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Detroit: A Biography Detroit: A Biography by Scott Martelle
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“The population began dwindling after silk hats replaced beaver hats in high fashion... collapsing the fur trade, in what would become a familiar pattern for Detroit.”
Scott Martelle, Detroit: A Biography
“So severe is the crisis that in 2011 Governor Rick Snyder persuaded the state legislature to grant him broad and unprecedented powers to take control of fiscally unstable local governments and to abrogate union agreements, a highly controversial maneuver that smacks of malevolent paternalism more than sound public management.”
Scott Martelle, Detroit: A Biography
“But Ford’s experiment in paying a livable wage worked. He later described the pay hike as the best cost-cutting move he ever made. Turnover shrank, slashing training costs, and absenteeism decreased as productivity increased—the expectation from managers was that the increased wages deserved increased speed on the line. Wall Street investors and fellow automakers initially excoriated Ford for his wage scheme, but other carmakers eventually followed suit, propelled by Ford’s massive leaps in production while reducing his per-unit costs. A Model T that cost $850 in 1908, on par with cars sold by the new Cadillac company, dropped to $290 by 1920, helping make Ford one of the world’s wealthiest men. And the high wages made Detroit a magnet. Nondecennial surveys by the Census Bureau chart the impact. In 1909, Detroit had 81,000 wage earners who made $43 million working for 2,036 establishments that cranked out $253 million worth of products. In 1914, after Ford’s $5 day began, the same number of establishments employed nearly 100,000 people who made $69 million while producing $400 million worth of goods. In 1919, with World War I raging and the $5 day in full force across the automotive industry, 2,176 establishments were employing 167,000 people, who made $245 million as they produced $1.2 billion worth of goods. In short, the ranks of industrial workers more than doubled, and their wages and the value of the products they made nearly quintupled. Detroit’s ancillary businesses, from clothing stores to restaurants, thrived.”
Scott Martelle, Detroit: A Biography
“It also made an impression on Ford, one of the most virulently antiunion of Detroit’s new capitalist class.Yet he was also a financial pragmatist. Tired of losing money to keep the fresh tides of workers trained for only a few weeks’ worth of work—and with an eye toward removing the unionists’ main rallying issue, money—Ford announced in January 1914 a new profit-sharing plan that would boost workers’ pay to $5 for an eight-hour workday.10 That was more than double the $2.25 he had been paying for a nine-hour day. There was a very thick string attached. To qualify for the program, and the job, workers had to allow representatives from Ford’s new Sociological Department to inspect their homes to ensure the workers and their families were living clean lives of frugality and sobriety. They had to meet one of three criteria: be married and living with and taking care of their family; be single and over age twenty-two with “proven thrifty habits”; or under age twenty-two but providing sole support for relatives.11 Thousands were happy to make that trade and went to the Highland Park plant hoping to land one of the jobs. Ford, though, wound up hiring relatively few new workers—the vast majority of those already in the plant accepted the personal intrusions, and the money.”
Scott Martelle, Detroit: A Biography
“workers with children).1 Crime travels hand”
Scott Martelle, Detroit: A Biography