Recap of the Automotive Insights Conference sponsored by the Federal Reserve Bank of Chicago–Detroit Branch, Detroit Association of Business Economists, and WardsAuto

By Martin Lavelle

On January 12, 2017, the Federal Reserve Bank of Chicago’s Detroit Branch, the Detroit Association of Business Economists (DABE), and WardsAuto hosted the inaugural Automotive Insights Conference. The conference was an expansion of the DABE’s annual Bob Fish Memorial Automotive Luncheon. As did the luncheon, the conference provided an opportunity for auto industry analysts to share their insights and forecasts for the coming year. The expanded conference format allowed for additional presentations that covered powertrain production schedules and upcoming regulatory requirements for new vehicles.

Sales Outlook

Haig Stoddard (WardsAuto) said that new light vehicle sales reached 17.5 million units in 2016, eclipsing the previous record of 17.4 million units set in 2015. The surge in new light vehicle sales seen in the fourth quarter of 2016 was correlated with the aggressive incentives offered by auto companies. New auto sales have now increased for seven consecutive years—the longest such streak since before the Great Depression. Against this backdrop, Stoddard forecasted a slight step back in sales to 17.3 million units in 2017.

Consumers are in a better position to enter the market for new vehicles, contended Paul Traub (Federal Reserve Bank of Chicago–Detroit Branch). He showed that consumer sentiment has been improving, indicating the people are becoming more open to buying new vehicles. In addition to the aggressive incentives offered by auto dealers, loans with longer terms than normal (typically lowering the monthly payments), falling household debt, and fairly easy access to auto credit are facilitating new car purchases. Stoddard and Traub argued the pent-up demand for new vehicles stemming from the Great Recession has been satisfied.

Stoddard’s long-term sales outlook called for a further slide in light vehicle sales in 2018 followed by a rebound. While Stoddard’s outlook did not include a recession, he indicated that if a mild recession were to occur, new light vehicle sales would be 1.5 million to 2.0 million units lower four years from now. Stoddard said the long-run trend for new light vehicles sales would reach 17.0 million units by 2025. That sales level would then become the new standard for whether or not it was a good year for new light vehicle sales. New light vehicle sales will exceed long-run expectations if consumer demand for the latest vehicle technology accelerates. In contrast, new light vehicle sales will fall short of long-run expectations if consumers are enticed by deals for used vehicles, young people continue to delay household formation (on account of student debt and other reasons), and telecommuting becomes even more popular than it is today, among other factors.

Future Direction of Vehicle Production

Little to no growth in new light vehicle production is expected for the U.S. over the next few years, with gains made elsewhere, according to Stoddard and John Sousanis (WardsAuto). Stoddard predicted that North American production will rise over 500,000 units over the next seven years because of increased production of small cars and crossover utility vehicles in Mexico and lower production in Canada. Sousanis also said he projected the light vehicle production share of cars and trucks to stay the same globally over the coming years, but these shares are anticipated to vary more by region. Turning to his forecasts for auto parts manufacturing, he said that more than 50% of the growth in powertrain production over the next seven years will occur in China. Moreover, internal combustion engine displacement and the average number of cylinders in a vehicle should continue to move downward, but remain relatively higher among vehicles sold in the North American market. Slightly more diversification among transmission types is expected among future vehicles, stated Sousanis.

The diversity in transmission production will partially result from manufacturers employing different technologies to comply with the federal government’s corporate fuel economy (and emissions) requirements by model year 2025. (1) Brett Smith (Center for Automotive Research) outlined how the auto industry is trying to meet these standards. By utilizing different technologies, the auto industry is innovating faster than originally anticipated by regulators. For instance, battery cell producers have lowered their cost structures earlier than anticipated—with much less capital and smaller economies of scale than thought necessary. (2) Yet, the current pace of innovation is not sufficient, according to Smith, as the auto industry is still “nowhere near” on track to achieve the 2025 fuel economy goals.

To help manufacturers meet the fuel economy standards, Smith contended that regulators need to provide more incentives and infrastructure that support consumer demand for battery electric and hybrid vehicles. Additionally, the federal government should offer more “emissions credits” for introducing electric or hybrid technologies, off-cycle technologies, (3) and similar innovations in their vehicles than at present. In general, Smith said further discussions about the timetable for achieving the 2025 fuel economy targets should be held between industry representatives and federal regulators. In response to some of Smith’s points, Sousanis said perhaps the federal government might consider differentiating fuel economy standards by vehicle class (e.g., subcompact, mid-size and standard sport utility vehicle).

