Structural economic change in Detroit Flashcards
what is structural economic change
a change in a place, as a result of the change in industrial structure, thus resulting in things being developed, or deindustrialised, thus brining jobs and income to the local area
who are the players who play a role, in structural economic change
- TNC’s
- governments
- EU
- super national organisations
- communities
- environment agency
- NGO’s
when was the start of the automobile age
1890
what was the population of Detroit in 2013, and how much debt was it in
20 billion
how did the population change, as a result of industrial decline
1.8 million down to 1.1 million
who where the big 3 car manufactures
Chrysler, ford and general motors
how will industrialisation, cause a positive feedback loop
- the building of a new plant, will lead to more taxes thus helping to boost economy, thus creating exponential growth
how many people, did ford employ
90,000 people
how did the demographic of Detroit change
- 1910, there was a population of 5,000 black Africans, this rose to 120,000 in 1930
- in 1950, the population of white people was at it’s peak
- there was a population decrease up till 2010, due to white flight
why did the TNC’s, leave the area
- easier to build a new factory, instead of refurbishing a new one
- cheaper to build highways to the suburbs
- people where leaving to the suburbs, meaning that there would be a potential workforce, in the suburbs
what was the white flight
a term used to describe the aftermath of the 1967 Detroit riots leading to many white Detroit people, moving to the suburbs
what is the crime rate in Detroit (gun crime)
around 600 people shot to death per year
what is the key structural change that occurred in Detroit
- industry, started to close down, with the factories moving to the suburbs, lead to more people moving to teh suburbs, thus leading to a large decline in industry
what where the 4 reasons, for the structural change that occurred in Detroit
- car manufactures moving out, taking away jobs
- globalisation, with other manufactures such as Toyota. Due to technical innovation Detroit fell behind and Toyota moved to the south due to that ability to pay low wages
- city government, are also responsible, with poor decisions, meaning that money was invested in the wrong place, thus increasing the effect that industrial decline had.
- new technology, means that less manual labour is needed, also manufacture outside of the city is much more economically viable.
- counter urbanisation
- globalisation, e.g. online shopping, causing a decline in the high street shops.
