Crémieux Profile picture
Feb 11 • 25 tweets • 10 min read • Read on X
Trump is wrong about this. Canada didn't steal the auto industry from the U.S.

The decline of the auto industry in the U.S. was driven in no small part by racism.

Let's talk Detroit🧵 Image
It seems shocking nowadays, but the best major American city for a young person to be in as late as 1980 was Detroit.

The Motor City was America's richest city, not too long ago. Plenty of you reading this will remember a prosperous, beautiful Detroit. Image
If you're in tech, you might have noticed that a disproportionate number of your friends are from Michigan, and specifically, from suburbs like Troy, Novi, Farmington, Royal Oak, Rochester, and so on.

When Detroit went, so did the reasons for talented young people to stay. Image
So, why did Detroit decline?

There are stories in here about mounting foreign trade and competition, protectionism-driven complacency, auto worker unions, bureaucratic missteps, and urban sprawl, but all of that's minor next to the impact of Mayor Coleman Young. Image
Coleman Young was Detroit's first Black mayor. His political ascendance to that position traces to a 1948 Supreme Court decision.

In Shelley v. Kraemer, the Supreme Court made it possible for Blacks to buy properties in neighborhoods that had race restrictions on homeownership.Image
The effect of the ruling was to spike Black urbanization.

It seems the people who set up covenants knew their offerings would be bought by Blacks if they were able, and they didn't want that.

In cities like Chicago, Kansas City, Baltimore, and St. Louis, the effect was massive: Image
Detroit was no exception.

After Blacks became legally capable of moving into the places in the city that they could afford, they started doing that right away.

But as Blacks moved into the cities, Whites opted to escape crime, poverty, and integration, to the suburbs. Image
Detroit went from 83.58% White in 1950 to 70.83% White in 1960. By 1970, the city was just 53.98% non-Hispanic White, and it had skyrocketed from 16.25% Black in 1950 to 43.69% Black by 1970.

The city responded to this in various ways, like with police programs such as CRASH. Image
During the "long, hot summer of 1967", Detroit was hit with the 12th Street Riot, and the results was that the city wound up aflame with racial tensions that nobody—not President Johnson, nor Governor Romney, or Mayor Cavanagh—could squelch.

White flight kept going. Image
In 1973, the mayoral race was between a White man—John Nichols, the police commissioner—and a Black man—the protagonist of the story, Coleman Young.

Almost every White in the city voted Nichols. Almost every Black voted Young.

It was a racial headcount and Young came out ahead. Image
In that election, Young's margin of victory was slim. There were almost as many Whites as there were Blacks in the city, but the Blacks were more motivated to get out the vote.

Young never had another slim margin after that. His rule was about building a lead, by any means.
And it succeeded!

In 1977, he had an 18pp lead over a moderate Black candidate dubbed "the great black white hope". In 1983, he beat his last White opponent by 32 pp. In his final two elections, he beat a Black opponent by 20 pp in 1985 and 12pp in 1989.

He simply ruled.
But the way he got this rule was by ensuring that Detroit had no way back, by guaranteeing that the city would never be America's richest city again, barring some sort of miracle.

Young sought to implement policies to change the city's demographics: more Blacks, fewer Whites. Image
The Whites in the city recognized Young's efforts, and felt that they were discriminated against.

And Whites responded by moving to suburbs located as close as possible to Detroit, but not controlled by Mayor Young.

7/10 Whites agreed: Coleman Young discriminates! Image
And Young's policy was crafty.

For example, in response to Whites choosing commutes instead of his rule, he increased the commuter tax rate, while raising the local income tax rate on the remaining, well-to-do mostly White upper crust of the city. Image
Young targeted building projects so as to make it easier for his supporters to stay in the city.

To be clear, this was an absurd move given the White exodus meant the housing market in the city was busted and houses sold for less than construction costs.
Young also cut public services favored by Whites, including sabotaging the police force, fire department, and trash collection.

At the same time, he promoted immorality that the White population took umbrage with in the form of things like casinos. Image
Young didn't do anything during this time to attract, keep, or grow the skilled labor force needed for the local auto industry.

So its decline was assured by his rule. No one was going to move back in sufficient numbers to sustain it, and the city ended up all the worse for it. Image
This one mayor had effectively shut out the existence and future possibility of Detroit's agglomeration economy in making cars.

But to be clear, Coleman Young wasn't even the first Mayor to do this in America.

Boston Mayor James Curley also sought to weaponize demographics. Image
Mayor Curley was proudly Irish, and he hated Yankees (this used to mean 'northern founding stock Americans'), and none more than the Boston Brahmin.

Between his first mayoral election in 1913 and his last in 1944, he managed to oust the city's Anglos in a reign of impunity.Image
Curley was insanely corrupt, and did everything he could to aggravate Anglos. He hated Anglos, and if he knew you were an Anglo, a Protestant, or anyone not in his ethnically-new-to-America coalition, he probably hated you, specifically.Image
Curley discriminated directly and openly.

