Research on the Decline and Reconstruction of Detroit: From Industrial Prosperity to Bankruptcy under Globalization

Detroit was once a universe-renowned industrial metropolis, where its celebrated automobile manufacturing industry drove rapid economic growth and prosperity. However, it experienced a dramatic decline in the late 20th century, shifting from prosperity to an economic crisis. This paper reviews the historical evolution of Detroit, analyzes the reasons behind its past glory and subsequent decline, and points out the complex relationship between industrial structure, technological innovation, social changes, and policy management in the city's economic development, thus providing an important reference for the sustainable development of other cities. Adopting a mixed-methods approach combining literature review, secondary data analysis, and comparative assessment, this study evaluates the feasibility of existing reconstruction strategies. Among the existing solutions, the author believes that the following measures merit the most indepth study: fiscal cleansing, the financialization of municipal governance, lowincome housing tax credits, neighborhood stabilization programs, and the preservation and adaptive reuse of historic buildings. By transcending a perspective limited to Detroit or even the United States and instead adopting a lens of globalization and diversified industries, these measures can effectively spur Detroits reconstruction.Specifically, fiscal consolidation can help Detroit address its debt burden and restore financial stability. The financialization of municipal governance may introduce innovative financial tools to support urban development. Low-income housing tax credits and neighborhood stabilization programs can improve the living environment and promote social equity. Meanwhile, the preservation and adaptive reuse of historic buildings not only protect the city's cultural heritage but also attract tourism and investment, contributing to economic revitalization.