financial condition of Detroit has been precarious for decades. The city has had 23 budget deficits in the last 30 years and has lost jobs and population like no other major city in the United States. Between 1965 and 1990, Detroit's population plunged by 35% and the city suffered significant declines in manufacturing jobs.
During the 1980s, the city declined 15% in population and 11% in per capita income. At the same time Detroit saw a 48% growth in the percentage of its people living in poverty; almost one-third of its citizens lived below the poverty line in 1990. In the last 10 years alone, more than 80,000 jobs disappeared.
In 1993, Detroit's voters elected Dennis Archer, the city's first new mayor in two decades. In his campaign, Archer vowed to restore Detroit's status as a "world class" city. How is he doing so far? That's the question this study will address. First, we will examine Mayor Archer's economic policy during his first year. Second, we will look at the economic policies of mayors of other large cities similar to Detroit. Third, we will make recommendations for future changes.