background preloader

Detroit Research Paper

Facebook Twitter

After bankruptcy, few options for Detroit to grow revenue. Slash costs, fix the balance sheet and take money that was once tied to debts and spend it on police, fire and other city services. That's the premise of Detroit's bankruptcy: short-term pain for long-term benefit, and cuts for Detroit's creditors, but better outcomes for residents. But of the $1.7 billion that Detroit's post-bankruptcy plan is expected to generate, only about $900 million comes from restructuring the city's debts. About $483 million comes from projected new revenues, $358 million from cost savings.

"We don't have $1.7 billion in the bank," said former Detroit emergency manager Kevyn Orr, who led the city through bankruptcy. "We think we've made our estimates reasonable. " Simple enough on paper, but in reality? In short, it's not that easy. "It's very fragile," said Sheila Cockrel, a 16-year veteran of the Detroit City Council who is now the president of Crossroads Consulting. Why is it different now? Like a lot of Detroit's problems, it sounds simple. Where cash comes from. Anatomy of Detroit’s Decline - Interactive Feature. Mayor Coleman A.

Young of Detroit at an event in 1980. Richard Sheinwald/Associated Press The financial crisis facing Detroit was decades in the making, caused in part by a trail of missteps, suspected corruption and inaction. Here is a sampling of some city leaders who trimmed too little, too late and, rather than tackling problems head on, hoped that deep-rooted structural problems would turn out to be cyclical downturns. Charles E. Bowles, backed by the Ku Klux Klan, was in office for seven months in 1930 before people demanded his removal.

His ascension to the mayor's office was followed by a spike in crime, and he was suspected to be linked to some of Detroit's underworld figures, according to “Detroit: A Biography" by Scott Martelle. Edward Jeffries, who served as mayor from 1940 to 1948, developed the Detroit Plan, which involved razing 100 blighted acres and preparing the land for redevelopment. Coleman A. Kwame M. Related. U.S. Automakers Thrive as Detroit Goes Bankrupt. The Motor City was the car capital of the world when David Cole graduated from a Detroit high school in 1955 and headed off to college to study auto engineering. Six decades later, the “motor” has mostly moved out, he said. Many of the factories that used to dot the city and employ thousands moved to suburbs, other U.S. states or to China and Brazil as the auto industry became global and manufacturing focused on getting faster and less expensive, said Cole, chairman emeritus of the Center for Automotive Research in Ann Arbor, Michigan, and son of a General Motors Co. president.

“The auto industry was forced to change, driven by industry pressure, and it evolved,” Cole said. “Detroit did not. Detroit, hamstrung by $18 billion in debt, was forced to file the largest bankruptcy for a U.S. municipality yesterday. “For much of the 20th century, the auto industry and Detroit were synonymous,” said Harley Shaiken, a labor professor at the University of California at Berkeley. ‘Much Messier’ Detroit Riot of 1967 | American history.

Detroit Race Riots 1943 . Eleanor Roosevelt . WGBH American Experience. As the nation's most important production center during the Second World War, the city of Detroit was popularly known as the "arsenal of democracy. " The city's overwhelmingly industrial landscape had been rapidly expanding since the manufacturing boom of the post-Civil War era. Yet its industrial prosperity masked underlying and deeply-rooted racial animosities. As the city's many production plants mobilized for the war effort, employers turned to a ready pool of African American labor from the South. Yet Detroit was in no way equipped to accommodate these new laborers. The shift in the city's demographics caused volatile racial tensions which would erupt into one of the bloodiest riots in the nation's history. By the 1940s Detroit already had a long history of racial conflict.

These and numerous other indignities contributed to escalating racial tensions in June of 1943. The Detroit riot began at a popular and integrated amusement park known as Belle Isle. AMTRACK STUDENT CARD 50$ Businessinsider. America's 10 sickest housing markets - Business - Real estate. For three years, the real estate market has been going in one direction — primarily down. Some areas, however, have begun to recover. Recent S&P/Case-Shiller data show that among the top 20 housing markets in the U.S., 18 had very modest improvements in sales prices during May. Others, like Washington and Boston, have began to at least stabilize from a year ago. Few markets, however, can match Washington and Boston. Once this is resolved, economists fear the market will be flooded with even more vacant, unsold homes. 24/7 Wall St. has taken a new look at the housing market to find the very weakest cities by identifying those with the highest homeowner vacancy rates and rental vacancy rates.

