This article is from the public number:Earth Knowledge Bureau (ID: diqiuzhishiju), author: yogurt foam did, from the title figure: vision China

On July 18, 2013, Detroit, the “City of Cars,” officially filed for bankruptcy protection, becoming the largest bankrupt city in US history. This book isThe symbol of the US manufacturing industry and the city of pride, which was plagued by high crime rates, high unemployment, high vacancy rates, and high debts, was once rated as the “most miserable city” in the United States.

It seems to only make people think of abandoned factories, and dogs

(Image from shutterstock)▼

Now, Detroit has been bankrupt for five years, but many well-known media such as Fortune and Forbes have begun to call Detroit the “next Silicon Valley.”

How did the old industrial city in the northeast of the United States bottom out and become a super new city?

Day Detroit

In 1796, Detroit joined the United States of America and officially established the city through urban planning in 1815.

Before joining the United States, Detroit belongs to the United Kingdom;

Before the UK, Detroit was actually a city founded by the French;

(Antoine de Lamothe-Cadillac)

(Image from shutterstock)▼

A few decades after the establishment of the city, the United States ushered in a period of great development in the railway, shipbuilding and shipping industries. Later, it seems that it was a bubble period, but it actually left the United States with the world’s first railway foundation, and a large number of modern industrial infrastructure, which benefited a large number of American cities to complete the original accumulation.

A large-scale railway construction that the United States crossed the Pacific Ocean in the past;

Equivalent to China’s high-speed rail construction today;

The biggest benefit is the cities on the south shore of the Great Lakes, especially Chicago;

(U.S. Utah Railway Viaduct, circa 1876)

(Image courtesy of wikimedia@Charles Roscoe Savage)▼

The close proximity to the Great Lakes region, the ability to connect the industrial city of the Lake District with Detroit in the Mississippi River Basin, has been pushed to the forefront of history and became the most important transportation hub in the Northeast. Coupled with the local rich iron ore resources, the company’s own steel industry has also emerged and expanded into the developed automotive industry.


If Chicago is the hub between American things;

So Detroit is more like a hub inside the Great Lakes;

The Detroit River passing through the city connects Lake Huron with Lake Erie ▼

After Henry Ford produced the world’s first car belonging to ordinary people in the Detroit factory in 1896, the T-car, Detroit’s car empire dream opened.

The assembly line is definitely a major invention for Americans;

The way people serve the machine really releases the productivity of the machine;

(Image from wikimedia)▼

In the 1930s, Detroit’s car production accounted for 80% of the US and 70% of the world; during the Second World War, the auto industry’s prosperity reached its peak. At this time, in order to attract workers, car companies began to provide benefits including medical insurance, and GM also took the lead in creating a modern enterprise.Old gold system.

The real military order is an important reason for industrial expansion;

Many of the automakers at the time were involved in the manufacture of military equipment;

(Chrysler and the official Detroit Tank Factory)

(Image courtesy of wikimedia@U.S. Army TARDEC photo)▼

Under the temptation of job opportunities and welfare systems, a large number of blacks in the South also entered the city to look for work. The blacks employed by the Detroit auto industry accounted for 15% of the total number of workers.

How many large ethnic groups are pouring into the city;

also causes a lot of racial problems;

Even if the federal government forces enter the city to solve the problem;

(1943 Detroit Race Riot)

(Image courtesy of wikimedia@Arthur S. Siegel)▼

Along with industrial prosperity, the city of Detroit expanded rapidly. In the 1950s, Detroit’s population reached a peak of 1.85 million.

Detroit in 1942, as if there is already a CBD

(Image courtesy of wikimedia@Arthur Siegel, FSA-OWIl)▼

However, over-reliance on the auto industry, as well as high welfare spending, also laid the groundwork for the city’s future decline.

