The Recent Decade
Since the year 2000 Detroit has lost 25% of its population, that’s 200,000 people. In congruence with this drastic loss of population, Detroit’s metropolitan area saw industry cut over 200,000 jobs between 2000 and 2009 (1). Currently, there is an unemployment rate over 14% which puts Detroit far over the average line. In fact, Detroit has a 2% greater unemployment rate than those cities classified as “double trouble” due to suffering losses in both job and population growth. There is no doubt; it has been a tough century thus far for the Motor City. The combined effects of job loss and population loss spelled trouble for the city and have left it abandoned. Of the 200,000 people who exited Detroit in the last decade, half were Caucasian. The exodus of white workers has left the city 80% African American, with the highest rate of black business ownership in America.
The Plan and Current Issues
Detroit has the groundwork for a plan but the current Mayor is already facing pressure from the state that his plan may not be good enough. Threatening the plan is direct intervention from the governor’s office in the form of emergency financial leadership. This recent action has occurred as a result of over 14 billion in liabilities and a 100 million dollar cash shortfall expected in the coming year. Mayor Dave Bing, an accomplished businessman, dismissed the states review, saying that they had already approved the plan. It is unclear what the next step will be, but the Governor of Michigan has thirty days to make a decision. Either allow Detroit to manage itself or take over. Challenges facing Detroit in the economic sector involve increasing job growth, immigration, and education. Detroit has a 47% functional illiteracy rate, which is appalling in today’s society. In addition to problems with the economy, other areas of Detroit’s infrastructure need attention too.
Crime
In dire need of attention is the Detroit Metropolitan Police force. The force has not seen any raises since 2000, and this under-funding has led to rampant crime in the city. The Wayne County DA, who has jurisdiction over Detroit, recently released information about 10,000 unsolved and untested rape kits that are stored in the evidence vaults. The city, facing a huge murder problem is looking to cut pay for the police force by 10% in the near future.
Housing
Detroit officials have said that there is nearly forty square miles of vacant land within the city. This is almost equivalent to the size of San Francisco and is equal to a third of the size of Detroit itself.
Click the link to see a video of Detroit as it is today: Detroit Wildlife
Budget
In addition to outside influences, the city faced corruption from within from the Mayor. Mayor Kwame Kilpatrick has been indicted and jailed for multiple instances of corruption. One case in which Kilpatrick awarded a billion dollar sludge removal contract was fraught with rumors of bribes. In addition, Kilpatrick laundered state funds to his wife. He also used the city’s credit account without being responsible for over 150,000 dollars in charges. His corruption, although relatively minor, leads to the logical conclusion that he was not doing his job. It is no wonder that 25% of the population left. Faced with unemployment and a government with no accountability, the young Detroit workforce took off for greener pastures, ironically similar to those Detroit is now trying to create. The city now faces 40 billion in liabilities and a 100 million fiscal debt in June.
Employment
The job loss can be attributed to the Great Recession and the severe economic strain that faced American car manufacturers. Not only were car companies affected, however. The companies and industries that support the car manufacturing business also suffered as a result of this hardship. Steel manufacturers as well as rubber and plastic producers suffered from decreased demand and were forced to make cut backs. The white population in Detroit was most impacted, and since most of them were of young enough age to start over, that is what they did. Since 2000, over 100,000 white people have left the Detroit area, making up for half of the city’s population loss in that time period. The exodus of white workers has left the city 80% African American, with the highest rate of black business ownership in America. Challenges facing Detroit in the economic sector involve increasing job growth, immigration, and education. Detroit has a 47% functional illiteracy rate, which is appalling in today’s society.
Since the year 2000 Detroit has lost 25% of its population, that’s 200,000 people. In congruence with this drastic loss of population, Detroit’s metropolitan area saw industry cut over 200,000 jobs between 2000 and 2009 (1). Currently, there is an unemployment rate over 14% which puts Detroit far over the average line. In fact, Detroit has a 2% greater unemployment rate than those cities classified as “double trouble” due to suffering losses in both job and population growth. There is no doubt; it has been a tough century thus far for the Motor City. The combined effects of job loss and population loss spelled trouble for the city and have left it abandoned. Of the 200,000 people who exited Detroit in the last decade, half were Caucasian. The exodus of white workers has left the city 80% African American, with the highest rate of black business ownership in America.
The Plan and Current Issues
Detroit has the groundwork for a plan but the current Mayor is already facing pressure from the state that his plan may not be good enough. Threatening the plan is direct intervention from the governor’s office in the form of emergency financial leadership. This recent action has occurred as a result of over 14 billion in liabilities and a 100 million dollar cash shortfall expected in the coming year. Mayor Dave Bing, an accomplished businessman, dismissed the states review, saying that they had already approved the plan. It is unclear what the next step will be, but the Governor of Michigan has thirty days to make a decision. Either allow Detroit to manage itself or take over. Challenges facing Detroit in the economic sector involve increasing job growth, immigration, and education. Detroit has a 47% functional illiteracy rate, which is appalling in today’s society. In addition to problems with the economy, other areas of Detroit’s infrastructure need attention too.
Crime
In dire need of attention is the Detroit Metropolitan Police force. The force has not seen any raises since 2000, and this under-funding has led to rampant crime in the city. The Wayne County DA, who has jurisdiction over Detroit, recently released information about 10,000 unsolved and untested rape kits that are stored in the evidence vaults. The city, facing a huge murder problem is looking to cut pay for the police force by 10% in the near future.
Housing
Detroit officials have said that there is nearly forty square miles of vacant land within the city. This is almost equivalent to the size of San Francisco and is equal to a third of the size of Detroit itself.
Click the link to see a video of Detroit as it is today: Detroit Wildlife
Budget
In addition to outside influences, the city faced corruption from within from the Mayor. Mayor Kwame Kilpatrick has been indicted and jailed for multiple instances of corruption. One case in which Kilpatrick awarded a billion dollar sludge removal contract was fraught with rumors of bribes. In addition, Kilpatrick laundered state funds to his wife. He also used the city’s credit account without being responsible for over 150,000 dollars in charges. His corruption, although relatively minor, leads to the logical conclusion that he was not doing his job. It is no wonder that 25% of the population left. Faced with unemployment and a government with no accountability, the young Detroit workforce took off for greener pastures, ironically similar to those Detroit is now trying to create. The city now faces 40 billion in liabilities and a 100 million fiscal debt in June.
Employment
The job loss can be attributed to the Great Recession and the severe economic strain that faced American car manufacturers. Not only were car companies affected, however. The companies and industries that support the car manufacturing business also suffered as a result of this hardship. Steel manufacturers as well as rubber and plastic producers suffered from decreased demand and were forced to make cut backs. The white population in Detroit was most impacted, and since most of them were of young enough age to start over, that is what they did. Since 2000, over 100,000 white people have left the Detroit area, making up for half of the city’s population loss in that time period. The exodus of white workers has left the city 80% African American, with the highest rate of black business ownership in America. Challenges facing Detroit in the economic sector involve increasing job growth, immigration, and education. Detroit has a 47% functional illiteracy rate, which is appalling in today’s society.