Deindustrialization

De-industrialisation is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially heavy industry or manufacturing industry. It is the opposite of industrialisation.

Bethlehem Steel
The Bethlehem Steel plant in Pennsylvania went bankrupt in 2001, and has since been demolished to build the Sands Casino.

Interpretations

There are different interpretations of what de-industrialisation is. Many associate US de-industrialisation with the closing of plants between 1980 and 1990.[1][2] The US Federal Reserve raised interest and exchange rates 1979 to 1984, which automatically caused import prices to fall. Japan was rapidly expanding productivity at that time, and this killed the US machine tool sector. A second wave of de-industrialisation occurred in the US between 2001 and 2009, from which the US did not recover. Some point out that the percentage loss of industrial jobs 2001-2009 exceeded the industrial job loss of the Great Depression. Some attribute the decline of industrial investment to the diversion of business profits to stock buybacks.

Others point to investment in patents rather than in new capital equipment. The opioid epidemic took off during this time period of 21st de-industrialisation.[3] At a more fundamental level, Cairncross[4] and Lever[5] offer four possible definitions of deindustrialization:

  1. A straightforward long-term decline in the output of manufactured goods or in employment in the manufacturing sector.
  2. A shift from manufacturing to the service sectors, so that manufacturing has a lower share of total employment. Such a shift may occur even if manufacturing employment is growing in absolute terms
  3. That manufactured goods comprise a declining share of external trade, so that there is a progressive failure to achieve a sufficient surplus of exports over imports to maintain an economy in external balance
  4. A continuing state of balance of trade deficit (as described in the third definition above) that accumulates to the extent that a country or region is unable to pay for necessary imports to sustain further production of goods, thus initiating a further downward spiral of economic decline.

Explanations

Theories that predict or explain de-industrialisation have a long intellectual lineage. Rowthorn[6] argues that Marx's theory of declining (industrial) profit may be regarded as one of the earliest. This theory argues that technological innovation enables more efficient means of production, resulting in increased physical productivity, i.e., a greater output of use value per unit of capital invested. In parallel, however, technological innovations replace people with machinery, and the organic composition of capital increases. Assuming only labor can produce new additional value, this greater physical output embodies a smaller value and surplus value. The average rate of industrial profit therefore declines in the longer term.

Rowthorn and Wells[7] distinguish between de-industrialisation explanations that see it as a positive process of, for example, maturity of the economy, and those that associate de-industrialisation with negative factors like bad economic performance. They suggest de-industrialisation may be both an effect and a cause of poor economic performance.

Pitelis and Antonakis[8] suggest that, to the extent that manufacturing is characterised by higher productivity, this leads, all other things being equal, to a reduction in relative cost of manufacturing products, thus a reduction in the relative share of manufacturing (provided manufacturing and services are characterised by relatively inelastic demand). Moreover, to the extent that manufacturing firms downsize through, e.g., outsourcing, contracting out, etc., this reduces manufacturing share without negatively influencing the economy. Indeed, it potentially has positive effects, provided such actions increase firm productivity and performance.

George Reisman[9] identified inflation as a contributor to de-industrialisation. In his analysis, the process of fiat money inflation distorts the economic calculations necessary to operate capital-intensive manufacturing enterprises, and makes the investments necessary for sustaining the operations of such enterprises unprofitable.

Institutional arrangements have also contributed to de-industrialisation such as economic restructuring. With breakthroughs in transportation, communication and information technology, a globalised economy that encouraged foreign direct investment, capital mobility and labor migration, and new economic theory's emphasis on specialised factor endowments, manufacturing moved to lower-cost sites and in its place service sector and financial agglomerations concentrated in urban areas.[10][11]

The term de-industrialisation crisis has been used to describe the decline of labour-intensive industry in a number of countries and the flight of jobs away from cities. One example is labour-intensive manufacturing. After free-trade agreements were instituted with less developed nations in the 1980s and 1990s, labour-intensive manufacturers relocated production facilities to third world countries with much lower wages and lower standards. In addition, technological inventions that required less manual labour, such as industrial robots, eliminated many manufacturing jobs.

