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Economic Effects Of Deindustrialization In Detroit And The American Auto Industry

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Deindustrialization occurs when a country or region loses industrial capacity due to relocation or increased efficiency elsewhere. Effects of deindustrialization include bankruptcy, loss of jobs, ghost towns, empty buildings and unutilized lands. A notable example of deindustrialization and how it can negatively impact an area and population is Detroit and the American automobile industry. After auto plants and parts suppliers relocated to the southern US, Canada and Mexico there were dramatic adverse economic effects on the city. The closed auto plants were abandoned in a period before environmental regulation, causing the sites to become so called “brownfields,” unattractive to potential replacement businesses because of the pollution hang
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