Detroit began to decline since the 1960s. On the one hand, the racial opposition under the civil rights movement became more and more acute, and blacks and whites often had bloody conflicts, and whites fled a lot from Detroit. Whites are better than blacks in terms of economic strength and education. As a result, talents are lost and urban taxes are hit hard. On the other hand, the rise of the Japanese and European automotive industries has also squeezed the global automotive market, and the Detroit auto industry has shrunk.

The pursuit of rights requires real-world soil on the one hand;

On the one hand, the awakening of ideas is required;

When African Americans awaken as a group concept;

itsNature and meaning are completely different from striving for economic benefits;

(Martin Luther King Jr. at the Civil Rights Movement in Washington)

(Image courtesy of wikimedia@Rowland Scherman)▼

In the near future, the oil crisis broke out, and Americans who were overwhelmed by high oil prices were increasingly inclined to choose low-cost, energy-efficient Japanese cars. The latter quickly occupied the US market, and the Detroit auto industry suffered losses for the first time. Ford, for example, between 1978 and 1982, annual car sales fell by about 47%, and the glory of the car’s big brother is finally over.

The oil crisis is terrible, but the oil used is still used;

This time, the more fuel-efficient Japanese car is very advantageous;

(Image courtesy of wikimedia@National Archives at College Park)▼

More and more factories are closing in the 1970s and 1980s;

The foundation of the city is gradually shaken;

(Image from shutterstock)▼

The Detroit government did not think about the rescue. Several transformation attempts have not been successful. But the leadership is not discouraged, even in the increasingly difficult 90s, they believe that as long as Detroit’s automotive industry is still there, the renaissance is not a big problem. However, it is counterproductive.

The luxury and prosperity of this city;

After all, it is built on the wealth of the automotive industry;

Even if blood transfusions continue, it is still difficult to establish a new advantage;

(Detroit Landmark – Renaissance Center)

(Image from shutterstock)▼

Since entering the 21st century, Detroit has not experienced a rapid rise in the unemployment rate. In addition to the 2008 financial crisis, the three major auto companies in the core manufacturing industry have laid off 140,000 people. In 2009, the unemployment rate in Detroit City has reached 20%, which is 12.4 percentage points higher than the US average.

US unemployment rate from 1892 to 2016;

2008 is really the new peak after the 80s, it is difficult in the United States;

(Image courtesy of wikimedia@Ewan McGaughey)▼

The work is gone, the population is moving a lot, and the tax base is getting thinner. In 2010, the population of Detroit was only 714,000, a decrease of 61.4% from the end of the 1950s. From 2002 to 2012, the income of the main tax property tax and income tax decreased by 37% and 17.6% respectively.

But while fiscal revenues have fallen sharply, Detroit’s fiscal spending has not decreased, and the bulk of the expenditures are welfare expenditures that companies have been unable to afford – pensions and health care for a large number of retirees. This balance of payments led to a high Detroit fiscal deficit, reaching $327 million in 2012.

There is debt restructuring, no success, then application for bankruptcy

(Image from wikimedia@RFC1394)▼

In 2013, Detroit’s total long-term and short-term debts were estimated to exceed $18 billion. It also faced ongoing cash flow problems and was unable to perform its debt-servicing functions. It had to file for bankruptcy protection with the Federal Bankruptcy Court in accordance with the Bankruptcy Law. .

A city is bankrupt, and where is its future better?

This is the fourth largest city in the United States, and the future?

(Sculpture “Detroit Spirit”)

(Image from shutterstock)▼

Eve of dawn

After the bankruptcy was declared, Detroit experienced more than a year of debt restructuring. On November 7, 2014, the Bankruptcy Judge of the US Federal Bankruptcy Court approved Detroit’s debt adjustment plan, which meant the end of the Detroit City Bankruptcy proceedings; December 11, 2014: The Detroit City Council officially declared its departure from bankruptcy.

In this reorganization plan, there are two main points.

One is to restructure external financing. In the next 10 years, Detroit will invest $1.7 billion to dismantle damaged old buildings and improve public safety.System-wide, comprehensively improve the city’s public transportation system, rehabilitate the city’s information technology system, and strengthen public services in the urban sector.

