Crossposted with TomDispatch.com
From Detroit to the Amazon
The empire ends with a pull out. Not, as many supposed a few years ago, from Iraq. There, as well as in Afghanistan, we are mulishly staying the course, come what may, trapped in the biggest of all the "too-big-to-fail" boondoggles. But from Detroit.
Of course, the real evacuation of the Motor City began decades ago, when Ford, General Motors, and Chrysler started to move more and more of their operations out of the downtown area to harder to unionize rural areas and suburbs, and, finally, overseas. Even as the economy boomed in the 1950s and 1960s, 50 Detroit residents were already packing up and leaving their city every day. By the time the Berlin Wall fell in 1989, Detroit could count tens of thousands of empty lots and over 15,000 abandoned homes. Stunning Beaux Arts and modernist buildings were left deserted to return to nature, their floors and roofs covered by switchgrass. They now serve as little more than ornate bird houses.
In mythological terms, however, Detroit remains the ancestral birthplace of storied American capitalism. And looking back in the years to come, the sudden disintegration of the Big Three this year will surely be seen as a blow to American power comparable to the end of the Raj, Britain's loss of India, that jewel in the imperial crown, in 1948. Forget the possession of a colony or the bomb, in the second half of the twentieth century, the real marker of a world power was the ability to make a precision V-8.
There have been dissections aplenty of what went wrong with the U.S. auto industry, as well as fond reminiscences about Detroit's salad days, about outsized tailfins and double-barrel carburetors. Last year, the iconic Clint Eastwood even put the iconic white auto worker to rest in his movie Gran Torino. Few of these postmortems have conveyed, however, just how crucial Detroit was to U.S. foreign policy -- not just as the anchor of America's high-tech, high-profit export economy, but as a confirmation of our sense of ourselves as the world's premier power (although in linking Detroit's demise to the blowback from President Nixon's illegal war in Laos, Eastwood at least came closer than most).
Detroit not only supplied a continual stream of symbols of America's cultural power, but offered the organizational know-how necessary to run a vast industrial enterprise like a car company -- or an empire. Pundits love to quote GM President "Engine" Charlie Wilson, who once famously said that he thought what was good for America "was good for General Motors, and vice versa." It's rarely noted, however, that Wilson made his remark at his Senate confirmation hearings to be Dwight D. Eisenhower's Secretary of Defense. At the Pentagon, Wilson would impose GM's corporate bureaucratic model on the armed forces, modernizing them to fight the Cold War.
After GM, it was Ford's turn to take the reins, with John F. Kennedy tapping its CEO Robert McNamara and his "whiz kids" to ready American troops for a "long twilight struggle, year in and year out." McNamara used Ford's integrated "systems management" approach to wage "mechanized, dehumanizing slaughter," as historian Gabriel Kolko once put it, from the skies over Vietnam, Laos, and Cambodia.
Perhaps, then, we should think of the ruins of Detroit as our Roman Forum. Just as Rome's triumphal arches still remind us of its bygone imperial victories in Mesopotamia, Persia, and elsewhere, so Motown's dilapidated buildings today invoke America's fast slipping supremacy.
Among the most imposing is Henry Ford's Highland Park factory, shuttered since the late 1950s. Dubbed the Crystal Palace for its floor to ceiling glass walls, it was here that Ford perfected assembly-line production, building up to 9,000 Model Ts a day -- a million by 1915 -- catapulting the United States light-years ahead of industrial Europe.
It was also here that Ford first paid his workers five dollars a day, creating one of the fastest growing and most prosperous working-class neighborhoods in all of America, filled with fine arts-and-crafts style homes. Today, Highland Park looks like a war zone, its streets covered with shattered glass and lined with burnt-out houses. More than 30% of its population lives in poverty, and you don't want to know the unemployment numbers (more than 20%) or the median yearly income (less than $20,000).
There is one reminder that it wasn't always so. A small historical-register plaque outside the Ford factory reads: "Mass production soon moved from here to all phases of American industry and set the pattern of abundance for 20th Century living."
