Detroit’s Failing Economy and How to Fix It

Detroit is often said to be a “joke” on the internet. Jokes about it’s failing economy and the high crime rates due to this declining economy. Televised sports events such as the NFL even choose to show one part of the particular city and call it beautiful, causing the internet to react with mockery of the statement.

With a lot of the problems Detroit faces can the city be brought back to life and held even as high as say New York City, yes, and there’s some ways to do this, but all require the local, and possibly state governments to step in.

Due to the auto industry becoming more and more international rather than just Ford or other domestic automobiles, Detroit’s dependent economy has began to decline. For the city to recover, it must begin to move away from a dependent economy set on one product. How is this done? Well expansion on companies. The city and state governments need to reach out to more big companies to set up in parts of the city that need business. To first grow economy you must start creating businesses and companies for people to work. This is how you make the lower levels of the city gain wealth, the outskirts and other parts of the city that need the flow of economy to work its magic.

Secondly, have the state possibly raise the minimum wage. Will this cause products to be more expensive? Yes, possibly. Currently the minimum wage for Michigan is $8.50 per hour. If the minimum wage is raised to say, $10, wage workers would begin to have more wealth and thus afford to take care of themselves as well as any taxes. The broken window theory is basically Detroit at this moment, to make the broken window theory work for you you need to fix the windows, how do you fix windows? Money. With a combination of both of these things and make business an important factor in the city, such as Austin, L.A., or New York City, the city will grow just as those cities have.

The city will come back to being the major business city it once was, my ideas are just ideas, but the local and state governments must do something or the city might be totally lost.

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