See also

References

  1. ^ https://www.academia.edu/35530846/Deindustrialization_in_the_Granite_State_What_Keene_New_Hampshire_Can_Tell_Us_About_the_Roles_of_Monetary_Policy_and_Financialization_in_the_Loss_of_US_Manufacturing_Jobs
  2. ^ Robert Forrant (2008) Metal Fatigue.
  3. ^ Kerwin Kofi Charles et al (2018) The Transformation of Manufacturing and the Decline in U.S. Employment∗, National Bureau of Economic Research
  4. ^ Cairncross 1982.
  5. ^ Lever 1991.
  6. ^ Rowthorn 1992.
  7. ^ Rowthorn & Wells 1987.
  8. ^ Pitelis & Antonakis 2003.
  9. ^ Reisman 2002.
  10. ^ Bluestone & Harrison 1982.
  11. ^ Logan & Swanstrom 1990.

Further reading

  • Afonso, A (2005). "When the Export of Social Problems is no Longer Possible: Immigration Policies and Unemployment in Switzerland". Social Policy and Administration. 39 (6): 653–668. doi:10.1111/j.1467-9515.2005.00462.x.
  • Baumol, W J (1967). "Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis". The American Economic Review. 57 (3).
  • Boulhol, H (2004) 'What is the impact of international trade on deindustrialisation in OECD countries?' Flash No.2004-206 Paris, CDC IXIS Capital Markets
  • Bluestone, B.; Harrison, B. (1982). The Deindustrialization of America: Plant Closings, Community Abandonment and the Dismantling of Basic Industry. New York: Basic Books.
  • Brady, David; Beckfield, Jason; Zhao, Wei (2007). "The Consequences of Economic Globalization for Affluent Democracies". Annual Review of Sociology. 33: 313–34. doi:10.1146/annurev.soc.33.040406.131636.
  • Byrne, David. "Deindustrialization and Dispossession: An Examination of Social Division in the Industrial City," Sociology 29#1 (1995): 95– 115.
  • Cairncross, A. (1982). What is deindustrialisation?. pp. 5–17. in: Blackaby, F.; (Ed.). Deindustrialisation. London: Pergamon.CS1 maint: Extra text: authors list (link)
  • Cowie, J., Heathcott, J. and Bluestone, B. Beyond the Ruins: The Meanings of Deindustrialization Cornell University Press, 2003.
  • Central Intelligence Agency. 2008. The CIA World Factbook
  • Feinstein, Charles (1999). "Structural Change in the Developed Countries During the Twentieth Century". Oxford Review of Economic Policy. 15 (4): 35–55. doi:10.1093/oxrep/15.4.35.
  • Fuchs, V R (1968) The Service Economy New York, National Bureau of Economic Research
  • Lever, W F (1991). "Deindustrialisation and the Reality of the Post-industrial City". Urban Studies. 28 (6): 983–999. doi:10.1080/00420989120081161.
  • Goldsmith, M; Larsen, H (2004). "Local Political Leadership: Nordic Style". International Journal of Urban and Regional Research. 28 (1): 121–133. doi:10.1111/j.0309-1317.2004.00506.x.
  • High, Steven (2003). "Industrial Sunset: The Making of North America's Rust Belt, 1969–1984". Toronto. On US and Canada.
  • Koistinen, David. Confronting Decline: The Political Economy of Deindustrialization in Twentieth-Century New England. (University Press of Florida, 2013)
  • Krugman, Paul. "Domestic Distortions and the Deindustrialization Hypothesis." NBER Working Paper 5473, NBER & Stanford University, March 1996.
  • Kucera, D. and Milberg, W (2003) "Deindustrialization and Changes in Manufacturing Trade: Factor Content Calculations for 1978–1995." Review of World Economics 2003, Vol.139(4).
  • Lee, Cheol-Sung (2005). "International Migration, Deindustrialization and Union Decline in 16 Affluent OECD Countries, 1962–1997". Social Forces. 84: 71–88. doi:10.1353/sof.2005.0109.
  • Linkon, Sherry Lee and John Russo. Steeltown USA: Work and Memory in Youngstown (UP of Kansas, 2002).
  • Logan, John R.; Swanstrom, Todd (1990). Beyond City Limits: Urban Policy and Economic Restructuring in Comparative Perspective. Temple University Press. JSTOR j.ctt14bt6br.
  • Matsumoto, Gentaro (1996). "Deindustrialization in the UK: A Comparative Analysis with Japan". International Review of Applied Economics. 10 (2): 273–87. doi:10.1080/02692179600000020.
  • Matthews, R.C.O.; Feinstein, C.H.; Odling-Smee, J.C. (1982). British Economic Growth. Oxford University Press.
  • OECD (2008). Stat Extracts.
  • Pitelis, Christos; Antonakis, Nicholas (2003). "Manufacturing and competitiveness: the case of Greece". Journal of Economic Studies. 30 (5): 535–547. doi:10.1108/01443580310492826.
  • O'Reilly, Jacqueline; et al. (October 2016). "Brexit: understanding the socio-economic origins and consequences (discussion forum)" (PDF). Socio-Economic Review, Special Issue: What is Patient Capital, and Where Does It Exist?. 14 (4): 807–854. doi:10.1093/ser/mww043.
  • Reisman, George (2002). Profit Inflation by the US Government.
  • Doyle, Rodger (May 2002). "Deindustrialization: Why manufacturing continues to decline". Scientific American magazine.
  • Rowthorn, Robert E. (December 1992). "A Review of W. J. Baumol, S. A. B. Blackman and E. N. Wolff, Productivity and American Leadership: The Long View". Review of Income and Wealth. 38 (4): 475–495. doi:10.1111/j.1475-4991.1992.tb00456.x. Pdf.
  • Rowthorn, Robert E.; Wells, J.R. (1987). De-industrialization and foreign trade. Cambridge Cambridgeshire New York: Cambridge University Press. ISBN 9780521263603.
  • Rowthorn, Robert E.; Ramaswamy, Ramana (September 1997). "Deindustrialization – its causes and implications". IMF Working Paper. International Monetary Fund. WP/97/42. Pdf.
  • Rowthorn, Robert E.; Ramaswamy, Ramana (March 1999). "Growth, trade, and deindustrialization". IMF Staff Papers. International Monetary Fund. 46 (1): 18–41. Pdf.
  • Sachs, J D and Shatz, H J (1995) 'Trade and Jobs in US Manufacturing' Brookings Papers on Economic Activity No. 1
  • Thorleifsson, Cathrine (2016). "From coal to Ukip: the struggle over identity in post-industrial Doncaster". History and Anthropology, Special Issue: Overheating: Towards an Anthropological History of the Early 21st Century. 27 (5): 555–568. doi:10.1080/02757206.2016.1219354.
  • Vicino, Thomas, J. Transforming Race and Class in Suburbia: Decline in Metropolitan Baltimore. New York: Palgrave Macmillan, 2008.

