Some may say that the eye captures truth from which it sees, but oftentimes we can only glimpse the surface things. Coming from Beijing, I am used to busy streets packed with vehicles and people, hustles of street vendors and music of old ladies dancing in parks. Detroit is quite different. At first glance, there is an apparent deficit of activity. Strolling down Woodward Avenue, I found the stores on either side of the roads are almost always pretty empty. Sometimes it is hard to cross the road given the numerous cars, but the activity cannot compare to my hometown. This realization made me more aware of the gaps in Detroit’s dynamics. From blank spaces between buildings to window frames that once held glass, I see at once the lackluster of the present but also the potential for future embellishments. Of course, I know Beijing and Detroit may not be the best pair for comparison, but I do see the likes of the amount of bustle in Beijing to be a possible future for Detroit.
What worries me, though, is that Detroit’s economy almost entirely hinges on one industry, the automobile. The city flourished when Ford Motor Company prospered and sank when demands for cars plummeted. The Dutch disease is a concept that cannot be more familiar to most economists. The concept came from the Dutch tulip crisis during which a tulip could be worth many houses and the economy exploded when the flower lost its hype. It serves as a warning to other economies that only rely on one type of business, much like Detroit. Although nowadays, there are more branches in the automobile industry and the future looks bright for autonomous vehicles, Detroit would still be prone to the trap of the Dutch disease. I remember going downtown one night to see the fireworks. Each blossom of the fireworks had a different color, and together they brought the city a visual spectacle unparalleled by most. I wish Detroit’s industry could be more like a firework, with different colors merging into one scene for the good of the whole.
Perhaps Detroit in recent history has always identified with the automobile. Having long forged its identity, perhaps Detroit is afraid to lose its “authenticity” by diverging into other industries. Perhaps it is afraid to start from scratch and fail, adding to the burden for the recently recovering economy. But the road ahead is long. The energy and passion of Detroiters are unbeatable.
What worries me, though, is that Detroit’s economy almost entirely hinges on one industry, the automobile. The city flourished when Ford Motor Company prospered and sank when demands for cars plummeted. The Dutch disease is a concept that cannot be more familiar to most economists. The concept came from the Dutch tulip crisis during which a tulip could be worth many houses and the economy exploded when the flower lost its hype. It serves as a warning to other economies that only rely on one type of business, much like Detroit. Although nowadays, there are more branches in the automobile industry and the future looks bright for autonomous vehicles, Detroit would still be prone to the trap of the Dutch disease. I remember going downtown one night to see the fireworks. Each blossom of the fireworks had a different color, and together they brought the city a visual spectacle unparalleled by most. I wish Detroit’s industry could be more like a firework, with different colors merging into one scene for the good of the whole.
Perhaps Detroit in recent history has always identified with the automobile. Having long forged its identity, perhaps Detroit is afraid to lose its “authenticity” by diverging into other industries. Perhaps it is afraid to start from scratch and fail, adding to the burden for the recently recovering economy. But the road ahead is long. The energy and passion of Detroiters are unbeatable.