Can Detroitisation reach Canada too?

[-TSS-]

The American city of Detroit used to be a proud city of car-manufacturing and various other industries. A truly diverse city of various ethnicities.

Unfortunately, the present state of the city looks like this:

http://theeconomiccollapseblog.com/archives/tag/detroit

A completely collapsed city where everyone with means and opportunities has escaped from. The city is today 80% black and an economic basket-case. However, only recently has the Michigan state-government finally clamped down on the city. Their hesitation is purely political. The city is black, the state is white.

When you want to look at the future of many, if even not most, European capital cities, just look at Detroit. I'm sure that not even the most ardent multikulti-lovers can say that Detroit is a success-story. They have to invent other excuses for its sorry state.

Is there any possibility that any Canadian city turns into one like Detroit?

[bush_cheney2004]

....When you want to look at the future of many, if even not most, European capital cities, just look at Detroit. I'm sure that not even the most ardent multikulti-lovers can say that Detroit is a success-story. They have to invent other excuses for its sorry state.

Quite to the contrary, Detroit was most certainly a "multikulti" success story going back to WWI, Great Depression, and WWII boom for war materials and the auto industry. The influx of emigre and southern "black" labour was concurrent with such success. Detroit flourished with booze running from Canada during Prohibition. Conditions today were caused by several socioeconomic factors and very poor (many times illegal) city management. Corruption and graft can take any city down, making the conditions favorable for such rapid decline.

Some may feel that Toronto is already going down this path, but the economic circumstances are very different.

[WestCoastRunner]

I'm not sure if the banking system in Michigan had anything to do with the decline of Detroit (ie business loans, mortgages etc) but here in Canada our banking system is quite solid and one of the best in the world so it's highly unlike this would happen in Canada. In fact, wasn't a Canadian in the banking industry hired by the IMF or some other such organization last year? I can't recall his name.

[bush_cheney2004]

The price to be paid for such a "solid" banking system is the relative lack of capital, which leaves Canadian cities more exposed to foreign investment decisions. This is readily apparent in the auto industry, as southern Ontario has taken some serious hits because of higher labour and energy costs. If Detroit was felled by "white flight", then some Canadian cities could be challenged by the flight of capital to lower cost opportunities.

[WestCoastRunner]

There is also the issue of startup companies having to look elsewhere for funding, specifically to the U.S. Our venture capital industry is quite young compared to the U.S. and startups will continue to look south for investors who have more experience with strategic planning and mentoring. However, this could be good for the U.S., as our entrepeneurs are quite talented, creative, skilled and educated and would ensure a return on their investment.

This makes for a healthy country for venture capitalists to invest in. You just need to check out the startups in Vancouver to verify this.

[On Guard for Thee]

I'm not sure if the banking system in Michigan had anything to do with the decline of Detroit (ie business loans, mortgages etc) but here in Canada our banking system is quite solid and one of the best in the world so it's highly unlike this would happen in Canada. In fact, wasn't a Canadian in the banking industry hired by the IMF or some other such organization last year? I can't recall his name.

Perhaps you are thinking of Mark Carney, the former boss of the Bank of Canada who is now directing the Bank of England.

[WestCoastRunner]

Perhaps you are thinking of Mark Carney, the former boss of the Bank of Canada who is now directing the Bank of England.

Yes, you are right! He was a good catch and comes with solid, highly successful experience and precisely because of our solid banking industry.

[bush_cheney2004]

It's a vicious cycle, as Canada lost most of its large market cap tech companies (like Nortel) and mid-caps are struggling to survive. The investment environment for venture capitalists is not as good as it once was. This leaves the resource based sector carrying more of the load:

http://www.theglobeandmail.com/report-on-business/economy/canada-competes/canadas-vanishing-tech-sector/article4396596/?page=all

[WestCoastRunner]

That article is 2 years old. The high tech industry in Vancouver moves quickly.

Check these articles out, http://business.financialpost.com/2014/01/05/startups-what-to-watch-in-2014/?__lsa=e545-cf70

http://www.techvibes.com/blog/vancouver-tech-startup-ecosystem-2013-12-20

[bush_cheney2004]

That article is 2 years old. The high tech industry in Vancouver moves quickly.

