The Rise and Fall of Detroit

The history of Detroit, USA from 1900 to the present day present offers an interesting case study in the benefits of industrial modernity in the early 20th century, and the problems caused by modernity’s decline from the 1960s.

Detroit underwent a rapid process of industrialization in the early part of the 20th century, which led to enormous prosperity and wealth being generated which was, by and large, shared by the majority of the city’s population. Detroit is synonymous with Henry Ford, and the particular model of industrial-capitalism which he basically invented – mechanized production and decent wages and benefits for his workers.

However, the second half the century saw Detroit spiral into a decline of de-industrialization, state-bankruptcy, inequality, and social unrest.

Detroit – linked to East and West coast USA via river and rail.

The Rise of Detroit: Industrialization from the 1900s to the 1950s

In its hey day, Detroit represents one of the most successful case studies in Industrialization in world history. The case of Detroit helps us to understand why Modernization Theorists in the 1940s and 50s were so keen on exporting Capitalist-Industrialization as a model of development for other countries: basically industrialization brought about many positive developments and so it seemed logical to export it. 

By the late 19th century Detroit’s industry included leading shipbuilding, pharmaceutical and railway businesses. Detroit was successful because it was strategically located near to natural resources and markets via railroads and steamboats, and from the mid 19th century there was no place that better represented American progress and power.

Detroit was the Motor city that helped drive the United States forward,  and the most well-known company which was based there was the Ford Motor Company – in 1932, its Rouge River industrial complex was the largest integrated factory in the world, with its own docks, railway lines, power station and plant, and over 100 000 workers, and 120 miles of conveyor belt.

Raw materials including iron ore and coal arrived by barge and rail and completed for Model Bs rolled off the end of the vertically integrated production lines.

Ford’s River Rouge Industrial Plant

In 1932 Henry Ford’s son commissioned the famous Mexican artist Diego Rivera to paint scenes of the nearby Ford factories, which can today be viewed in the Detroit Institute of Art. Rivera’s murals captured the heat, energy and dynamism of the factories, but also the political and social tensions of time. Rivera was a communist, while Ford was a staunch opponent of labour organisations, and Rivera’s murals show workers working in harmony with machines, but also hint at the struggles between management and employees, which would become much more marked in the following decades.

One of Rivera’s murals commissioned by Ford

Through industrialization, both the human bodies of the workers and the landscape came to serve the needs of industrial capital, and women and men experienced this in very different ways, with men working in the factories, and women, by and large, staying at home, restricted to the private sphere.

The Ford family grew incredibly wealthy through their mastery of technology and production lines and their extraction of surplus value from the labour of workers. Mass production was perfected by Ford – his famous Model T was launched in 1900, and by 1918, half of all cars in America were Model Ts.

Ford not only transformed the economic organisation of society, he also helped transformed its social organisation – he invested much of his profit into social welfare – by establishing an art institute and the Henry Ford Hospital, for example, while the relatively high wages he paid to his workers helped them to increase their consumption and enjoy new leisure opportunities, helping to forge a new consumer culture. This compromise between capital and labour is known as Fordism.

The Henry Ford Hospital

In the 20th century, Detroit became a booming metropolis. The Ford Factory was only the largest of 125 motor factories in the city in the early 20th century, and there were many other industries to. The population of Detroit soared from under 80 000 in 1870 to over 1.5 million in 1930, making it the fourth largest city in America at that time.

The assembly lines and the rhythms of work gave new arrivals a purpose and set in motion a relentless movement towards modernity and progress. Mass production would lead mass employment and in turn enable mass consumption. Detroit was the world’s greatest working-class city in the most prosperous nation on earth. The automotive industry and the giants such as Ford and General Motors and Chrysler that dominated Detroit were what California’s Silicon Valley and the tech monopolies of Apple, Google and Twitter are to today’s era of smartphones, software and social media.

The Great depression of the 1930s struck a devastating blow as automobile sales fell rapidly, but the city was revitalized by the Second World War as car factories were rebooted to produce tanks and planes for the US military and its allies. Detroit became the ‘arsenal of democracy’.

Following victory the whole American economy was booming and a second great period of Fordism surged forwards as mass automobile ownership spread across the United States. Great chrome Cadillacs and luxury Lincolns sailed off the production lines in the 1950s like polished ocean cruisers….

Cars manufactured in Detroit in the 1950s transformed America

However, from the late 1960s onward, a combination of the growth of industrial competition from abroad and underlying social and ethnic tensions in Detroit would lead the city into a spiral of de-industrial decline…..

The Decline of Detroit 

Beneath the gloss of mass consumption Detroit always hid inequalities.

On July 23 1967 police busted an illegal after-hours salon in a black neighborhood. 85 people were arrested and tempers rose between the detainees and the officers. A five day riot ensued which was quashed by 17000 police, national guard and troops resulting in over 7000 arrests.

Black people were expressing their resentment over limited housing and economic opportunities and a history of racial discrimination and violence. Detroit increasingly became a black majority city as the white working classes moved to the suburbs (80 000 left in 1968 alone), leaving Detroit city in a decline of mass unemployment and rising crime.

A downward spiral continued into the 1970s as American manufacturers faced increasing competition from abroad and moved production to cheaper locations to cut cost, leaving further unemployment in their wake.

Downtown Detroit 1991

Detroit city further suffered because remaining managers and workers moved out to the suburbs or smaller towns just outside of the city – because tax revenue was heavily reliant on property taxes, Detroit city lost a considerable amount of its tax revenue, while the administrative centers around Detroit were well funded by the relatively well off workers who had moved to them. Detroit became a divided city – with wealthy, well funded suburbs and a declining, underfunded central city authority with massive social problems.

The 2007/08 financial crisis shook the auto industry to its core – but companies such as Chrysler and General Motors were bailed out by the Federal government, and have since recovered – Across metro Detroit half a million people still work in manufacturing, 130 000 in the auto industry, and they earn 75% above the state average salary.

Detroit city, on the other hand, did not fare so well during the financial crisis and in 2013 underwent the largest municipal bankruptcy in US history.

To emphasize the inequality in Detroit:

  • In Livingstone county, which is 96% white,  the median household income is $73000
  • In Detroit City, which is 82.7% black, the median household income is $26, 000 and nearly 40% of people live in poverty.

Detroit south of the 8 Mile boundary – made famous by Eminem’s 8 Mile movie, is considered to have one of the highest murder rates in the country, and there are over 100 000 empty properties.

 

There are some positive development projects going on in Detroit, but the stark difference between rich and poor in the wider region is plain for any observer to see.

Lessons from Detroit 

Detroit is important because it is a signal case for what is happening in many industrialized countries around the world – across the rust belt in America and mirrored in Southern European countries and northern England as well.

It reminds us that impoverishment is not just limited to the global south.

Sources: 

Modified from Andrew Brooks (2017) The End of Development (I’d classify this as alefty take on development!)

 

 

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