Historiography

  • High, Steven (November 2013). ""The wounds of class": a historiographical reflection on the study of deindustrialization, 1973–2013". History Compass. 11 (11): 994–1007. doi:10.1111/hic3.12099.
  • Strangleman, Tim, James Rhodes, and Sherry Linkon, "Introduction to crumbling cultures: Deindustrialization, class, and memory." International Labor and Working-Class History 84#1 (2013): 7–22. online

External links

1987 Italian general election

General elections were held in Italy on 14 June 1987, to select the Tenth Republican Parliament. This election marked the final inversion of the trend of the entire republican history of Italy: for the first time, the distance between the Christian Democrats and the Communists grew significantly instead of decreasing, and this fact was seen as the result of the deindustrialization of the country. The growth of the service sector of the economy, and the leadership of former PM Bettino Craxi, gave instead a new strength to the Socialists. A remarkable novelty was the rise of the new Green Lists, while a new party obtained its first two parliamentary seats: the Northern League.

Balby

Balby is a suburb of Doncaster and civil parish located to the south-west of the borough in the county of South Yorkshire. Historically part of the West Riding of Yorkshire, Balby is within the Doncaster Central constituancy and contains the electoral wards Balby South and Hexthorpe and Balby North.Housing stock ranging from terraced housing nearer to Doncaster town centre and post-war suburbs to the south west. There are several new housing developments, including, Woodfield Plantation which is part of an attempt to regenerate the area following deindustrialization.

Economic activity is still centred on heavy industry, especially around the Carr Hill Industrial Estate, home to Bridon, a large rope manufacturer.

Biscay

Biscay (Basque: Bizkaia; Spanish: Vizcaya) is a province of Spain located just south of the Bay of Biscay. The name also refers to a historical territory of the Basque Country, heir of the ancient Lordship of Biscay. Its capital city is Bilbao. It is one of the most prosperous and important provinces of Spain as a result of the massive industrialization in the last years of the 19th century and first half of the 20th century. Since the deep deindustrialization of the 1970s, the economy has come to rely more on the services sector.

