U.S. Economic Activity Split in Half: Look at Detroit (Atlanta: 2014, mortgages)

[magellan]

Originally Posted by Indentured Servant

I think it was a permutation to come up with precisely half of GDP. Adding Atlanta and Denver to the list would be more than half of GDP.

The map maker should have gone down this list and stopped at the halfway dollar point:

List of U.S. metropolitan areas by GDP - Wikipedia, the free encyclopedia

Detroit would still be on there. But it would make more sense. It's just like those income disparity graphs: 18 metro areas out of hundreds make up half the country's GDP.

[Retroit]

You can make up any map you want and post it on the internet. This isn't the Encyclopaedia Britannica.

[newdixiegirl]

Originally Posted by Arthur Digby Sellers

Why? Do people in Silicon Valley fret that technology is their only industry?

Well perhaps not, but there might be good reasons why not:

* Has there been as severe an economic decline in the Silicon Valley as there has been in Detroit?

* While all industries have peaks and valleys of success, does Silicon Valley have a similar history of repeated patterns of intense growth followed closely and inevitably by steep, widely-destructive nosedives?

* Has there been an exodus out of Silicon Valley/Northern California similar to Michigan's?

* Are there comparable rates of (long-term) unemployment in Silicon Valley?

* Has there been a huge devaluation of housing values in Silicon Valley resulting in a significant segment of the home-owning population being "underwater" on their mortgages? Have people lost their homes or been unable to sell them without taking significant losses?

We need to stop being ashamed of being the motor capitol of the world and get back to embracing it.

I've never heard anyone say that Detroiters should be "ashamed" of being the motor capitol, or that they should somehow reject the industry. Why would they?

There is NO doubt that Michiganders should be proud of their major city's history. But they still must continue to diversify Detroit's economy.

[Indentured Servant]

Originally Posted by Retroit

You can make up any map you want and post it on the internet. This isn't the Encyclopaedia Britannica.

[adams_aj]

Atlanta and Denver ARE on the map! They're part of the "other" component of GDP.

[magellan]

Originally Posted by Retroit

You can make up any map you want and post it on the internet. This isn't the Encyclopaedia Britannica.

Ha! True dat.

[magellan]

Originally Posted by newdixiegirl

Well perhaps not, but there might be good reasons why not:

* Has there been as severe an economic decline in the Silicon Valley as there has been in Detroit?

* While all industries have peaks and valleys of success, does Silicon Valley have a similar history of repeated patterns of intense growth followed closely and inevitably by steep, widely-destructive nosedives?

* Has there been an exodus out of Silicon Valley/Northern California similar to Michigan's?

* Are there comparable rates of (long-term) unemployment in Silicon Valley?

* Has there been a huge devaluation of housing values in Silicon Valley resulting in a significant segment of the home-owning population being "underwater" on their mortgages? Have people lost their homes or been unable to sell them without taking significant losses?



I've never heard anyone say that Detroiters should be "ashamed" of being the motor capitol, or that they should somehow reject the industry. Why would they?

There is NO doubt that Michiganders should be proud of their major city's history. But they still must continue to diversify Detroit's economy.

Maybe not as bad as Detroit, but yes there has been a huge shift in economic activity in San Jose (Silicon Valley). The San Jose MSA lost about 50,000 jobs from 2009 - 2010. It also had a trough from 2003 - 2006 of about 70,000 jobs lost. It's regained those jobs but I think it has lost a lot of its luster as a tech hub.

The Washington DC metro area derives about 70% of its economy from government related work, and it's one of the wealthiest and fastest growing metros in North America. No one suggests that they should diversify.

Not to say Detroit shouldn't diversify, but it should happen organically (and I think it is happening). It shouldn't be at the expense of the automotive and automotive technology industries. Obviously from the map Detroit is in some good company (a high GDP producing economy). It's just putting out record economic activity using fewer people than before (it's GDP in 2013 was up to an all time high).

[aoletsgo]

Originally Posted by Retroit

You can make up any map you want and post it on the internet. This isn't the Encyclopaedia Britannica.

Well yes of course, anyone can make something and they are free to post it on the internet.
Similarly, someone can look at that posting and criticize their shoddy, biased product.

[Cliffie]

Originally Posted by Arthur Digby Sellers

Why? Do people in Silicon Valley fret that technology is their only industry?

Focus on your core strengths. There is no reason why any automaker - foreign or domestic - would not want to locate major operations here.

There must be reasons. Jennifer Granholm practically got down on her knees and begged Honda to open their new plants in Michigan while she was still in office. They decided on somewhere else. people usually just say "it's because unions are strangling the state," but it may be something entirely different for all I know. Anyone?

[animatedmartian]

Originally Posted by Cliffie

There must be reasons. Jennifer Granholm practically got down on her knees and begged Honda to open their new plants in Michigan while she was still in office. They decided on somewhere else. people usually just say "it's because unions are strangling the state," but it may be something entirely different for all I know. Anyone?

Unions aren't necessarily strangling the state. It's supposedly that companies don't invest as much money because much more has to go to worker wages and benefits. Unionized workers are are paid higher than non-union workers.

Below is an estimated value of the total average hourly wages and benefits for auto workers in 2011
Ford: $58
GM: $56
Toyota: $55
Chrysler: 52$
Honda: $50
Nissan: $47
Hyundai: $44
Volkswagen: $38
Source: Center for Automotive Research, Ann Arbor


Volkswagen has reported that it's US sales haven't been doing so well and that they also plan on expanding production. Currently in Tennessee, Volkswagen is trying to propose a '"workers' council" which is what the have in Europe. A workers' council is basically like a union, except it's created by the company and limits the workers' ability to strike. The UAW is trying to get in there to unionize the workers.

However, the Republicans of Tennesse, obviously, are very against the union. They've given a lot of incentives for Volkswagen and fear that the company or other companies won't expand in Tennesse if the unions prevail. Interestingly, VW hasn't said that they're anti-union. Even more interestingly, a few Republicans have threatened to not give incentives to VW if they unionize. Biting the hand that feeds you much?


In my biased opinion, I don't think unions really effect the economy as much as they limit how much money goes directly into the pocket of politicians. I'm pretty sure the state gets more off of the taxes generated from new investment rather than the wages generated by the workers. For Michigan, I'd be more in favor of trying to diversify the state's economy rather than trying to incentivize one specific industry.