These old and broken industries, I don’t know how much they can sell together

(Image from shutterstock)▼

In order to dispel the concerns of creditors and investors during the financing period, the Michigan State Government has also established a special committee to oversee the Detroit City financial supervision and has the right to veto any investment and financing plan proposed by the City of Detroit.

The second is the treatment of pension insurance and retirees’ medical insurance. After the Detroit City and the retirees committee and other creditors negotiated, the reorganization plan to retain 95.5% to 100% of pensioners for retirees, and also set up a special trust to ensure medical insurance for retirees. The source of money comes from the support of Michigan, charitable organizations and the Detroit Museum of Art, and on the other hand is a permanent charity trust set up by the world-class exhibits of the Detroit Museum of Art.

The Detroit Museum of Art (DIA) can be preserved in bankruptcy;

Maybe the biggest luck in the city;

(Image from shutterstock)▼

By bankruptcy, the Detroit government was relieved of $7 billion in debt. Detroit can focus on rebuilding.

Reconstruction is a long process, after all, Detroit needs more repairs.

More than half of the city’s remaining 700,000 people live below the poverty line; the crime rate is high, and it has been rated as “the most dangerous city” several times. It faces robbery when driving in the city. Dangers; due to lack of funds, street lights are also unable to repair, 40% of urban street lights have been damaged; public services are rampant, more than half of parks have been closed since 2008, and one-third of ambulances in the first half of 2013 Unusable; the city still left nearly 100,000 abandoned houses, just like a “ghost town”…


It seems to be a good fit for American haunted house movies;

(Abandoned Old House in Detroit Suburbs)

(Image from shutterstock)▼

But Detroit is not incurable. The city’s splendid “heritage” is quite rich:

No shortage of talent. Its state, Michigan, has 37 universities, more than 90,000 engineers, 375 R&D centers, 63 top 100 suppliers in North America, and 12 automotive assembly plants. Proper strategy is easy to attract people.

A line of murals about the assembly line of the Detroit Museum of Art (DIA);

…. A long-standing automotive culture?

(Image from shutterstock)▼

Two unnamed companies. Despite the bankruptcy, the Detroit area is still home to nearly 20 of the world’s top 500, including the eighth-ranked General Motors and the tenth Ford.

However, because the Detroit government is facing huge financial challenges, it is not good to look at the investment of citizens, businesses and charities.

“Detroit Spirit” statue and the Renaissance Center (General Headquarters) behind

(Party has not gone yet, indicating that there is confidence in the city)

(Image from shutterstock)▼

All the societyDetroit

Detroit spent the first big money after bankruptcy on repairing a broken street lamp that was widely criticized.

The Detroit Public Lighting Bureau issued $185 million in bonds and purchased 64,500 bright and energy-efficient light street lights. After replacing the broken lights, Detroit people are no longer afraid to go the night. Economics The “broken window effect” will not appear in this city, and the appearance of the city will be completely new.

Light gives confidence, and confidence is the foundation of economic vitality;

United States-Detroit at night- Ambassador Bridge-Canada-Windsor;

The two cities are separated by a river, the left side of the bridge is Canada-Windsor;

(Image from shutterstock)▼

Following is another large public program, the 6,000-square-meter large sports and entertainment district of Olympia Entertainment Development. The project is centered on the $450 million project “Little Caesars Stadium” and plans to invest $200 million in the construction of apartments, restaurants, offices, parks and shops in 45 to 50 blocks in the city centre.

The Renaissance Center from the Detroit River;

To “Little Caesars Arena”;

Can you find “Little Caesar Stadium” in the picture?

(basemap from google map)▼

The subsequent urban construction is still supported by a wave of investment.