Bryant Electric Company

The Bryant Electric Company was a manufacturer of wiring devices, electrical components, and switches founded in 1888 in Bridgeport, Connecticut, United States. It grew to become for a time both the world's largest plant devoted to the manufacture of wiring devices and Bridgeport's largest employer and was involved in a number of notable strikes, before being closed in 1988 and having its remaining interests sold to Hubbell in 1991.

Deindustrialisation by country

Deindustrialisation refers to the process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially heavy industry or manufacturing industry. It is the opposite of industrialisation. Deindustrialisation has taken place in many nations over the years, as social changes and urbanisation have changed the financial demographics of the world. Phenomena such as the mechanisation of labour render industrial societies obsolete, and lead to the de-establishment of industrial communities.

East Side, Buffalo

The East Side is a large district of Buffalo, New York, and the city's physically largest neighborhood. It is bordered by Main Street to the north and west, I-190 and the Kaisertown neighborhood to the south, and the town of Cheektowaga to the east. Large, ornate 19th-century churches, most of them Roman Catholic, and modest ​1 1⁄2-story wood-frame cottages, often with progressively smaller rear additions that give a telescoping effect, characterize the district. The East Side was once the second largest Polish-American community in the United States. Jefferson Avenue, and the intersection of Broadway and Fillmore, serve as its most heavily used commercial districts.

Deindustrialization and disinvestment in the second half of the twentieth century damaged the East Side more than other Buffalo neighborhoods; much of the Polish community fled to Cheektowaga in that time frame. The current ethnic composition of the East Side is predominantly black. A disproportionate number of the city's vacant and abandoned houses are located here, as are many acres of urban prairie.

Notable destinations include the Broadway Market, St. Stanislaus - Bishop & Martyr Church, St. John Kanty's R.C. Church, St. Adalbert's Basilica, Corpus Christi R. C. Church Complex, Buffalo Central Terminal, the Adam Mickiewicz Library and Dramatic Circle, and the Matt Urban Human Services Center.

Economic reconstruction

Economic reconstruction refers to a process for creating a proactive vision of economic change. The most basic idea is that problems in the economy such as deindustrialization, environmental decay, outsourcing, industrial incompetence, poverty and addiction to a permanent war economy are based on the design and organization of economic institutions. Economic reconstruction builds on the ideas of various institutional economists and thinkers whose work both critiques existing economic institutions and suggests modes of organizing society differently (cf. Veblen, 1998). Economic reconstruction, however, places much more emphasis on the idea of alternative plans and alternative organization.The need for reconstruction occurs as fundamental problems plague the contemporary organization of the economic, political, and even "oppositional" spheres, such as the contemporary organization of social movements. These spheres each tend to support short term solutions that do not leave in their wake the organization of resources and power in a way that is responsive to citizen needs. Power, democracy and critical alternatives are not linked. In contrast to this state of affairs, economic reconstruction supports the creation of new institutions and the redesign of old ones. The basic idea is to create a new way to organize the economy and society so that institutions work for rather than against peoples' interests and needs.

Economy of India under the British Raj

The Indian economy under the British Raj describes the economy of India during the years of the British Raj, from 1858 to 1947. During this period, according to British economist Angus Maddison, India's share of the world economy collapsed from 24.4% in 1700 to 4.2% in 1950. India experienced deindustrialization. Compared to the Mughal Era, India during the British colonial era had a lower per-capita income, a large decline in the secondary sector, and lower levels of urbanisation.

Economy of New England

New England is far from the center of the country, is relatively small, and is relatively densely populated. It was the birthplace of the Industrial Revolution in the United States as well as being one of the first regions to experience deindustrialization. Today, it is the center of education, research, high technology, finance, and medicine.

Economy of Youngstown, Ohio

The economy of Youngstown, Ohio, flourished in the 19th and early 20th centuries, with steel production reaching all-time highs at that time. The steel boom led to an influx of immigrants to the area looking for work, as well as construction of skyscrapers in the area. The city's population peaked at 170,002 in 1930, just at the onset of the Great Depression. World War II also brought a great demand for steel. After World War II, demand for steel dropped off dramatically, and industrial base of Youngstown began to see a decline.