These are cities where the requirement for living space has dropped well below the national average. These cities, like Detroit, St. The analysis shows that some cities have home vacancy rates over 5 percent and rental vacancy rates over 10 percent. These are America’s ten sickest housing markets: 9. So cheap, there’s hope. Return to suburbs is the new move to the city - Business - Forbes.com. For well over a decade urban boosters have heralded the shift among young Americans from suburban living and toward dense cities. As one Wall Street Journal report suggests young people will abandon their parents’ McMansions for urban settings, bringing about the high-density city revival so fervently prayed for by urban developers, architects and planners. Some demographers claim that “white flight” from the city is declining, replaced by a “bright flight” to the urban core from the suburbs. “Suburbs lose young whites to cities,” crowed one Associated Press headline last year.

Yet evidence from the last Census show the opposite: a marked acceleration of movement not into cities but toward suburban and exurban locations. The simple, usually inexorable effects of maturation may be one reason for this surprising result. Forbes.com slideshow: The 15 best cities for young professionals An analysis of the past decade’s Census data by demographer Wendell Cox shows this. . © 2012 Forbes.com. Forbes Welcome. How Detroit Leaders Ignored Causes of Bankruptcy for 65 Years. By Lew Mandell The signs of Detroit’s decline have been well-recognized for 65 years. Photo courtesy of Spencer Platt/Getty Images. For the past few months, Lew Mandell, author of “What to Do When I Get Stupid,” has been our retirement finance guru. He’s addressed multiple ways to close the retirement income gap, encouraging boomers to plan ahead before they lose their financial faculties to old age.

The best retirement deal, he thinks, is the one that guarantees an 8.3 percent return — for life: Single Payment Immediate Annuities. But Mandell’s expertise is vast. Making Sense has done extensive reporting on Detroit, both the city’s declines and hopes. Lew Mandell: Detroit has just been allowed to enter the largest municipal bankruptcy in U.S. history. The economic malaise began with the exodus of non-automotive manufacturing jobs from Detroit, just after the Second World War. Relocation out of Detroit By the time of my study in 1972, the employment situation in Detroit was acute. Marilyn Salenger: ‘White flight’ and Detroit’s decline. By Marilyn Salenger By Marilyn Salenger July 21, 2013 Marilyn Salenger is president of Strategic Communications Services and a former correspondent and news anchor for several CBS stations. An almost palpable sadness has swept across the country at the news that the city of Detroit has filed for bankruptcy.

While the possibility of this had been discussed, the reality of what was once the fourth-largest city in the United States sinking to such depths is disheartening, a moment people will remember for years to come. To understand that the decline and bankruptcy represent so much more than dollars and cents requires a step back to a time that many would prefer to forget but remains unforgettable. In the late 1960s,racial tensions engulfed parts of our country, at the cost of lost lives and abject destruction.

Such was the case in Detroit during the summer of 1967, when one of the worst race riots our country had seen took place. Opinions Orlando Shooting Updates post_newsletter348 true false. Detroit just filed for bankruptcy. Here’s how it got there. By Brad Plumer By Brad Plumer July 18, 2013 On Thursday, the city of Detroit filed for bankruptcy — the largest city in the United States ever to do so. (Carlos Osorio/AP) To get a better sense of just how Detroit got into such dire financial straits, it's worth browsing through this May report on the city's finances and this "Proposal for Creditors" from June.

Detroit's emergency manager Kevyn Orr laid out all the problems and economic headwinds facing the city. For instance: — Since 2000, Detroit's population has declined 26 percent. . — The official unemployment is now 18.6 percent, and fewer than half of the city's residents over the age of 16 are working. . — Low tax revenue, in turn, means that city services are suffering. . — High crime and blight are driving even more residents out of the city. . — Detroit is sagging under decades of bad governance. . — Meanwhile, Detroit owes around $18.5 billion to its creditors. Wonkbook newsletter Your daily policy cheat sheet from Wonkblog. Whites Moving to Detroit, City That Epitomized White Flight. Whites are moving back to the American city that came to epitomize white flight, even as blacks continue to leave for the suburbs and the city’s overall population shrinks.

Detroit is the latest major city to see an influx of whites who may not find the suburbs as alluring as their parents and grandparents did in the last half of the 20th century. Unlike New York, San Francisco and many other cities that have seen the demographic shift, though, it’s cheap housing and incentive programs that are partly fueling the regrowth of the Motor City’s white population. {snip} No other city may be as synonymous as Detroit with white flight, the exodus of whites from large cities that began in the middle of the last century. Detroit went from a thriving hub of industry with a population of 1.8 million in 1950 to a city of roughly 680,000 in 2014 that recently went through the largest municipal bankruptcy in U.S. history. In the three years after the 2010 U.S. Original Article. White Flight Is Reversing in Detroit, Overturning a 60-Year Trend.

