Social crisis in Detroit3: Collapse of an American city

In recent years, impoverishment has spread and deepened as auto industry jobs have been eliminated by the tens of thousands and wages and benefits cut. Between 2000 and 2007, the state of Michigan lost 431,000 jobs, nearly a tenth of its employment. More than a quarter of those jobs were cut in the auto industry, concentrated in the Detroit Metro area. Remaining workers have been subjected to job insecurity and ruthless attack on their wages.

The decimation of auto industry compensationthe standard-setter for pay scale and benefits in many other sectors of industry, as well as the driver of the economy in the regioncombined with cuts to public assistance programs have truly devastated working class living standards.

As the cost of living spirals, thousands of families now face a tremendous financial conundrum.

Poverty is pervasive in Detroit. In 2006, according to the federal Census Bureau, median household income in the city was $29,500. This figure is nearly $20,000 less than the median household income nationwide. Per capita income for the city was only $14,700 in 2006.