4.A - the players that influence economic change DETROIT Flashcards
(43 cards)
1
Q
how do TNCs drive structural economic change?
A
- invest in businesses (e.g. Nissan in Sunderlad invested over £2.1 bill)
- move factories into LIDCs (e.g. closure of Cadbury’s Keynsham, moved to Poland)
- the aim of these is to locate/invest in an area where it is possible for them to make a profit
- their arrival or departure can bring about change in an area.
- they may be affected by govt decisions
2
Q
how do govts drive structural economic change?
A
- local vs national (vs trading blocs like EU)
- e.g. Eden Project
- bigger decisions fall to different groups:
> local council makes local decisions (like new businesses opening in Bath)
> national govt = motorways etc. - govt offered Nissan land in sunderland at agricultural prices to attract them
3
Q
how do community groups drive structural economic change?
A
- changes to the area
> e.g. Stokes Croft and Tesco - environmental groups protesting government building new runway at Heathrow
- these have a vested interest in place because they live there, so any change matters.
- they may form pressure groups or conduct local surveys
4
Q
how does the EA drive structural economic change?
A
- looks to protect rural land and greenfield sites
- flood risk
5
Q
how does the national govt drive structural economic change?
A
- they have departments that can make changes to transport, education, housing, the environment of a place
6
Q
how does the local govt drive structural economic change?
A
- they have responsibility for what is or isn’t allowed through the planning process - what can/can’t be built
- local govts set up initiatives for local transport, housing etc. too
7
Q
how does the international govt drive structural economic change?
A
- includes the EU who give grants for projects that may help to improve or regenerate a place e.g. by new roads
8
Q
how do NGOs drive structural economic change?
A
- these may be local or national in scale
- they include large landowners like the national trust or english heritage
- they usually have a specific interest in something e.g. conservation
9
Q
when did the automobile age start?
A
roughly the 1890s
10
Q
how were the car plants economic ecosystems?
A
- all the parts accessible nearby
- a community of workers live there
- services for those workers
11
Q
how big was Detroit at its peak?
A
- detroit became the 4th biggest city in the USA
- 1.8 million in 1950s peak
12
Q
which demographic immigrated into detroit?
A
African Americans from the south as they were in economic distress post american civil war
13
Q
what were some of the issues with the car manufacturing structure in Detroit?
A
- built in unfavourable settings
- very inefficient
- urban pressure
14
Q
how did the African American population change?
A
- 1000 moving to Detroit each month = RAPID CHANGE
- 5700 to 120,000 in 20 yrs
15
Q
what happened in 1943?
A
- RIOTS/altercation between white and black people.
- 34 people killed over 3 days (mostly black)
16
Q
how does white flight link to the car manufacturers spatially?
A
- the automotive plants started to move to the suburbs, deserting the city
17
Q
how did crime change in the 1970s and why?
A
- rise in crime due to economic challenges of people in the city
18
Q
how did the population change as industry declined?
A
- 1.8 million in 1960s
- 1.1 mill in 1970s
- 2000 = less than 1 mill
19
Q
what is detroit like in 2013?
A
- population of less than 700,000
- and debt of £20 billion
20
Q
what happened in 1967?
A
- RIOTS
- falling employment and racial tensions led to serious race riots in 1967
- 5 days of riots left 43 dead, 500 injured and over 2000 stores looted
- racism and abandonment of inner city riots
- catalyst of more white flight
21
Q
what was Detroit’s wealth/wages like before the economic change?
A
- CBD = signs of wealth. grand high rise buildings
- $3/hr, needed no education as it was not skilled labour
- double what you would get paid in any other industry
22
Q
what was Detroit’s population size like before the economic change?
A
1.850 million
23
Q
what was Detroit’s music scene like before the economic change?
A
- Motown was gigantic (record label)
- industrialisation = culture. people had money to spend = +ME
24
Q
what industries were there before the economic change?
A
- detroit built on the mass production of the motor car.
- Ford River Rouge plant alone employed 90,000 people
- by late 19th century Detroit’s industry included leading ship building, pharmaceutical and railway businesses
25
what was Ford's River Rouge plant like?
