DETROIT 1974-2000

http://olddetroit.tumblr.com/post/31297774341/detroit-grand-prix

Arab-Israeli War – Syria and Egypt attack Israel OPEC – Organization of Petroleum Exporting Countries (mostly

Middle Eastern countries) Profound impact on Detroit as consumers switched to smaller,

more fuel-efficient cars like the Japanese made. Oil went from $1.80 per barrel in 1970 to $34 in 1979 (about $100 today)

Car sales dropped from 11.5 million in 1973 to 8.6 million in 1975 (imports rose to 18% of total). Detroit’s unemployment rate reached 18%.

Big 3 had few small cars in the design phase. Ford Pinto and Chevy Vega were among the first U.S. small cars, but suffered from reliability issues. Imports averaged 22 mpg, but American cars averaged 13 mpg.

Caused world economic recession Cost of fuel affects all of Michigan’s industries:

automobiles, agriculture, and tourism

1973 ARAB OIL EMBARGO

First black mayor of Detroit. Most white voters had backed Mr. Young's opponent, John F. Nichols, a white former Police Commissioner, who lost by a slim margin. The proportion of black officers rose to more than 50 percent in 1993 from less than 10 percent in 1974 Ren Cen and Hart Plaza built in 1977Confrontational, sometimes racist style but in 1979 was named by fellow mayors as one of the most effective. He received a lot of federal funds prior to Reagan in 1981.

Worked with well Gov. William Milliken Succeeded by Dennis Archer, a former state supreme

court justice

COLEMAN A. YOUNG (1974-1993)

''He embodies all the things that a lot of black people can't be themselves -- tough, combative, confrontational. He will tell white people off in a minute. That's reassuring to a lot of black people.''

http://www.nndb.com/people/393/000032297/

Disappeared in 1975 from the Machus Red Fox restaurant in Bloomfield Hills

Former president of the Teamsters Union, who was convicted in 1964 of jury tampering, fraud, and conspiracy in mishandling a union benefit fund.

In 1975, he was poised to regain presidency of the Teamsters over Frank Fitzsimmons. He was allegedly threatening to expose secrets about Fitzsimmon’s mob connections and the union benefit funds.

Hoffa’s foster son, Chuckie O’Brien, was leading suspect, with Hoffa’s hair, blood, and skin samples in his car

In 1983, he was declared legally dead. James Hoffa, Jr. became president of Teamster in

late 90s

JIMMY HOFFA

http://www.freeinfosociety.com/article.php?id=37

Largest freighter when launched in 1958, and the largest to sink on the Great Lakes

Sank on November 9, 1975 with 35’ waves with gusts up to 95 mph

Likely cause was faulty hatch covers that let water come in

The William Clay Ford tried to rescue. The Pilot House is at the Dossin Great Lakes Museum.

EDMUND FITZGERALD

http://blogs.fox11online.com/2010/11/09/35-years-since-the-edmund-fitzgerald-shipwreck/edmund-fitz/

http://whyfiles.org/shorties/067shipwreck/http://detroithistorical.org/dossin-great-lakes-museum/exhibitions/signature-exhibitions/william-clay-ford-pilot-house

Football star at U-M, lived in Grand Rapids, law degree from Yale, served in Navy in WWII.

Republican minority leader for 12 years in the House, so selected to replace Nixon after VP Spiro Agnew resigned too.

Gave unconditional pardon to Nixon immediately which was widely criticized. Unemployment dropped from 9.2% to 6.8%, and inflation went from 12% to 5%

Détente with Soviets, and peace talks in Middle East started

Dems swept 1974 midterms, but Ford vetoed 37 bills.

