
Once America's "arsenal of democracy, " Detroit has become the symbol of the American urban crisis. In this reappraisal of America's dilemma of racial and economic inequality, Thomas Sugrue asks why Detroit and other industrial cities have become the sites of persistent racialized poverty.
Detroit itself is an amazing city, but it isn't a tech hub, nor is it for everyone. It is the shell of the automotive companies that started to move their operations of out the country in the 50s-70s. Check out the book "Origins of the Urban Crisis" to get an understanding of the decay in Detroit and other large cities who the Big 3 have abandoned for a profit.
All of my friends that I have brought to the D are always weirded out by how big the city is, yet how few people you actually see outside of the entertainment district. The streets and sidewalks can be fully empty, with a 6 lane road that has so many holes that it is more pothole than road now.
This piece is nothing but an advertisement for Dan Gilbert.
The causes of the decline of Detroit's population are complex, not something that can be distilled in an HN comment honestly. But the idea that no one left Detroit willingly is not correct. I know people who did, even interviewed someone who said their family left due to simple racism: a Black family moved to their neighborhood so they left. Of course, in many cases choices could be weighted by other things like, say, you wanted to purchase a house but couldn't get a mortgage in the city due to extensive redlining but could easily get one in the suburbs.
In many cities, building trades were essentially white only into the 80s. (I've heard pretty awful stories about the carpenter's union in town into the 90s too. Explicit statements of no Blacks allowed.) This was on purpose. Automotive unions were nearly as bad.
So a baffled, "What? How can Unions be racist?" seems disingenuous.I don't think racism is inherent to unions, or that a tech workers union would even be likely to be racist against Indian people. But a blanket denial seems like trying to gaslight people.
Through a system called Red-Lining in the mid-20th century, which the federal government actively facilitated [2], banks refused to lend to any residents of neighborhoods with even a few residents who were of 'undesireable' races, including of course, blacks. This wasn't a conspiracy theory; it was all done in the open. Consequences:
1) Even for whites happy to integrate: A few black families move in, credit dries up, nobody can sell or improve their homes, and your housing values plummet.
2) And even worse for blacks: Imagine trying to buy a house without credit. Now imagine doing that coming from the rock-bottom financial circumstances imposed on most blacks in the mid-20th century.
3) Blacks who did obtain homes couldn't get home improvement loans, resulting in deterioration of their homes and a reputation among whites for not caring about their properties.
4) The effect on supply and demand: It forced a very large and growing number of black residents into a small, artificially limited number of rentals (they could only live in certain neighorhoods, remember), driving up rental rates and driving down the quality of their residences (landlords could fill their properties without doing maintenance). Even more perversely, even if someone would sell them a house, blacks had to pay more than whites for the same house - the black bidder had far fewer options. Again, remember the people in the worst financial circumstances were the ones facing these problems.
Back then bankers said the same thing: They are bad credit risks.
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[1] The Origins of the Urban Crisis:Race and Inequality in Postwar Detroit by Thomas J. Sugrue: A prize-winning scholarly history. Highly recommended; it changed dramatically how I understood racial issues and urban development (http://press.princeton.edu/titles/10233.html)
[2] It was called 'red-lining' because the Federal Home Loan Association (I think I have the right agency) would literally draw red lines around these neighborhoods and identify them to banks as the worst possible credit risks.
A good source on this topic is Thomas Sugrue's "The Origins of the Urban Crisis".
The Origins of the Urban Crisis: Race and Inequality in Postwar Detroit is the first book by historian and Detroit native Thomas J. Sugrue in which he examines the role race, housing, job discrimination, and capital flight played in the decline of Detroit. Sugrue argues that the decline of Detroit began long before the 1967 race riot. Sugrue argues that institutionalized and often legalized racism resulted in sharply limited opportunities for African Americans in Detroit for most of the 20th century. He also argues that the process of deindustrialization, the flight of investment and jobs from the city, began in the 1950s as employers moved to suburban areas and small towns and also introduced new labor-saving technologies. The book has won multiple awards including a Bancroft Prize in 1998