Detroit: Building an Economy on Ruins Essay

4758 Words Jan 22nd, 2013 20 Pages
Wayne Titus
Professor TenHaken
Management Seminar
Detroit: Building An Economy On Ruins In America, overcoming a challenge is something that we take pride in. The American spirit is fueled by individuals working hard to make it on their own, booming business, and a unique sense of community backed by this “One nation, under God”. We do not like to stare failure in the face, and we have a hard time taking “no” for an answer. For many, the roots of our country’s prideful spirit began in 1620 with the arrival of The Mayflower in what is now Massachusetts. From there, spanning hundreds of years, American cities have formed across the nation, many of which have become the centers for international business, the arts, sports,
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With all of these factors in place, the Depression was difficult for Detroit, but once the 1940s came about, military contracts with the auto companies helped spark the economy once again. What Detroit failed to realize was that reliance on this industry was not going to help with economic growth over a long period of time. By 1970, one in three dollars in the industry were going overseas, and commerce in the region shrunk. Riots and prejudice in the city also had begun to take hold, and a slow separation of the city and its residents began with thousands emigrating out of Detroit (Lepeska). The collapse of the city had begun, and has spiraled into today, with the city having less than $40 million in the bank, and on the verge of bankruptcy, with a long-term debt of over $12 billion (Detroit City Government). Reform in Detroit is necessary, and there are countless ways to reverse this unfortunate economy. Now the question of the matter is, what is the best way/s to do it?

Urban Anchor Theory One theory for the economic development of Detroit is rooted in “urban anchors”, which are basically institutions or businesses that literally serve as anchors for the city in terms of commerce, education, healthcare, technology, transportation, or other major categories. These are
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