America in the Amazon
To truly grasp how far America has fallen from the heights of its industrial grandeur -- and to understand how that grandeur led to stupendous acts of folly -- you should tour another set of ruins far from the Midwest rustbelt; they lie, in fact, deep (and nearly forgotten) in, of all places, the Brazilian Amazon rainforest. There, overrun by tropical vines, sits Henry Ford's testament to the belief that the American Way of Life could easily be exported, even to one of the wildest places on the planet.
Ford owned forests in Michigan as well as mines in Kentucky and West Virginia, which gave him control over every natural resource needed to make a car -- save rubber. So in 1927, he obtained an Amazonian land grant the size of a small American state. Ford could have simply set up a purchasing office there, and bought rubber from local producers, leaving them to live their lives as they saw fit. That's what other rubber exporters did.
Ford, however, had more grandiose ideas. He felt compelled to cultivate not only "rubber but the rubber gatherers as well." So he set out to overlay Americana on Amazonia. He had his managers build Cape Cod-style shingled houses for the Brazilian work force he hired. He urged them to tend flower and vegetable gardens and eat whole wheat bread, unpolished rice, canned Michigan peaches, and oatmeal. He dubbed his jungle town, with suitable pride, Fordlandia.
It was the 1920s, of course, and so his managers enforced alcohol Prohibition, or at least tried to, though it wasn't a Brazilian law, as it was in the United States at the time. On weekends, the company organized square dances and recitations of the poetry of Henry Longfellow. The hospital Ford had built in the town offered free health care for workers and visitors alike. It was designed by Albert Kahn, the renowned architect who built a number of Detroit's most famous buildings, including the Crystal Palace. Fordlandia had a central square, sidewalks, indoor plumbing, manicured lawns, a movie theater, shoe stores, ice cream and perfume shops, swimming pools, tennis courts, a golf course, and, of course, Model Ts rolling down its paved streets.

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Khrushchev once threatened to "bury" us, but the Soviet Union fell first. Now it looks like China may be the one who will "bury" the US. They will bury us under a mountain of cheap commodities, they will shove them down our throats so hard we will choke to death on them. Khrushchev wasn't too far wrong, after all.
I live and work in Detroit, Michigan. Michigan bears the greatest burden in light of recent events concerning the automotive industry companies. Unemployment was already a major problem here and now it is worse. Now that the federal government, via taxpayer money, are majority stakeholders in General Motors, I feel that the engineering and mass-production/assembly resources at GM and Chrysler can and should be used to help design and implement comprehensive mass-transit systems like high speed rail, light rail, alternative-fuel buses for use both regionally and nationwide. Were not the auto factories refitted during World War II to build tanks and such? The American auto industry’s backyard of Michigan would be great to start pilot projects connecting cities with 21st century transit systems.
Public Transit systems help to lessen the overall fuel emissions made by the vehicles we drive. It helps both urban and rural residents, children, the elderly, the disabled, and those who currently can't afford their own vehicle meet family, work and school obligations. Seniors, children and the disabled also benefit from the travel flexibility. It would be a means of bolstering America’s workforce and go a long way toward strengthening the economy. In the midst of public debate on what GM’s restructuring means, there is a missed opportunity not being explored. The auto companies historically had not supported mass transit if only because it theoretically detracts from their revenue. A governmental “hands off” mantra is not the proper approach to this unprecedented situation.
This is fascinating. I applaud Ford for paying high wages. There's really no other way to have a system like we have unless people are getting paid a lot. What we need now, though, is mass transit everywhere. It would solve so many problems. Not the least of which is our dependence on oil and combustion engines--an inefficient and outdated form of propulsion. Cars are great, and we love cars, but perhaps we can integrate some kind of car-like mass-transit system. Imagine a setup that is so efficient that you never have to stop at a red light again, safe enough to travel at very high speeds. We shouldn't stop having pride in our ingenuity--it's just time to take it to the next level.