He would tell Anglos they could get a job under him if and only if they could do the impossible.

He would raise the salaries of roles with few Anglos and lower the salaries of roles with many Anglos.Image
This was not good for Boston as a whole, just as Young's rule was not good for Detroit.

As in Michigan, people tried to escape Curley whenever they could, and he was happy with that. He wanted an ethno-city, not prosperity, and he was very clear about that! Image
An even more explicit ruler who caused harm by exploiting demographics is Robert Mugabe, who sought to get Whites to leave Rhodesia (now Zimbabwe), and to alienate opposed Blacks.

He went so far as to hire his own marauders to kill and harass White farmers in droves. Image
Thread limit, so I'll say this: Zimbabwe has turned out predictably.

So has Detroit, and so did Boston in the time of Curley. Boston has arguably never recovered, since without Curley, it would very likely have become a far larger, better managed city.

Sources and reading material:

sciencedirect.com/science/articl…

scholar.harvard.edu/files/shleifer…

storymaps.arcgis.com/stories/fa7859…

policing.umhistorylabs.lsa.umich.edu/s/detroitunder…

policing.umhistorylabs.lsa.umich.edu/s/detroitunder…

en.wikipedia.org/wiki/Demograph…

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More from @cremieuxrecueil

Feb 11
Antibiotics are one of those things where I'm a hypocrite about policy.

I think I should be able to stock up, but also that most people should still have to go to the doctor for a prescription as-needed.

I want to avoid what happens in the developing world:Image
In the developing world, antibiotics are widely available, with little if any regulations over them. And this makes total sense, because there aren't that many doctors. Poor countries, few doctors per capita, limited access to by-the-book healthcare...

Loads of self-medication!
That self-medication results in lots of people taking an informal approach to medication usage. For example, if you buy a bunch of antibiotics in India, you might get them in a bag that has a reminder to finish your dose printed on it, even if you feel better before it's through.
Read 15 tweets
Jan 26
Thread.

On the left, you can see a map of corruption indexed by the number of mob crimes per 100,000. On the right, you can see corruption indexed by how much people steal from the public purse.

And in the middle, a map of inbreeding.

Clannish people do clannish crimes. Image
Though it's noted in the image, I want to reiterate that the corruption measure on the right is reverse-coded, so higher values indicate lower corruption.

The correlations with consanguinity are 0.65 and -0.52, and they hold up splitting the country in half and in other specs.
Outside of Italy, in the wider world, corruption perceptions also relate to consanguinity.

The correlation is high, and far from perfect, but both measures contain error, so keep that in mind. Image
Read 26 tweets
Jan 26
The largest price-fixing operation in U.S. history took place when @tevapharm hired a woman to do "price increase implementation."

Through LinkedIn & Facebook, she organized a multi-billion dollar cartel, singlehandedly increasing generic drug prices.

There are lessons here🧵 Image
When the cartel started, the companies in question started filing ANDAs, the FDA's "Abbreviated New Drug Applications" to start selling a generic version of an existing drug.

You can see that the involved parties started filing and getting approvals en masse.Image
When the log(price) hikes are stratified across markets, we see that the cartel was either better able to or more greatly desired to keep prices elevated in smaller markets.

Which makes sense! When the drug is rare, it's easier to successfully collude. Image
Read 14 tweets
Jan 25
Multifamily rental management companies have recently begun adopting algorithmic pricing tools to adjust their rents.

In recent years, about a quarter of buildings and a third of all units are managed with these tools.

What's the effect?🧵 Image
The answer to this question depends on when you ask it.

Early adopters who picked up the technology in 2007, for instance, saw small decreases in asking rents, as well as small increases in occupancy rates.

Algorithmic pricing was making the market better for customers! Image
But, later adopters who picked up the technology in 2013 saw increases in rents and declines in occupancy.

The impact of algorithmic pricing had gotten less consumer-friendly over time.Image
Read 14 tweets
Jan 18
The end of affirmative action should have brought about major changes at American universities.

But did it?🧵

One piece of evidence it did is that the Black student share declined: Image
Another piece of evidence is that the Hispanic share declined: Image
And, consistent with Whites and Asians no longer trying to bilk the system, the multiracial share also dropped: Image
Read 10 tweets
Jan 17
It's well-known that a very small portion of the total criminal population is responsible for the overwhelming majority of all crime.

A new study shows that this is also true of prison misconduct:

Just 10% of prisoners are responsible for more than 70% of misconduct in prisons! Image
The above numbers were for males. Here are the numbers for female prisoners.

The numbers are eerily similar. Image
Misconduct overrepresentation holds adjusting for time served in prison, and being a high-misconduct prisoner is predicted by being younger, Black, having a more extensive criminal history, being a violent criminal, being in a state facility, using drugs, and mental disorders.
Read 5 tweets

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