Can Detroit become the Motor of the U.S. again?

Can Detroit become the Motor of the U.S. again?
Can Detroit become the Motor of the U.S. again?


By Alexandros Sainidis

On a corporate level, we c may say with a certain degree of confidence that Elon Musk serves as a symbol of U.S. automobile industry and mobility in general, if we add SpaceX into the equation. Due to the celebrity status of Musk, we are quite forgetful of U.S. auto industry’s historical picture – and that is Detroit. The biggest city in Michigan is the victim of U.S. trade policies, which essentially migrated factories to China, eradicating jobs for Americans and increasing inequality in favor of employers and manufacturers. Interestingly, though, the census shows that the population of the city now rose from 631,366 to 633,218 (Williams, Schneider, 2024). Though it may seem as an inconsequential number, for the United States this reversal has a substantial symbolic value. 

Detroit was a piece of American industrial pride, where the heavy industry, vehicle production, thrived. Detroit also turned into a symbol of decline as factory production was moved to China, with its cheap labor and lower environmental standards. At that point China was not perceived as a subject that inspired fear but rather an ecosystem that served capitalism for cheap goods. The problem? Factories were closing in Detroit, resulting in a decrease of jobs in Detroit and the U.S. in general, causing internal movements of the population for economic reasons. This is one of the factors that led to the decrease of the population in the first place. Since then, Detroit has been crying for help, mostly through pop-culture, movies and rap.

Hence, a reversal of the trend seems to be sending a hopeful message. The mayor made quite a few bold statements that highlight the feat, unachieved by previous mayors (Bosman, 2024): “City leaders have long promised to reverse Detroit’s long decline in residents brought on by the shrinking of the auto industry, flight to the suburbs and municipal bankruptcy.” The title of the New York Times says “At last” but honestly, it feels like the author meant to say “Miraculously”.

More interestingly, the mayor expressed the connection between the city and the nation (Williams, Schneider, 2024): “The city of Detroit has joined the communities in America that are growing in population according to the Census Bureau. For our national brand, it was critically important for the Census Bureau to certify us as growing.

Of course, all mayors exaggerate the importance of their cities and the importance of them for a nation. On the other hand, it is important to create harmony between a city, a state and a federation, creating ripples of unity and productivity. In this case, there is no exaggeration. Indeed Detroit is representative of the U.S. and the importance of it increases along with the rise of China as the number two power. Now that China is a threat to the United States, making Detroit great again is not about reversing absolute decline but reversing decline relative to China.

This is further confirmed by president Biden’s choice to host meetings with Indo-Pacific trade ministers in Detroit (Overly, 2023). The United States are self-aware; they know their vulnerabilities. And it is a positive display of maturity to recognize the losses, attempting to correct them. People are concentrating too much on either gains or losses, depending on where they stand politically. For an overextended superpower, however, this is about the balance – an accountant’s point of view – where addressing the losses is equivalent to preserving gains. That is until a certain point where new gains are needed. Debt is the most tangible bleeding point but innovation and infrastructure also need to be prioritized. Detroit might be the Motor City but every cog needs to be oiled.

References

Bosnan J. (2024, May 16). At Last, Detroit Sees Population Grow, New Estimates Show. The New York Times. Retrieved from: https://www.nytimes.com/2024/05/16/us/detroit-growth-census.html

Overly S. (2023, May 25). Biden is using Detroit to sell his vision for the global economy. It’s also showcasing the pitfalls. Politico. Retrieved from: https://www.politico.com/news/2023/05/25/biden-trade-ministers-detroit-00098902

Williams C., Schneider M.  (2024, May 16). Census Bureau estimates: Detroit population rises after decades of decline, South dominates growth. Associated Press. Retrieved from: https://apnews.com/article/detroit-us-census-population-1f1f2ef32a46d4310e95dfc5e9c5a2c4

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