Concluding the conference was a conversation between Dave Andrea (Center for Automotive Research) and Joe Anderson (TAG Holdings). The conversation centered on the leadership style of Anderson, who serves as TAG Holdings’ chairman and CEO, and his 30-plus years of experience in the auto industry. Anderson said he always learned a lot about each business he purchased before setting expectations for his staff. Those expectations focused on the following aspects of the business: product quality, cost, technology, and delivery.

Focusing on the first item on his list, Anderson said he believes quality control systems should be installed before the production process begins. This way the quality control process won’t be perceived as just a corrective experience. According to Anderson, quality control processes, while costly in the short run, will have long-term positive impacts on throughput and financial performance. In closing, Anderson advised those in the audience to design and engineer their products to fit their consumers’ preferences.

Conclusion

Consumers are in a more favorable position to buy vehicles today than they were shortly after the Great Recession. This has boosted analysts’ short-term forecasts for automotive sales. However, the long-term sales outlook is less certain. While there’s proven demand for the latest vehicle technology, especially among young consumers, they may delay their new vehicle purchases because many of them have yet to form their own households. On the production side, growth is expected in Mexico and China. But not much production growth is expected for the U.S. Vehicle producers are striving to hit federally mandated fuel economy (and emissions) standards by model year 2025, but this goal currently seems unattainable. Despite producers’ ability to innovate more quickly than expected, they remain “nowhere near” on track to hit the 2025 fuel economy targets. More dialogue between auto producers and regulators is needed to ensure that the fuel economy standards are met in a timely and reasonable fashion. Finally, greater dialogue between management and workers, as well as between automakers and consumers, can help improve product quality and customer satisfaction.

Important Findings from the Reinventing Our Communities Conference: What’s Happening in Detroit Versus Other Cities across the Country

By Martin Lavelle

In my previous blog post, I discussed some of the comparative analysis on Philadelphia and Detroit that I did before (and after) the Seventh Biennial Reinventing Our Communities Conference—which took place on September 21–23, 2016. Here I want to recap what was shared at the conference. I got a lot out of attending this conference, which focused on urban economic development. The conference afforded me the opportunity to compare what’s happening in Detroit with what’s occurring in the other cities. More specifically, I learned much about how other cities are tackling issues such as affordable housing, workforce development, and the use of vacant land and buildings. And I considered how these strategies might be applied in Detroit or compared them with what’s already under way in Motown. What follows are some of the general takeaways I gleaned from the conference. Please note that throughout the conference, several panels occurred concurrently; I’ll be reporting only what I observed in the panels I participated in.

Day 1

The conference opened with a panel that discussed building an inclusive, transformative economy. The panel centered on the idea of inclusion, particularly as it pertains to an urban economy. Cities are often incubators of growth. But panelists argued cities must remain affordable, so that their populations, specifically, their lower-skilled segments, can benefit from urban economic growth. Also, the panelists reiterated that investments in different types of infrastructure lead to better employment and income outcomes. Finally, the panel contended that the largest barriers to inclusive economic growth are ineffective coordination or the lack of coordination between different levels of government. Southeast Michigan’s current bus system immediately came to mind as an example of ineffective regional policy. (1)

The first day of the conference concluded with a panel that discussed how institutions that anchor certain communities can address social issues better and boost local economic growth even further. Drexel University—which helps anchor the University City neighborhood in Philadelphia—is taking a significant step toward these goals with its Dornsife Center for Neighborhood Partnerships. The primary goal of the Dornsife Center is to build social cohesion by addressing instability that originates from problems in families, neighborhoods, and institutions. To do this, it provides enrichment classes, community meals, workforce development programs, and educational programs for students from pre-K to college. To me, what’s happening at the Dornsife Center sounds similar to what Detroit’s Neighborhood Service Organization is doing at its Bell Building. In closing, the panelists agreed that multiyear grants don’t bring sustainable changes to communities; more permanent programs are needed to provide long-lasting positive changes to communities in need.

