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  • Essay / Detroit and the Bay Area - 744

    For decades, America was the fastest growing economic country in the world, and Detroit was one of the most populous cities in the United States . In the 1930s, Detroit was the fastest growing city, but today it is the fastest declining city, with more than 100,000 abandoned homes (Heidi Ewing and Rachel Grady). Likewise, the Bay Area economy was the envy of the nation with high employment rates and GDP growth like Detroit's in the 1930s, and is currently suffering from losses of jobs, residents and of status. Detroit and the Bay Area are unique resource-based industries - where Detroit is dominated by manufacturing and the Bay Area is dominated by high technology. However, the Bay Area will not go bankrupt and become a ghost town in fifty years, because its wide diversity of economic opportunities attracts people to stay and work here. Highly qualified and talented people are fundamental to the economic development of cities. . In Detroit, many auto industry workers are either unskilled or low-skilled workers with only a high school diploma, simply because these jobs do not require special talents or skills to perform the work. Due to the division of labor, large jobs are broken down into many tiny pieces. “Under this regime, each worker becomes an expert in an isolated area of ​​production, thus increasing his efficiency” (Adam Smith). Detroit was not creating suitable jobs for the highly skilled or professional people who could work there; This therefore caused a brain drain. Brain drain, by definition, means “the departure of educated or professional people from one country, economic sector, or field to another, usually for better wages or better living conditions (Merriam Dictionary Webster). This means that high skills ... middle of paper ...... cars. According to Nancy Andrews, Christopher Kirkpatrick, and Eric Millikin, "Detroit went on a spree starting in the 2000s to plug budget holes and build infrastructure, more than doubling its debt to $8 billion in 2012." Detroit was borrowing money to build this infrastructure that is not capable of doing anything other than building cars; Therefore, while other countries have found other ways to make cheap cars and sell their cars at a lower price, Detroit cannot lower the prices of their cars due to their construction loans. infrastructure. However, the Bay Area will not go bankrupt because it is not in debt. In contrast, the Bay Area generates revenue, with total revenue reaching $6,670.6 million in 2013. Additionally, the Bay Area expects to generate revenue of $276.92 billion over the next next twenty-eight years (Bay Area Plan).).