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The Road to Bankruptcy of Detroit City Essays

Satisfactory Essays

The inevitable is no less a shock because it is inevitable ~ Jamaica Kincaid

Founded in 1701 by nearly 100 French settlers, Pontchartrain du Detroit was not doomed to bankruptcy. Located near epicenters of trade including the Canadian Border and the -Detroit River and rich in resources Detroit, from a geographic sense, was a city established on lands destined to prosper. Turning into an industrial powerhouse in the 20th century, the city saw an enormous boom in both population and industrial prosperity with the growth of the iron stove, railroad car, and ship building industries. It wasn’t until auto manufacturing renaissance initiated with the founding of Henry Ford Co. in 1910 that Detroit began it’s nearly 100 year long descent …show more content…

The first factor in Detroit’s collapse was the undeniable success of the auto industry. The expansion of the big three auto producers, Chrysler, Ford, and General Motors led the charge. In addition to dominating the auto industry, the big three were largely responsible for the success of local business throughout Detroit. Direct suppliers towards the auto companies themselves, and the subsequent services provided to the auto workers and their families composed the majority of Detroit business. The rapid expansion of the auto industry resulted in the industry’s decentralization with the city limits of Detroit and caused the expansion of the outlying areas surround Detroit. The decentralization of industry had profound effects on the geography and on the population of the city. The movement of jobs out of the city accelerated the process of suburbanization, as autoworkers who could move followed their jobs. This trend is demonstrated by Census data, showing that following the creating of new auto plants outside the city of Detroit resulted in the total population dropping by nearly 300,0000 citizens by 1960. Following this decentralization, the auto industry suffering from international competition and rising oil prices, was unable to sustain the levels of economic output seen in years prior; and as a result, became a less desirable place to live for both workers looking to relocate and current residents.

This table illustrates the

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