Youngstown's economy has been impacted by a loss of the steel industry jobs which started on September 19, 1977, on what became known to locals as "Black Monday", and continued into the mid-1980s. While the loss of steel industry jobs in the region coincided with the general deindustrialization of Rust Belt cities such as Youngstown as well as the United States as a whole, Youngstown's economic struggles have been well documented. In the Mahoning Valley region, where Youngstown is located, the city's population was halved, while non-industrial businesses were forced to close or relocate due to cascading effects resulting from Youngstown's deindustrialization.

Great Divergence

The Great Divergence is a term made popular by Kenneth Pomeranz's book by that title, (also known as the European miracle, a term coined by Eric Jones in 1981) referring to the process by which the Western world (i.e. Western Europe and the parts of the New World where its people became the dominant populations) overcame pre-modern growth constraints and emerged during the 19th century as the most powerful and wealthy world civilization, eclipsing Medieval India, Qing China, the Islamic World, Joseon Korea, and Tokugawa Japan.

Scholars have proposed a wide variety of theories to explain why the Great Divergence happened, including geography, culture, institutions, colonialism, resources, and "accidents of history". Scholars also trace back the beginning of the Great Divergence to different periods, with many tracing it back to the Industrial Revolution in 18th-century Britain, while others trace it back to earlier periods of Western history, such as the commercial revolution and the origins of mercantilism and capitalism during the Renaissance and the Age of Discovery, the rise of the European colonial empires, proto-globalization, the Scientific Revolution, or the Age of Enlightenment. The "traditional view", sometimes described as a near-consensus view, is that the Great Divergence occurred before the Industrial Revolution, with Western European states surpassing China, Japan and the Middle East by 1750. However, the "revisionist" view of the "California School" estimates that the divergence started around 1800 during the Industrial Revolution. In the twentieth century, the Great Divergence peaked before the First World War and continued until the early 1970s, then, after two decades of indeterminate fluctuations, in the late 1980s it was replaced by the Great Convergence as the majority of Third World countries reached economic growth rates significantly higher than those in most First World countries.Technological advances, in areas such as railroads, steamboats, mining, and agriculture, were embraced to a higher degree in the West than the East during the Great Divergence. Technology led to increased industrialization and economic complexity in the areas of agriculture, trade, fuel and resources, further separating the East and the West. Western Europe's use of coal as an energy substitute for wood in the mid-19th century gave it a major head start in modern energy production.

History of Bridgeport, Connecticut

The history of Bridgeport, Connecticut was, in the late 17th and most of the 18th century, one of land acquisitions from the native inhabitants, farming and fishing. From the mid-18th century to the mid-19th century, Bridgeport's history was one of shipbuilding, whaling and rapid growth. Bridgeport's growth accelerated even further from the mid-19th century to the mid-20th century with the advent of the railroad, Industrialization, massive immigration, labor movements until, at its peak population in 1950, Bridgeport with some 159,000 people was Connecticut's second most populous city. In the late 20th century, Bridgeport's history was one of deindustrialization and declining population, though it overtook Hartford as the state's most populous city by 1980.

Little Burgundy

Little Burgundy (French: La Petite-Bourgogne) is a neighbourhood in the Sud-Ouest borough of the city of Montreal, Quebec, Canada.

Massachusetts Miracle

The Massachusetts Miracle was a period of economic growth in Massachusetts during most of the 1980s. Before then, the state had been hit hard by deindustrialization and resulting unemployment. During the Miracle, the unemployment rate fell from more than 12% in 1975 to less than 3%, which was accompanied by tax reductions and a drastic increase in personal income.

New Great Migration

The New Great Migration is the demographic change from 1965 to the present, which is a reversal of the previous 35-year trend of black migration within the United States. Since 1965, deindustrialization of cities in the Northeastern and Midwestern United States, growth of jobs in the "New South" with lower costs of living, family and kinship ties, and improving racial relations have all acted to attract African Americans to the Southern United States in substantial numbers. As early as 1975 to 1980, several southern states were net African-American migration gainers, while in 2014, African-American millennials moved in the highest numbers to Texas, Georgia, Florida, and North Carolina. African-American populations have continued to drop throughout much of the Northeast, especially from the state of New York and northern New Jersey, as they rise in the South.

