of econ decline in city- lack of investment –> industries moved to cheaper land
Triggered the spiral of decline
(Investment decline- loss of jobs - neg multiplier effect- dereliction)
In relation to economic change and social inequalities in a deindustrialised urban area
what was the before, then what caused economic change (decline) and then Detroit after
Detroit before deindustrialisation
-4th largest city in the US, peaking population of 1.8 million
- USA’s ‘motor city’ where ford pioneered mass production and others followed
- Cheap labour, produced 75% of USA’s cars, Agglomeration clustering of same industries
THEN (causes of economic decline)
1. Technology improvements- mechanisation-loss of jobs in the factories 2. Globalisation –> increasing connection -outsourcing of jobs (businesses move production to areas with lower wages)
After-
-1/3 of the city is derelict, 6,700 population
-70,000 abandoned homes (white flight- out migration of middle class moving to suburbs- due to racial tension)
Economic change in a deindustrialised urban place
name the factors involved in response to the causes of economic change
economic shift/economic transformation
Detroit Deindustrialisation
Economic decline
Economic restructuring
In relation to economic restructuring, what did Detroit government try to, to replace the single reliance industry-automation industry
Public investment into other businesses to try revitalise the city
such as education, tech hubs - but none could replace the huge economic loss and unemployment
What are the social inequalities in Detroit
- Racial tension- segregation exaccerbated the economic decline
Migration of black people around 1940s -jobs
1967 riots (rebellions) led to white flight of over 300,000 to suburbs- built new houses
Detroit didn’t recover from this population decrease and high amounts of abandoned houses - Economic inequalities (income and poverty) - automation moving to suburbs led to people losing their high wages in that industry –> forced to work for lower wages in retail
poverty impacts- 36% pop under poverty line, increased crimes rates led to move surburbanisation
1.3.4 b
List the consequences of loss of secondary industries in urban areas (use Detroit as an example)
unemployment needed to be mentioned
-High levels of unemployment
- Increased poverty 39% of Detroit’s population live under the poverty line, unlike the rest of the US that only 7%
- Decline in population- white flight and suburbanisation dropping from 1.8 million to 700,000 between 1950-2010
-Urban decay- Significant dereliction with 70,000 houses abandoned, and still 40,000 derelict today
reduced investment in services- reduced city funding-city filed for bankruptcy due to having $18 billion debt
1.3.4 c -governmental policies in deindustrialised areas including economic (local to global), environmental and tertiary stimulation and investment by MNCs
Name all three governmental policies in Detroit - what did they try to do hat
DFC, DEGC and CCIF all tried to manage deindustrialisation by encouraging economic growth
DFC Detroit’s future city- 50 year vision to improve the city by prioritising employment and highlight the opportunities available, this non-profitable organisation did this by ensuring there was continued investment, so the city could be rebranded
DEGC (Detroit’s Economic Growth Corporation)- they designed and implemented innovative solutions to attract investment –> create jobs
CCIF (Creative Corridor investment fund) - funding from the DEGC for the creative industry such as marketing and marketing