April 1975 – Saigon falls to NVA Ford beat CA Governor Ronald Reagan for

Republican nomination in 1976, but lost to Democrat Jimmy Carter

GERALD R. FORDhttp://www.biography.com/people/gerald-ford-9298683

1955 - City-County building opens 1956 – Ford Auditorium opens 1960 – Cobo Hall opens 1965 – “New” Pontchartrain Hotel opens 1977 – Renaissance Center opens (Henry Ford II) 1987 – People Mover starts

DETROIT BUILDS

Ford Auditorium was demolished in 2011. The DSO moved to its former home in Orchestra Hall in 1995.

Cobo Hall was named for Mayor Albert Cobo (1950-57). He was City Treasurer from 1935-1949. Cobo lost to Williams in 1956 for governor. He died in office of a heart attack.

http://criticaldetroit.org/buildings/ford-auditorium/

http://www.findagrave.com/cgi-bin/fg.cgi?page=gr&GRid=7450388

http://www.61thriftpower.com/autoshow.shtml

http://www.emporis.com/building/colemanayoungmunicipalcenter-detroit-mi-usa

By 1979, average worker’s wages in Detroit, Flint, and Saginaw were highest in the U.S.

CAFÉ (Corporate Average Fuel Efficiency) raised in 1975 to 18 mpg by 1978 and 27.5 mpg by 1985.

Nationally, economy struggled under stagflation in late 1970s and early 1980s (high unemployment and high inflation) under Democratic President Jimmy Carter. Inflation in 1979 was 13.3%, Interest Rate was 15.5%, and unemployment was 6 %.

MICHIGAN REBOUNDS 1976-1979

THE RENAISSANCE CENTER (1977)

Detroit Marriott is the tallest, all-hotel skyscraper in the Western Hemisphere. It is 73 stories, surrounded by four 39-story office buildings

Towers 500 and 600 (21 stories) added in 1981

John Portman of Atlanta was the architect.

GM bought in 1996 for $80 million ($14/sq. ft.), then GM did a $500 million renovation in 2004, adding the Wintergarden.

Total of 5.55 million sq. ft.

Henry Ford II’s 1971 idea was financed mainly by Ford Motor Company ($350 million)

http://whywedoit.net/blog/2013/09/17/quote-about-who-is-responsible/

http://en.wikipedia.org/wiki/John_C._Portman,_Jr.http://en.wikipedia.org/wiki/Renaissance_Center

2.2 million square feet Second tallest building in Michigan

outside of Detroit First tower called the Prudential Town

Center, then four more towers added in 1979, 1983, 1986, and 1989. The Westin Hotel was added in 1987.

SOUTHFIELD TOWN CENTER (1975)

http://en.wikipedia.org/wiki/Southfield_Town_Center

Ayatollah Khomeini takes power in Iran Recession lasted from 1979-1983 Gas went above $1.00/gallon in 1979, and

reached $1.70 at full service pumps ($1.35 at self-service) in 1982

1980 – Japan becomes #1 auto-making country Unemployment reached 17% in March 1982 (2x

the national average 1979-91 – Big Three employment declined

from 480,000 to 300,000

1979 IRANIAN REVOLUTIONhttp://www-personal.umich.edu/~rraham/ayatollah_khomeini.html

Chrysler was in trouble since the 1950s Lee Iacocca was president of Ford from 1970-78,

and became chairman of Chrysler in 1979. Iacocca brought in former Ford execs.

Iacocca got $1.5 billion in federal loans after convincing Feds that 500,000 workers at Chrysler and subsidiaries would be affected

Closed 20 plants and modernized others K-cars introduced in 1980 Chrysler bought American Motors (AMC) in 1987

for $600 million to get Jeep

CHRYSLER BANKRUPTCY

http://www.nndb.com/people/988/000022922/

Chairman and CEO of GM from 1981 to 1990 Bought EDS in 1984 and Hughes Aircraft in

1985 for $8.5 billion Started Saturn in 1985 as joint venture with Retired in 1990, replaced by Robert Stempel,

an engineer, but replaced him in 1992 Was the main subject of Michael Moore's 1989

documentary film Roger & Me. Smith's tenure is commonly viewed as a

failure, as GM's share of the US market fell from 46% to 35%, and it took on considerable debt causing it to lapse close to bankruptcy in the early 1990s