In transportation, the Qlink arrangement of the Litch family’s rapid transit system is connected to the city center and the new center (IBio), which will accommodate 500 researchers and staff The Michigan Humanitarian Association occupies 5 acres of land and built a $15.5 million animal care park in 2016…

BRT Qline

(Image from shutterstock)▼

The three giants of the car industry also have actions. For example, Ford Motor plans to help transform Michigan Central Station, GM has invested heavily in car plants in Detroit and surrounding areas, Chrysler mostRecently said it will build a $1.6 billion production facility in Detroit (seems to be for itself).

is a large historical monument in Detroit;

records the city’s brilliant memories of the industrial age;

(Image from shutterstock)▼

The former railway hub, now covered with shrubs

(Michigan Central Station)

(basemap from google map)▼

The power of the individual is also contributing to the revitalization of Detroit.

NBA Cleveland Cavaliers’ big boss Dan Gilbert (Dan Gilbert) is a key figure in the revival of Detroit. As the founder of Quicken Loans, the largest mortgage lender in the United States, and the native of Detroit, he decided to move the company headquarters to his hometown in 2010. After Detroit declared bankruptcy, it invested about 5.6 billion dollars in urban construction for about 100 properties, making it the largest investment individual.

Good children in Detroit, returning to their hometown after success

(Image courtesy of wikipedia@Cleveland Cavaliers)▼

The Regal Buffett also said that Detroit has great potential to invest $250 million in Detroit during the global stock market downturn in 2015; some Hollywood actors and NBA stars have also invested in Detroit. In this way, it is quite like the Chinese people who used to say “investment is not Shanhaiguan” in recent years.

A few years have passed and Detroit has revived.

The small Caesar Arena held a ribbon-cutting ceremony on September 5, 2017, followed by several competitions; however, the actual cost has been much higher than the budget, reaching nearly 900 million US dollars, and the rest of the convenience facilities are also promised. Just stopped at the level of imagination; Qline was opened for public use on May 12, 2017; a new development led by Dan Gilbert completely changed the face of downtown Detroit: his corporate network employed 17,000 employees in Detroit. The property has more than 100 buildings in Detroit, most of which are located in the city centre.


Detroit skyline on the Detroit River line;

Although you can still feel the strong sense of American metropolis in the 1980s;

(Image from shutterstock)▼

The Midtown area in the north of the city centre (New Center) is also in full swing. Henry Ford Hospital has been expanded to include a cancer center; the Detroit Pistons team is also building new offices and driving ranges there; various apartment buildings have sprung up.

Detroit’s original downtown and new center

(basemap from google map)▼

The vitality of the street is gradually recovering. The main road of Woodward Avenue (Woodward Avenue) has changed from a desolate scene five years ago, not only to shops, but also to frequent The auto show event, such as “Dream Parade”, reminds people of the city’s status as a car. The oldest neighborhood, Corktown (Corktown) has gradually moved closer to fashion streets in the past few years…

Qline along Woodward Avenue

(Image from shutterstock)▼

The restoration of the city can also be explained by data.

The median household income in Detroit increased from $24,820 in 2013 to $30,344 in 2017; in 2018, the unemployment rate reached a minimum of 7.2%, the lowest level since bankruptcy.

However, it should not be too happy now.

Detroit’s revival is concentrated in the downtown area, unevenly developed, and remains one of the poorest cities in the United States. About 38% of the population live in poverty, with median income and the state’s average. There is still a big gap. Social security also has a lot of room for improvement. After all, relying on the rapid recovery of investment is difficult to change the perception of talent in this city in the short term.

But this is only 5 years. In the next 5 years, this old industrial city in the United States may not be able to renew its vitality.

References:

https://www.npr.org/2018/12/28/680629749/out-of-bankruptcy-detroit-reaches-financial-milestone

Bankruptcy News: “Detroit after bankruptcy, meeting the future in the intersection of cars and art”

https://detroit.curbed.com/maps/biggest-developments-in-detroit-transform

https://datausa.io/profile/geo/detroit-mi/#about

This article is from the public number: Earth knowledge Bureau (ID: diqiuzhishiju) , author: yogurt did not foam