Foreclosures Lead To a Social Crisis in Detroit

Foreclosures are primarily responsible for the social upheaval that has overtaken Detroit, Michigan. Once upon a time it was manufacturing hub of the Midwest and the greatest producer of cars in the world. But over the past few decades people and jobs having been slowly but surely exiting.

In the last few years the pace of decay has increased as the auto industry limps backwards from bad to worse. Jobs and benefits have gone or wages have been cut. In the seven years from 2000 to 2007, 431,000 jobs have been lost in Michigan – it being a tenth of its employment figures Most of the jobs, nearly a quarter, were from the automobile industry that was concentrated in the Detroit region. Those that have remained are under constant threat of insecurity and drastic wage cuts.

The living standards of the working class have been decimated. On top of this foreclosures have crept in. It may be said that the economic gloom in Michigan has contributed largely to foreclosures. Thousands of families are in a financial limbo. Poverty is becoming pervasive. According to census report in 2006 the average income in Detroit was $29,500. It calculated to being $20,000 less than the average household across the country. In the city the per capita income was a meager $14,700 in 2006. This low amount cannot meet the basic needs of a family – food, transport, childcare and other expenses. Thousands are turning to government help and charity. Under such circumstances foreclosures become inevitable. Over 1.25 million people in Michigan State receive federal food assistance via the food-stamp programme. Many people are qualified for this assistance is still waiting to avail of it.

Jane Sehnder_Merrell, of Kids Count Programme for the Michigan League of Human Services speaking to World Socialist Web Site said that out of eight residents one are eligible for food-stamp. One out of every five children qualifies for it. In five years starting from 2000 the number of children who need this help has doubled. Most of the children came from working class families. She commented, “In 2005, 45% of children in Detroit were in need of food assistance. This was before the bottom dropped out and all the gas prices started going up.” In 2006 the number has gone up by 9% to 54% in one year only. With the foreclosure crisis continuing to rage there is no doubt that the percentage has further increased.