Detroit is essentially the poster-city for population flux and demographic shifts. In 1950, the city’s total population neared 2 million people, 84 percent of whom were white. If you flash forward 60 years later to 2010 though, the city’s total population tapered off at 711,299 total residents, 84 percent of whom were black. The phenomenon of “white flight” that characterized Detroit for the better part of a century seems to be reversing course to some extent; however, as Census data recently reported by the Detroit News contends, the city’s white population grew by 8,000 people in 2014. According to that Census data, last year is marked by the largest influx of white people Detroit has seen since 1950. Even with 8,000 new white people living in Detroit, the city’s total white population is only up 2.5 percentage points from 2010, and currently amounts to a total of 10.2 percent of the city’s collective demographic.

Detroit’s white population rises. Detroit’s white population rose by nearly 8,000 residents last year, the first significant increase since 1950, according to a Detroit News analysis of U.S. Census Bureau data. The data, made public Wednesday, mark the first time census numbers have validated the perception that whites are returning to a city that is overwhelmingly black and one where the overall population continues to shrink. Many local leaders contend halting Detroit’s population loss is crucial, and the new census data shows that policies to lure people back to the city may be helping stem the city’s decline. “It verifies the energy you see in so many parts of Detroit and it’s great to hear,” said Kevin Boyle, a Pulitzer Prize-winning author and historian who studies the intersection of class, race, and politics in 20th-century America. “The last thing I want to do is dampen the good news, but the problem is Detroit is still the poorest city in the U.S. “I think it’s a trend.

“It’s not creating an even playing field.” Whites moving to Detroit, city that epitomized white flight. DETROIT — Whites are moving back to the American city that came to epitomize white flight, even as blacks continue to leave for the suburbs and the city’s overall population shrinks. Detroit is the latest major city to see an influx of whites who may not find the suburbs as alluring as their parents and grandparents did in the last half of the 20th century.

Unlike New York, San Francisco and many other cities that have seen the demographic shift, though, it is cheap housing and incentive programs that are partly fueling the regrowth of the Motor City’s white population. “For any individual who wants to build a company or contribute to the city, Detroit is the perfect place to be,” said Bruce Katz, co-director of the Global Cities Initiative at the Washington-based Brookings Institution. “You can come to Detroit and you can really make a difference.” “A young person can move here with $10,000 and start up a small flex space for artists or artists’ studios,” Seger said. Elizabeth St. St. Marilyn Salenger: ‘White flight’ and Detroit’s decline. Complete List - How Detroit Lost Its Way. General Motors, Delphi and the unions: Last tango in Detroit? “IN THIS case, it takes three to tango.”

So said Rick Wagoner, the boss of General Motors (GM), this week—his re-working of an old cliché, capturing the contortions he is having to perform as he struggles to save the ailing giant of the car industry. Given its shrinking market share, GM would be hard enough to revive were it any firm in any industry. But GM is not any old firm, and designing more sellable cars is arguably the least of its problems. These, as Mr Wagoner says, require it somehow to find a way not only to get back on its feet, but also to dance simultaneously with Delphi, its now bankrupt parts supplier, and with one of America's toughest trade unions, the United Auto Workers (UAW).

No wonder the firm's share price heads ever lower, and observers talk gloomily about GM stumbling dangerously towards Chapter 11 bankruptcy protection. The question now is what, if anything, can be done to get GM heading in the right direction again? Explicit cookie consent. Saving Detroit: Iron Orr. The city’s broke. Let me fix it IT IS, says the man who has to deal with it, “the Olympics of restructuring”.

After decades of population decline (see chart), political bungling and corruption, Detroit, once America’s third-largest city, now needs an emergency manager to save it. In March the state of Michigan appointed Kevyn Orr, a bankruptcy lawyer (pictured), to the unenviable job. In May, to no one’s surprise, he declared the city insolvent. Its ability to borrow was exhausted after years of issuing long-term debt to pay its bills. The city has liabilities of more than $17 billion, or $25,000 for everyone who lives there.

On June 14th Mr Orr announced a moratorium on the repayment of all unsecured debt, starting with a $40m payment due that day. Municipal services are failing, too—not least because the city now sprawls over 139 square miles. Bettie Buss, an expert on Detroit who works for the Citizens Research Council of Michigan, says Mr Orr’s proposal to creditors is quite new.