The Decline of Detroit: Why the Automakers Moved On

Detroit, once known as the iconic motor city, has faced a dramatic decline over the decades. Many mistakenly believe that the automakers left Detroit because of relocation to other cities. However, the truth is more complex and rooted in historical, socio-economic, and policy factors. This article delves into why Detroit declined and how the decline was exacerbated by various internal and external factors.

Unveiling the Truth: Detroit and the Automakers

Contrary to popular belief, the Big Three automakers (General Motors, Ford, and Chrysler) have roots in Detroit despite the decline. While government headquarters and Ford's and Chrysler's suburban offices are evident today, the phrase "Detroit Three" still accurately represents the legacy of these companies. However, the displacement of automotive jobs from the city occurred due to a combination of socio-economic and policy issues, leading to a significant shift of the workforce. The term "left" may be a mischaracterization, as the exodus was more about a gradual departure rather than an abrupt exodus.

Socio-Economic Factors: The 60s and 70s

The turmoil in the 1960s and 1970s significantly contributed to the decline of Detroit:

Racist Tension and Gang Violence: The city was in chaos, marked by racial tensions and gang violence. This created an unstable environment for businesses and workers. Suburbanization: As middle-class residents moved to the surrounding suburbs, the city experienced a brain drain, taking with them the jobs and economic vitality. Discrimination and Discriminatory Policies: The poor, primarily Black communities, faced discrimination and unfair labor practices. This, combined with segregation laws, further strained the social fabric of the city.

Policy and Economic Factors

Several policy decisions and economic conditions in Detroit also played a crucial role in the decline:

High Taxes and Hostile Living Conditions: The city's exorbitant taxes and difficult living conditions deterred both residents and companies from staying. Restrictive Union Policies: Unions with stringent demands and practices created a volatile work environment, making it hard for businesses to operate profitably. Immigrant Competition: Strong competition from immigrant workers who were willing to work longer hours and for lower wages drove down wages and job satisfaction.

Blaming the Japanese

While some point to the Japanese automakers as the main culprits behind Detroit's decline, the issue is more complex. The rapid rise of Japanese automakers in the US is often cited as a reason for Detroit's downfall, but it is the internal neglect of Detroit's problems that is the real reason automakers almost abandoned the city. Had Detroit addressed its issues, it might have attracted Japanese automakers as well, just like it did with Ford and General Motors.

Policy Reforms and Northern Cities

The contrast between Detroit's decline and other cities like Chicago highlights the importance of effective economic policies. While Detroit's demise was dramatic, Chicago managed to stave off a similar fate due to better economic policies and a lack of racial tension. Southern and central states, with more favorable living conditions and less restrictive labor laws, became more attractive to automakers, leading to setups in states like Alabama and Georgia.

Ultimately, the decline of Detroit was a perfect storm of socio-economic challenges and policy shortcomings. Detroit could have been a hub for Japanese automakers if it had dealt with its issues effectively. Instead, it became a cautionary tale, a city that failed to adapt to the changing economic landscape, leading to the almost complete abandonment of one of America's most iconic and once-prosperous cities.