History of Michigan - After 1941

After 1941

The entry of the United States into World War II the same year ended the economic contraction in Michigan. Wartime required the large-scale production of weapons and military vehicles, leading to a massive number of new jobs being filled. After the end of the war, both the automotive and copper mining industries recovered.

Starting during WWI, the Great Migration fueled the movement of thousands of African-Americans from the South to industrial jobs in Michigan and, especially, Detroit. Migration of white southerners to the city increased the volatility of change. Population increases continued with industrial expansion during WWII and afterward. African Americans contributed to a new vibrant urban culture, with expansion of new music, food and culture.

The postwar years were initially a prosperous time for industrial workers, who achieved middle-class livelihoods. These were the years of the creation and popularity of Motown Records. By late mid-century, however, deindustrialization and restructuring cost many jobs. The economy suffered and the city postponed needed changes. Neglect of social problems and urban decline fed racial conflicts. In 1967 the 12th St. Riot erupted, lasting eight days, causing 25 million dollars in damages, and resulting in 43 deaths. The violence caused many people to leave the city who could, to avoid future problems.

The 1973 Oil Crisis caused economic recession in the United States and greatly affected the Michigan economy. Afterward, automobile companies in the United States faced greater multinational competition, especially from Japan. As a consequence, domestic auto makers enacted cost-cutting measures to remain competitive at home and abroad. Unemployment rates rose dramatically in the state.

Throughout the 1970s, Michigan possessed the highest unemployment rate of any U.S. state. Large spending cuts to education and public health were repeatedly made in an attempt to reduce growing state budget deficits. A strengthening of the auto industry and an increase in tax revenue stabilized government and household finances in the 1980s. Increasing competition by Japanese and South Korean auto companies continues to challenge the state economy, which depends heavily on the automobile industry. Since the late 1980s, the government of Michigan has actively sought to attract new industries, thus reducing economic reliance on a single sector.