The Great Recession has destroyed many cities in America but no city has suffered as much as Detroit. When the automobile companies declared bankruptcy this created complete chaos since trust was lost between investors and the people. As a result of this, the majority of people saw Detroit as a lost cause and viewed the metropolitan area as an economic wasteland. However, Detroit never gave up. The auto industry attained back its health, the Motor City slowly crawled its way back from a near-death economic experience to rebirth as a imperative business hub. It all started in 1950 when almost “1.85 million of people” moved into Detroit since the Big Three automobile companies had settled in which created a vast amount of new jobs. Padnani, Amy.
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For this reason, many strikes were taking place which caused those industries to decentralize. Additionally, the US itself was facing the energy crisis where the “oil prices jumped 350%” National Archives. (2017, January 10). Energy Crisis. Retrieved from http://americanhistory.si.edu/american-enterprise-exhibition/consumer-era/energy-crisis. Granted that the prices of oil had risen to become so high, this caused the factories’ profits to really plummet down. As everything started to become more expensive, businesses started to laid off workers which created more unemployment. Inflation and economic stagnation started to appear and quickly shook the confidence in the American Dream. Correspondingly, the Federal Reserve applied contractionary policies to fix the shockingly high inflation and unemployment that had been caused by the energy crisis. However, the recession of 1990 came and just created even more chaos then there was before. Henceforth, all those automobile industries to move elsewhere and lead to Detroit being hit the hardest in the US. These are just outside factors to Detroit’s decline since racial tensions, shortcomings of leadership, lack of an efficient transit system, and the impact of poverty, are all part of The Motor
For this reason, many strikes were taking place which caused those industries to decentralize. Additionally, the US itself was facing the energy crisis where the “oil prices jumped 350%” National Archives. (2017, January 10). Energy Crisis. Retrieved from http://americanhistory.si.edu/american-enterprise-exhibition/consumer-era/energy-crisis. Granted that the prices of oil had risen to become so high, this caused the factories’ profits to really plummet down. As everything started to become more expensive, businesses started to laid off workers which created more unemployment. Inflation and economic stagnation started to appear and quickly shook the confidence in the American Dream. Correspondingly, the Federal Reserve applied contractionary policies to fix the shockingly high inflation and unemployment that had been caused by the energy crisis. However, the recession of 1990 came and just created even more chaos then there was before. Henceforth, all those automobile industries to move elsewhere and lead to Detroit being hit the hardest in the US. These are just outside factors to Detroit’s decline since racial tensions, shortcomings of leadership, lack of an efficient transit system, and the impact of poverty, are all part of The Motor