GM AND ROGER SMITHhttp://en.wikipedia.org/wiki/Roger_Smith_(executive)

http://www.michaelmoore.com/books-films/roger-and-me

Economic Slowdown Globalization = free flow of goods and ideas Postindustrial economy = Switch from manufacturing

to service and information jobs as more goods imported from China, Japan (“deindustrialization”)

Outsourcing = foreign workers cheaper “Buy American” slogans largely failed Rust Belt – all Great Lakes states except New York Average hourly wage declined during 1980s Michigan only gained 33,200 new residents during

the decade of the 1980s.

ECONOMY IN TRANSITION IN 1980S

1983-1990 – angered many by balancing budget through a 38% tax increase, but cut back spending too by $225 million, so Michigan was the “comeback state” in 1986 when Blanchard won reelection by largest margin in MI history.

State support of education increased by 50% Narrowly lost to Republican John Engler, majority

leader in the state senate, when recession started in 1990. He dropped very popular 78 year old Martha Griffiths as his lieutenant governor, and his ex-wife, Paula Blanchard, published a book in 1990 about their 1987 divorce.

GOV. JAMES BLANCHARDhttp://www.nga.org/cms/home/governors/past-governors-bios/page_michigan/col2-content/main-content-list/title_blanchard_james.html

St. Julian Winery in Paw Paw is oldest winery

By 1979, Michigan was 4th largest producer

Two areas: SW Michigan and Grand Traverse region

Today, 13th largest wine producing-state, but 4th largest grape-growing state

27 Michigan wines have been rated world class

WINE INDUSTRY EMERGES IN 1970S

http://en.wikipedia.org/wiki/Michigan_wine

In 1980, Flint reached 24% unemployment rate, and tax revenues decreased, so Milliken cut spending

With 17% unemployment in 1982, five Japanese bank s rescued Michigan from collapse by backing $500 million in notes

James Blanchard is governor from 1983-91 Japanese imports continued to erode American

dominance Agriculture declined from 66,000 to 55,000 farms Mining largely ended in the U.P. (see next slide)

MICHIGAN IN THE 1980S

Copper production in early 1950s was 20% of the peak

1966 – Last iron mine in Gogebic range closed

1970 – Calumet and Hecla copper mine closes

1982 – Iron mining on Menominee Range ends

1995 - White Pine Mine copper mine closes

Empire and Tilden iron mines on Marquette Range still operating

Mechanized strip-mining today uses far less workers than underground mining in the past

THE DECLINE OF U.P. MINING

http://lascosasdenestor.blogspot.com/2011/06/aratiri-y-sus-contra-ii-modicacion-del.html

Devils Night arson reaches peak in Detroit (more than 800 fires set in 1984, and 500 to 800 fires in the three days and nights before Halloween in a typical year)

Mayor Dennis Archer declared “Angel’s Night” in 1995, and

Now, about 40,000 volunteers patrol the streets, and fires are down to 170.

Ze’ev Chafets 1990 book, “Devil’s Night and Other True Tales of Detroit” brought national attention to problem. Publishers Weekly called the book, “"An enormously unsettling read and a tragically accurate picture of a dying metropolis."

DEVIL’S NIGHT

http://www.mlive.com/news/detroit/index.ssf/2012/10/angels_night_volunters_gear_up.html

http://www.northjerseyfireimages.com/Fires-in-DetroitMI/2008-Detroit-Devils-Night/i-H84vN4j/2/L/DSC_0199a-L.jpg

http://photos.metrotimes.com/tag/detroit/page/3/

http://www.thisis50.com/profiles/blogs/784568:BlogPost:8382461

The murder rate among young blacks in the inner cities quadrupled during a five-year period as gangs battled for control of the lucrative drug trade. School dropout rates soared. Infant mortality began to climb.