Ford paid higher wages because he had 300% turnover at his factories with the old wage scale. He also cut jobs at the same time and starting sub-contracting a lot of his work to reduce costs.
He also believed that to create a market for his product his employees needed to be able to afford them - he is quoted saying as such on many occassions.
his turnover problem went away almost overnight with his higher wages. perhaps the fast food joints and retailers could learn a lesson about that.
yes he did subcontract with other automotive suppliers been going on since the dawn of the industry - you work with suppliers who have cthe apacity, expertise or technology you need. even with that subcontracting Ford still maintained one of the most vertically integrated industrial complexes the world had ever seen and still more so than his competitors - this is also the basis of the so called Toyota production system which is modelled on the Ford system
This web site has a really in-depth archive of Detroit Ruins.
http://onlyndetroit.com/
^^^^^^
Check it out, lot of great photos.
There was a show on the History Channel about this, iirc. Interesting stuff.
Thank you for the "Fordlandia" history. I had never heard that before. What strikes me is that the US had all the needed resources for cars at home, and so the high wages became a workable pattern. However, the developments exactly in transportation have undermined it.
Still, the loss of a dominant position in world auto manufacturing is the best argument I know that the American model of corporate management has failed. Detroit would still prosper had the Orient and Europe not built better cars than the Big 3.
And the failure of corporate management now contributes to the decline across the board. Yes, our advantages give us some leads still in technology and drugs. But those will succumb, as shown currently in the financials industry, to the elitism of top-down rewards. So all will go the way of the auto industry until the corporate elite is forced to change.
US cars rank as good or in the case of Ford better in quality than most of the japanese brands, and way higher than the european brands who often rank near the bottom in quality
detroits current woes, and the industry in general has more to do with wall streets melt down, bad management decisions, and the collapse of middle class buying power resulting from wage stagnation and increased costs for fuel food, medical, local taxes utilities and so forth reulting from years of bad economic and trade policy
Anyone who drives a European car knows that it is much higher quality than an American car, no matter what some magazine says. People in urban areas simply don't want American cars, which are more accepted and prevalent in rural America.
Saying we should focus on building automobiles now would be like saying we should have focused on railroads and telegraphs in the 1930s.
Relative to the rest of the world, the US has been in decline for decades. The country has about a fifth of world income now compared with a half in the 1950's. Part of the change is natural, as Europe and Asia had suffered in World War II. Part of it is self inflicted as it is easier to build a big army and borrow from Asians to enhance living standards rather than fix the difficult problems causing the country to become less competitive. Without the role of the dollar as a reserve currency allowing the government to print money, US living standards would plummet. The end is near folks, but it will make America a better place.
The US hasn't been in decline. In the 1950s, the developed world outside the US was still in shambles from the war and the undeveloped world was still... undeveloped. The US has a smaller percentage of world income now because the rest of the world recovered from the war and developed. If any country has been in decline, it's Japan, which has stagnated since about 1989-1990. And Germany stagnated through the 1990s because of unification, while the US boomed the entire decade. Plus, living standards in the US are dramatically higher now than in the 1950s. Back then, our urban centers were in decay across the country, there were serious housing shortages, and poverty was rampant in rural areas, particularly in the South. None of those things are true today.
where to begin
times were different whesreas SOME of the conditions you cite existed, there are new and different issues today -
stagnation f wages, job losses housing foreclsoures -bank failures the more comparable times to tady would be the depression not the 50s
by every measure the US mfg economy boomed from the 50s to the 70s when it was ended by the oil embargo, war debt and increase in M3 supply stagflation
Germany is the third largest exporter i the world - and they do it with higher wages, higher taxes and higher social costs than the US
"Ford preached with a pastor's confidence his one true idea: ever increasing productivity combined with ever increasing pay would both relieve human drudgery and create prosperous working-class communities, with corporate profits dependent on the continual expansion of consumer demand. "High wages," as Ford put it, to create "large markets." By the late 1920s, Fordism -- as this idea came to be called -- was synonymous with Americanism, envied the world over for having apparently humanized industrial capitalism. "==============================
An idea the right and the supply siders and gloablists simply can not comprehend
that to build sustainable economies you have to have a workforce that can afford the products and services they produce
The workforce can already afford the products and services they produce, and can so easily. About Ford, note that increased wages to reduce the 300%+ turnover per year of the workforce in this factories, so the wage increases weren't done just to make the labor force happy. It also should be noted that Ford opposed FDR militantly on unionization, plus Ford began to sub-contract large portions of his work in the 20s and 30s to reduce costs.
