http://olddetroit.tumblr.com/post/31297774341/detroit-grand-prix
DETROIT 1974-2000
1973 ARAB OIL EMBARGO
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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
COLEMAN A. YOUNG (1974-1993)
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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 1977
Confrontational, 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
''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/
JIMMY HOFFA
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http://www.freeinfosociety.com/article.php?id=37
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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
EDMUND FITZGERALD
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.
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http://detroithistorical.org/dossin-great-lakesmuseum/exhibitions/signatureexhibitions/william-clay-ford-pilot-house
http://whyfiles.org/shorties/067shipwreck/
http://blogs.fox11online.com/2010/11/09/35-yearssince-the-edmund-fitzgerald-shipwreck/edmund-fitz/
http://www.biography.com/people/gerald-ford-9298683
GERALD R. FORD
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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
DETROIT BUILDS
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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
http://www.emporis.com/building/colem
anayoungmunicipalcenter-detroit-mi-usa
http://www.findagrave.com/cgibin/fg.cgi?page=gr&GRid=7450388
http://criticaldetroit.o
rg/buildings/fordauditorium/
Ford Auditorium was
demolished in 2011. The
DSO moved to its former
home in Orchestra Hall in
1995.
http://www.61thriftpower.com/autoshow.shtml
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.
MICHIGAN REBOUNDS 1976-1979
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 %.
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THE RENAISSANCE CENTER (1977)
http://whywedoit.net/blog/2013/09/
17/quote-about-who-is-responsible/
Henry Ford II’s 1971 idea was financed mainly by Ford
Motor Company ($350 million)
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
Total of 5.55 million sq. ft.
GM bought in 1996 for $80 million
($14/sq. ft.), then GM did a $500
million renovation in 2004, adding the
Wintergarden.
http://en.wikipedia.org/wiki/John_C._Portman,_Jr.
http://en.wikipedia.org/w
iki/Renaissance_Center
John Portman of Atlanta was the architect.
SOUTHFIELD TOWN CENTER (1975)
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.
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http://en.wikipedia.org/wiki/Southfield_Town_Center
http://www-personal.umich.edu/~rraham/ayatollah_khomeini.html
1979 IRANIAN REVOLUTION
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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
http://www.nndb.com/people/988/000022922/
CHRYSLER BANKRUPTCY
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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
http://en.wikipedia.org/wiki/Roger_Smith_(executive)
GM AND ROGER SMITH
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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
http://www.michaelmoore.com/books-films/roger-and-me
ECONOMY IN TRANSITION IN 1980S
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Economic Slowdown
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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.
GOV. JAMES BLANCHARD
http://www.nga.org/cms/home/governors/pastgovernors-bios/page_michigan/col2-content/maincontent-list/title_blanchard_james.html
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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.
WINE INDUSTRY EMERGES IN 1970S
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
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http://en.wikipedia.org/wiki/Michigan_wine
MICHIGAN IN THE 1980S
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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)
THE DECLINE OF U.P. MINING
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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
http://lascosasdenestor.blogspot.com/2011/06/aratiri-y-suscontra-ii-modicacion-del.html
http://photos.metrotimes.com/tag/detroit/page/3/
DEVIL’S NIGHT
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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."
http://www.thisis50.com/profiles/blogs/784568:Bl
ogPost:8382461
http://www.northjerseyfireimages.com/Fires-in-DetroitMI/2008Detroit-Devils-Night/i-H84vN4j/2/L/DSC_0199a-L.jpg
http://www.mlive.com/news/detroit/index.ssf/2012/10/a
ngels_night_volunters_gear_up.html
THE CRACK EPIDEMIC OF THE 1980S
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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.
MICHIGAN IN THE 1990S
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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.
http://www.michigan.org/property/omnidetroit-hotel-river-place/
http://www.northstarnews.com/inauguration_
09/obama_administration/article/320
JEFFERSON NORTH ASSEMBLY
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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_e
xpected_to_to.html
http://en.wikipedia.org/wiki/One_Detroit_Center
ONE DETROIT CENTER (1993)
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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 Flemishinspired 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.
http://en.wikipedia.org/wiki/One_Detroit_Center
GOV. JOHN ENGLER (1991-2003)
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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
http://www.nndb.com/people/847/0
00055682/
MICHIGAN TAXES
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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.
DETROIT VS. SOUTHEAST MICHIGAN
http://www.epa.gov/med/grosseile_site/indicators/population.html
THE DECLINE OF MANUFACTURING JOBS
http://www.allthingsdemocrat.com/2
012/08/its-the-economy-stupidmanufacturing/
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.