Stiff drug laws and increased law enforcement resulted in an explosion of black men being thrown in prison. By 2008 as the epidemic had run its course, 1 in 15 black men over the age of 18 was behind bars.

As a result, where 20% of black children lived with their mother but not their dad in 1960, by 1990 more than 50% were in homes without a father. Today, 72% of black babies are born out of wedlock. Rising for whites, too.

THE CRACK EPIDEMIC OF THE 1980S

Recession in early 1990s gave way to prosperous rest of decade

Detroit called the “Murder Capital” Detroit River Place Inn closes in 1992 after opening

three years earlier. Later reopened as the Omni Detroit Hotel at River Place.

GM closes Willow Run plant in 1992 that it had acquired from Ford in 1953. Later reopened but closed in 2009 bankruptcy.

Dennis Archer served as Mayor of Detroit from 1993 to 2001. Ford Field (2000) and Comerica Park (2002) built during his term.

Archer was reelected by a large margin in 1997, but was subject to a recall campaign in his second term, launched by former Coleman Young supporters. He declined to run for reelection in 2001.

MICHIGAN IN THE 1990Shttp://www.michigan.org/property/omni-detroit-hotel-river-place/

http://www.northstarnews.com/inauguration_09/obama_administration/article/320

JEFFERSON NORTH ASSEMBLY Opened in 1991 Expanded in 1999 and 2008 (now 3 million square feet) Makes the Jeep Grand Cherokee, and starting in 2010, the

Dodge Durango It has 26 miles of conveyor belts, and 600 robots 4,663 employees In Sept. 2012, one man stabbed and killed a co-worker and

then committed suicide on Belle Isle with a gunshot wound.

http://detroit.cbslocal.com/tag/jefferson-north-assembly-plant/

http://www.mlive.com/auto/index.ssf/2011/04/two_congressmen_expected_to_to.html

Second tallest building in MI at 619’ (RenCen is tallest)

First major downtown building since RenCen in 1977.

The building is famous for its postmodern architectural design topped with Flemish-inspired neo-gothic spires

Project plans for twin tower, Two Detroit Center proposed directly east of the tower were placed indefinitely on hold. Two Detroit Center parking garage was constructed on the site in 2002

The primary tenant was Comerica Bank until 2012, when Comerica downsized to its 411 W. Lafayette building.

ONE DETROIT CENTER (1993)http://en.wikipedia.org/wiki/One_Detroit_Center

http://en.wikipedia.org/wiki/One_Detroit_Center

Narrowly defeated James Blanchard. Inherited $1.8 billion deficit. Cut way back on government spending, but increased essential services like welfare, education, prisons, and mental health

Eliminated 84,000 recipients from welfare rolls Reduced taxes for businesses and individuals

(property tax freeze, cut small business tax, and eliminate inheritance tax)

By 1993, a record 4.35 million people employed, and MI had $1 billion surplus

Won 61-39% in 1994, and 62-38% in 1998 Charter school act allowed schools to open competing

schools

GOV. JOHN ENGLER (1991-2003)

http://www.nndb.com/people/847/000055682/

SBT (Single Business Tax) – adopted in 1976 to replace corporate income tax and other taxes

Headlee Amendment – adopted in 1978 so that property taxes could not grow faster than the rate of inflation

1994 – Sales tax rose from 4% to 6% when lowered state income tax from 4.6% to 4.4%. State used money to give $5,000 per student for education, eliminating local property taxes as the major source of school funding.

MICHIGAN TAXES

DETROIT VS. SOUTHEAST MICHIGAN

http://www.epa.gov/med/grosseile_site/indicators/population.html

Since 1975, manufacturing jobs have declined as output has increased due to technology replacing humans (productivity per worker has increased). Service industry jobs – finance, government, retail – have increased during this time.

THE DECLINE OF MANUFACTURING JOBS

http://www.allthingsdemocrat.com/2012/08/its-the-economy-stupid-manufacturing/