More From Detroit
But American cities have faced similar situations before, and have come out alive - and thriving.“It's not uncommon at all,” UM's Grimes said. “If you go back to the late 1960s early 1970s, the situation was reversed between Boston and Detroit.”
Grimes said Boston was heavily dependent on a manufacturing base that began to shrink as it transitioned to other low-cost regions.“They looked very much like Michigan, and the role was exactly reversed, and of course they made the transformation to the knowledge economy,” he said.
Comerica's Johnson says the model for him is Pittsburgh and the collapse of the steel industry that made way for a knowledge-based economy founded on higher education, health care and high-tech industries. (emphasis added)
“That's probably where we're heading, (but) it will be far easier to get there if the auto industry returns,” he said.Economists agree that while the next months, and possibly years, will undoubtedly be difficult for the region, Detroit will still be the Motor City.
“It will still be the largest single concentration of motor vehicle activity in the United States, there's no question about that — it will just be a lot smaller,” Grimes said.
and speaking of Detroit... The Greektown casino is in the news today because it is running out of cash.