Yes and his turnover problem stopped almost overnight when he raised his wages
Ford fought unionization becaue he already paid his workers better than his competitors
subcontracted work to US suppliers - and still had the most vertcally integrated production and supply system - the model for the so called Toyota production system
Everything in the US is bigger and better organized... that includes utter failure.
:-)
Considering that in the 1930's the U.S.A. had plenty of mineral resources, lots of trained-and-regimented manpower, millions of productive family farms, factories that were practically new, and more than 90 percent left of the greatest petroleum reserve anywhere in the world and we still ended up with a great depression I'm not very optimistic at this point.
In the 1920s and 1930s farms were going out of business left and right. Anyway, the problem in the 30s was poor monetary policy and the collapse of the financial system, which we will avoid them time around, and poor governmental policy which limited growth for the rest of the decade, resulting in 10 years of continually high unemployment. I don't think the American people will allow the poor policies of the 30s ever be enacted again.
you stll believe this revisionist stuff?
While it's true that Detroit has been a dying city for the past 20 years, it's also true that New York City, Miami, the DC metro area, Las Vegas, Phoenix, and many cities in California have been growing at incredible rates. There are so many new high rises in the Miami area that it's ridiculous. And there are so many McMansions and new urban developments in DC and Phoenix and Cali in past years that it is incredible. And so many hotels and casinos in Vegas. New York City was a terrible place in the 1970s but has been thriving unbelievably in the past 25 years. And Atlanta has expanded wildly too. And Dallas and Houston and Austin in Texas etc. etc. All this is just a transfer of wealth from one section of the country to another.
Dream on ... those buildings in Miami, FL, are empty ... and worthless.
There is over-capacity, no doubt. And it's true that many condo buildings are mostly investor owned with many units empty, but there is still strong demand to live in the Miami area, and the over-capacity will be worked off in time. These buildings are beautiful and to say they're worthless is laughable. Once uncertainly fades from the economy and demand picks back up, these buildings will fill up quickly. Many of them are even moving now, although due to foreclosures and short sales - but they're moving nonetheless, and inventories will be worked off and they'll be many happy new owners with panoramic ocean views and close proximately to the incredible night life, services, and beaches.
nearly every city I travel to all over the country has vacant office and industrial space - all built on spec due to the real estate bubble
so exactly what jobs and industries will fill these properties?
And what of all these half vacant strip malls that have popped up everywhere - what stores will fill them?
I have millions of square feet of empty industrial real estate to show you around here... built by foolish developers waiting for... Godot?
indeed KTM
lots of vacant and half vacant commercial and industrial property here too
The transfer of wealth that counts is the trade deficit now over $700 billion/year. A lot is oil. We made the Middle East rich and contributed to the expansion of Islam, not all bad maybe, and problems with terrorism. (I gloss over the problem of Israel.)
Then there is our "free trade" policy. There is no free trade. Our competition has industrial policies (we don't ). Japan targeted the auto industry. Still does. It supported domestic makers while keeping foreign cars at bay in the crucial period of fast market growth. This was done by a thousand cuts from tax policies to restrictions on investment and inability to get good dealerships and on and on. Korea followed and now China. We let our industry (and big oil) block strict environmental standards and mileage goals (or taxing gas). Guess which industries are doing best? The ones which worked with their governments on standards rather than being obstructionist.
Then there is our problem with health care. The GOP, some Dems, and the health insurance industry are trying to make sure that American manufacturing continues to be penalized.