Small start-ups can do that...and fail just as quickly. Where are the large cap tech companies that can anchor the industry through good times and bad. Why is RIM dying such a slow, painful death (there is more to Canada than Vancouver) ?

Edited March 31, 2014 by bush_cheney2004

[WestCoastRunner]

Small start-ups can do that...and fail just as quickly. Where are the large cap tech companies that can anchor the industry through good times and bad. Why is RIM dying such a slow, painful death (there is more to Canada than Vancouver) ?

RIM is dying a slow death because they laid back on their heels. There are many examples of companies like this who made the same mistake. Sure, small start-ups can fail quickly but in the meantime, they hire lots of folks, who spend money, contribute to the economy and more importantly gain experience. Of course there is more to Canada than Vancouver. There are plenty of smart, creative skilled entrepeneurs right across Canada, even in small towns like Abbotsford, BC, or Thunder Bay, Ontario. I am only using Vancouver as an example because I am familiar with the city.

[bush_cheney2004]

... I am only using Vancouver as an example because I am familiar with the city.

Good choice, because Vancouver is not likely to die from a hollowed out core anytime soon. But a city like London, Ontario could do exactly that. With about half of Detroit's population, and a vanishing manufacturing sector, it may reach the tipping point soon.

[Moonlight Graham]

When you want to look at the future of many, if even not most, European capital cities, just look at Detroit. I'm sure that not even the most ardent multikulti-lovers can say that Detroit is a success-story.

Why would many/most European capitals collapse like Detroit in the future? What has mutli-culturalism have to do with the fall of Detroit? Black people remain there because many black people are poor and they don't have the money to pick up and move to cities that are more expensive to live in.

Is there any possibility that any Canadian city turns into one like Detroit?

If a key industry that sustained a Canadian city's economy left that city then yes of course it could happen.

Edited March 31, 2014 by Moonlight Graham

[WestCoastRunner]

Good choice, because Vancouver is not likely to die from a hollowed out core anytime soon. But a city like London, Ontario could do exactly that. With about half of Detroit's population, and a vanishing manufacturing sector, it may reach the tipping point soon.

Actually I am from London, Ontario and I know that they have a strong medical research, university background and plenty of other industries. I think they will do just fine.

[bush_cheney2004]

Actually I am from London, Ontario and I know that they have a strong medical research, university background and plenty of other industries. I think they will do just fine.

That's what Detroit thought too, even after the '67 riots.

[WestCoastRunner]

And, your point?

[bush_cheney2004]

And, your point?

The point is that such optimism is no match for economic reality. Southern Ontario is hemorrhaging manufacturing jobs and the spin-offs that go with them. The government is creating even more barriers with expensive energy schemes. More people now work in the "free" health care system.

[WestCoastRunner]

The point is that such optimism is no match for economic reality. Southern Ontario is hemorrhaging manufacturing jobs and the spin-offs that go with them. The government is creating even more barriers with expensive energy schemes. More people now work in the "free" health care system.

I don't think you can speak with the expertise that you convey coming from an American. London, Ontario will be just fine.

[bush_cheney2004]

I don't think you can speak with the expertise that you convey coming from an American. London, Ontario will be just fine.

LOL! That sure doesn't stop Canadian "expertise" about Detroit or other American cities. There are/were plenty of American things in London....until they left.

[WestCoastRunner]

I don't think I conveyed any such expertise about Detroit.

[bush_cheney2004]

I don't think I conveyed any such expertise about Detroit.

You haven't been here very long.

[WestCoastRunner]

You haven't been here very long.

I don't understand your insinuations?

[bush_cheney2004]

I don't understand your insinuations?

That's OK...London hasn't failed....yet. Let's hope it doesn't.

[WestCoastRunner]

That's OK...London hasn't failed....yet. Let's hope it doesn't.

London is a Canadian city. It won't happen. Stop with the fear mongering.

[bush_cheney2004]

London is a Canadian city. It won't happen. Stop with the fear mongering.

Don't get angry at me...I didn't start this thread or comparison to the Motor City. But it most certainly could happen, in a Canadian way.