- Ford River Rouge plant alone employed 90,000 people
- in 1932, the industrial complex was the largest integrated factory in the worl w/ its own docks, railway lines, power station/plant and 120 miles of conveyor belt.
26
how did the demographics on Detroit change *before* the economic change?
- the city grew due to urban sprawl from <500,000 in 1900 to 1.8 mill in 1950s
- hundreds of thousands of workers came from eastern and southern Europe (italy, hungary and poland) and later African Americans from southern states moved north for work.
- detroit's black population surged from 5700 to 120,000 from 1910-30.
- white population peaked in 1950 and declined due to white flight and net outmigration through 2010.
27
who were the big 3 car manufacturers?
- general motors
- chrysler
- ford
28
what was the KEY ECONOMIC CHANGE THAT TOOK PLACE IN DETROIT?
DEINDUSTRIALISATION
29
what does the detroit built environment look like now?
- smashed and broken
- deserted
30
why did the TNCs leave?
- easier to put up a new factory than refurbish an old one
- cheaper and more efficient overall
- people are moving to the suburbs
31
what are the crime rates like?
- 600ppl/yr shot
- "murder capital of the world"
32
what is the key structural change that occured in Detroit?
(the growth and) *decline of the car industry*
33
what are the four factors that lead to the decline of the car industry?
- car manufacture's failure to modernise production methods, poor labour relations and the rise of foreign competition
- oil crisis of 1970s
- globalisation and foreign TNCs
- city government
34
how did car manufactures lead to the decline of the car industry?
- car manufacturers decided to move some factories out of the city to get away from the highly unionised labour in central detroit.
- they invested in automation = less labour
- the 3 big companies failed to modernised and adapt to the changing car market = sales dropped.
- by 1980s unemployment in black suburbs = 45%
35
how did the oil crisis lead to the decline of the car industry?
- oil crisis of 1970s = rising petrol prices = drivers look for more fuel efficient models = loss of sales
36
how did globalisation lead to the decline of the car industry?
- globalisation and foreign TNCs
- japanese car producerss e.g. Toyota took sales away
37
how did the city govt. lead to the decline of the car industry?
- also responsible
- made bad decisions and poor investments
- wasted money on failed projects = less to rebuild the city and cuts from essential services e.g. transport and police
- borrowed too much and failed to cut down on expenditure
- city went bankrupt
38
SOCIO-ECONOMIC IMPACTS: between 1950-2005, Detroit lost...
- 29% homes
- 52% people
- 55% jobs
- 60% tax revenue
39
SOCIO-ECONOMIC IMPACTS: today, Detroit has...
- 23% unemployed
- 36% below poverty line
- voted most dangerous city for 4 yrs in a row (2012)
- $7500 = avg house price
- only 18% adults have a college degree
- out of 85,000 street lights, 1/2 are out of service
40
how did the decline affect demographics?
- sped up "white flight" from central detroit to the suburbs
- population collapsed from 1.8 million to 700,000 (now 900,000)
- wealthy areas along the river (grosse pointe and bloomfield hills) = 3/4 emploeyd in tertiary "creative captial" work
- physicians, surgeons, lawyers and managers etc have made homes here. avg incomes $160,000. pop = 90% white
- highland park = worst area. suffered from huge out migration. avg income = <$20,000. employed as retail food managers. 270 crimes per sq mile. pop= 90% black
41
what are the impacts on the environment?
- closure of so many factories and out migration led to **urban blight**
- 70,000 abandoned buildings (many burned out), 30,000 houses and 90,000 vacant lots
42
how will a positive feedback loop cause bigger problems and create social inequality in the city centre?
- reliance on 1 large manufacturing industry
- rapid growth and opportunities
- decline and deindustrialisation = huge loss of jobs and people move away
- businesses move away and urban degredation occurs
- no one wants to move in to an unattractive, declining area, no income into area and further spiral
43
who were the players in this change?
- governments have been partly responsible for the increase in social inequality
- city's tax base ↓, the govt had less money available to invest in essential services = cuts from transport to education and policing