The only way we will get out of it is to decide to eliminate the trade deficit and do it. Finance is not the answer. It is part of the problem. And it is better to make something and have skills and tech than to just buy.
Yes - you mention our MASSIVE payments each year for OIL - Our addiction to OIL is also one of the prime motivators & enablers for our CORPORATE led quest for EMPIRE, OIL & EMPIRE go hand in hand.
Getting off OIL, will be a big step toward ENDING EMPIRE!
Detroit "MADE THINGS"!
New York, Miami, DC, Phoenix, etc. have all become versions of Las Vegas, "gambling" on stocks, housing & the service of EMPIRE.
Las Vegas the supposed "Capitalist Utopia", is quickly becoming the NEW Detroit! Massive layoffs & the one of the highest home foreclosure rates in America.
America has been on the UNSUSTAINABLE road of EMPIRE for decades, allowing our "manufacturing base" to be traded for MILITARY BASES & now the sign up ahead says - DEAD END!
Indeed ... who in his right mind would invest in a city, Las Vegas, whose only premise for being is to get people to lose money. Where does that lead?
It just doesn't make sense.
We are way back, way back, in getting up to par with Europe, Japan and other Asian tigers.
Hitler said he would win the war if he could bomb detroit
The fall of Detroit follows from choosing the automobile as the transportation paradigm for the US. Why should everyone have to pay, say, $25K for a car - plus upkeep, repairs and gasoline - just to get around? It has drained our resources, created inefficient housing patterns (the suburbs), wrecked the cities, dictated a huge investment in the military to protect our sources of oil and automobiles kill 40,000 people a year.
The failure to build a first-class mass transit network in this country has required that too much of our resources be spent on inefficient ways to move people.
That is why Detroit is failing.
Cars were the only industry we had left. No industry = no economy = 1% in gold castles, 99% living in tents. It's the raw form of neo-classic "two-class" economics that Federalists have been savoring for since FDR built the Middle Class.
Smug Americans are finally starting to realize that the demise of the big-3 was bound to take the rest of the country down too...but it's too late.
America died of complications of apathy mixed with ignorance,...time of death:....
That's nonsense. We have plenty of solid, profitable industries. Look at chemistry, pharmaceuticals, electronics, home supplies, IT, software. One could almost say that it is ONLY the US automobile industry that is suffering from its own hubris. Everyone else is doing just fine.
Indeed ... the automobile industry is so ingrained in the culture that it is going to take more than one generation to get into the more productive and efficient mode: rail.
Fascinating. I didn't know that about Cotton Mather. The whole discussion reminds me of a passage in Thorstein Veblen's "The Captain of Industry":
"The moral excellence and public utility of the [captain of industry] are no more to be doubted today than the similar excellence and utility of the princely establishment and priestly ministrations which drained the resources of the the population in an earlier and ruder age... for in the 19th century the captain of business became, in the popular apprehension, a prince-priest after the order of Melchizedech, holding the primacy in secular AND spiritual concerns."
In other words, like priests of the old cults, Captains of Industry think they and they alone interpret the Organon, that they alone know what God wants for humanity, and we Americans are only too happy to believe them.
The automobile & the industrial might it spawned, became the vehicle of American consciousness, reflecting our culture, our economics, our politics, our never ending greed & ultimately our "religion" of corporate PROFIT & military STRENGTH, taking us all, on down the unholy road of EMPIRE!
Detroit shows us what the future of our insane quest for EMPIRE will continue to look like, more so with each passing day!
Our pursuit of EMPIRE is becoming every Americans "Fordlandia" - doomed to be consumed my a world that has little tolerance for unchecked hubris, mind-numbing stupidity & American CORPORATE Mullahs that care far too much about PROFITS & far too little about PEOPLE!
Hopefully, our new, young, intelligent, mixed race president can help lead America away from the white mans folly & the disaster that awaited Fordlandia & Detroit, to a new world that values PEOPLE, "all" people over CORPORATE PROFITS!
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