College graduates and middle-class migrants make up a major portion of the new migration. For instance, from 1965–2000, the states of Florida, Georgia, and Texas attracted the most black college graduates. The only state outside the former Confederacy that attracted a sizeable migration of black college graduates was Maryland, most of the population growth being in the counties surrounding Washington, D.C. In that same period, California was a net loser of black migration for the first time in three decades. While the migration is still in progress, much data is from this 35-year period.The New Great Migration is not evenly distributed throughout the South. As with the earlier Great Migration, the New Great Migration is primarily directed toward cities and large urban areas, such as Atlanta, Charlotte, Houston, Dallas, Raleigh, Tampa, San Antonio, Memphis, Nashville, Jacksonville, and so forth. Primary destinations are those states that have the most job opportunities, especially Georgia, North Carolina, Maryland, Virginia, Tennessee, Florida, and Texas. Other southern states, including Mississippi, Louisiana, South Carolina, Alabama, and Arkansas, have seen little net growth in the African American population from return migration.

Olde Kensington, Philadelphia

Olde Kensington is a neighborhood located in the Kensington section of Philadelphia, Pennsylvania, United States. Olde Kensington is north of Northern Liberties, south of Hartranft, east of Ludlow, and west of Fishtown. The boundaries of the neighborhood are roughly between Cecil B Moore Ave (north), Girard Ave (south), Front St (east) and 6th St. (west).

After World War II, many neighborhoods in Philadelphia experienced a long period of decline, deindustrialization, and residential abandonment. In recent years, however, Olde Kensington has been increasingly gentrified, following a similar pattern observed in adjacent Northern Liberties and Fishtown. Although some industrial activity has continued along the American Street Corridor, a historic location for heavy industry, a growing number of formerly vacant factories are being turned into lofts, condos, and artistic workspaces.

The zip code for the area is 19122. Also, there are two associations that serve the neighborhood: the Kensington South Neighborhood Advisory Council (KSNAC) and Olde Kensington Neighbors Association (OKNA). KSNAC's community meeting is on the 1st Monday of every month.

Pullman, Chicago

Pullman, one of Chicago's 77 defined community areas, is a neighborhood located on the city's South Side. Twelve miles from the Chicago Loop, Pullman is situated adjacent to Lake Calumet.

The area known as Pullman encompasses a much wider area than its two historic areas (the older historic area is often referred to as "Pullman" and is a Chicago Landmark district and a National Monument. The northern annex historic area is usually referred to as "North Pullman"). The development built by the Pullman Company is bounded by 103rd Street on the North, 115th Street on the South, the railroad tracks on the East and Cottage Grove on the West.

Since the late 20th century, the Pullman neighborhood has been gentrifying. Many residents are involved in the restoration of their own homes, and projects throughout the district as a whole. Walking tours of Pullman are available.

Pullman has many historic and architecturally significant buildings; among these are the Hotel Florence; the Arcade Building, which was destroyed in the 1920s; the Clock Tower and Factory, the complex surrounding Market Square, and Greenstone Church. In the adjacent Kensington neighborhood of the nearby Roseland district is the home of one of the many beautiful churches in Chicago built in Polish Cathedral style, the former church of St. Salomea. It is now used by Salem Baptist Church of Chicago.

In a contest sponsored by the Illinois Department of Commerce and Economic Opportunity, Pullman was one of seven sites nominated for the Illinois Seven Wonders.

Rust Belt

The Rust Belt is a derogatory term for an informal region of the United States that experienced industrial decline starting around 1980. It is made up mostly of places in the Midwest and Great Lakes, though definitions vary. Rust refers to the deindustrialization, or economic decline, population loss, and urban decay due to the shrinking of its once-powerful industrial sector. The term gained popularity in the U.S. in the 1980s.The Rust Belt begins in central New York and traverses west through Pennsylvania, West Virginia, Ohio, Indiana, and the Lower Peninsula of Michigan, ending in northern Illinois, eastern Iowa, and southeastern Wisconsin. New England was also hard hit by industrial decline during the same era. Industry has been declining in the region, which was previously known as the industrial heartland of America, since the mid-20th century due to a variety of economic factors, such as the transfer of manufacturing overseas, increased automation, and the decline of the US steel and coal industries. While some cities and towns have managed to adapt by shifting focus towards services and high-tech industries, others have not fared as well, witnessing rising poverty and declining populations.

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 Detroit blacks for most of the twentieth 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.

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