Day 2

My second day of the conference began with a panel that examined where education and employment opportunities intersect. After experiencing a decline in its adult enrollment, Monroe County Community College in Michigan has shifted gears in order to engage more high school students and graduates, according to one of the panelists. Its career technology center (CTC) includes an innovation and entrepreneurship center and provides week-long programs that expose students to the technology used at the CTC. It is hoped that this exposure will steer participants toward good career pathways. Monroe County Community College also offers a “middle college program” that allows students to earn a high school diploma and an opportunity to earn college credits that can be put toward an associate’s degree in a health science or STEM (2) field. (3) As another panelist shared, in Pennsylvania, the Lehigh Valley Career & Technology Center is preparing students to join the workforce in a different fashion. The center’s curriculum is based on industry suggestions made through a forum of occupational advisory committees. Moreover, the center’s equipment mirrors that of an industry setting. However, such a setup is expensive, which has led the center to seek funding from private sources. A representative of the Philadelphia Youth Network (PYN) explained how it is educating students previously disengaged from school because of a major life event and placing them into service industry jobs. In order to graduate from PYN, students must earn one industry certificate or credential. To track its own effectiveness, PYN follows up with former students one year after they’ve graduate to see if they are employed and have advanced in their jobs. PYN’s tracking of graduates has succeeded because it has used effective ploys to keep in contact with graduates, such as providing them monthly transportation passes in exchange for information on their employment status.

The next panel I sat in on during the second day looked at how vacant land can be reused in lower-income neighborhoods. “Pop-ups” are a fairly novel way to use vacant space and show the space’s potential if something permanent were to move in. In some cases, truly temporary pop-ups are welcomed, while in others, pop-ups that have the potential to become permanent fixtures are preferred. MILES.CITY works with tenants and landlords to bring retailers into spaces temporarily. While in their pop-ups, the retailers are educated on how to become financially viable and how to cultivate their business while minimizing risk. According to the founder of MILES.CITY, the average length of time retailers pop up in a vacant space is around ten days. That said, as another panelist noticed, Philadelphia has beer gardens pop up in vacant spaces and remain in those spaces if development isn’t ready to occur.

Efforts to revitalize vacant land in Cleveland and Memphis were also highlighted in the panel. Students at the Cleveland Urban Design Collaborative at Kent State University design projects to be installed in vacant spaces. Community members assist these students by providing feedback on the planning before the projects are actually set up in the neighborhood. The aim of these projects is to foster social cohesion through welcoming design and interactive spaces. The challenges confronting the design collaborative include the lack of resources and the inability to deal directly with the roots of social problems that trouble the community. In Memphis, MEMFix projects are trying to revitalize parts of the city; typically, these projects are one-day events that showcase a city block’s potential. MEMFix’s success led to increasing involvement from local government officials. MEMFix staff learned that revitalization efforts are more effective when the neighborhood’s leadership is strong and the revitalization efforts are close to other such efforts (clustering breeds success). One of the panelists, the executive director of the Community Development Council of Greater Memphis, reported that ioby (a “crowd-resourcing” tool) has been effective for building small-scale projects, training neighborhood teams, and facilitating collaboration across income groups.

A panel held during the afternoon of the second day highlighted three cities that have transformed their previously unattractive business climates. Philadelphia almost went bankrupt in the 1990s, but is regaining its reputation as the “Workshop of the World,” with the creation of multiple innovation hubs within the city that relate to one another. As one example, Philadelphia is turning its North Third Street into “Nerd Street” (N3RD Street). Additionally, despite its loss of population and business over the past few decades, St. Louis is still seen as an attractive area for talent, innovation, and entrepreneurship because of its strong universities, relatively low cost-of-living, and civic and nonprofit leadership. Chattanooga was cited as the dirtiest U.S. city in the 1960s, but through renovation and beautification initiatives and the establishment of the CO.LAB (Company Lab) public/private incubator and city-wide broadband service, Chattanooga improved its economic prospects. Chattanooga and Detroit are similar in many ways. Detroit is overcoming its own negative reputation through similar initiatives to renovate and beautify many of its neighborhoods. Public/private partnerships are expected to play an important role in many of these initiatives. Additionally, city-wide broadband will eventually become a reality in the Motor City. The hope is that all these efforts will draw more residents to Detroit and allow the city to return to its entrepreneurial roots.

Day 3

The final day of the conference began with stories about the transformation of several communities across the country. These stories covered a wide range of strategies that are being used to improve cities’ economic prospects. Pittsburgh’s East Liberty Development, Inc., figured out where crime existed in its mixed-income neighborhoods and hired off-duty police officers to patrol their properties, which improved the attractiveness of these properties. Helena, Arkansas, created a start-up incubator that, with the help of graphic designers, improved the marketability of its downtown. The New Hampshire Community Loan Fund provides financing to residents in manufactured housing co-ops so they can purchase the home’s land. Rochester, New York, lowered its poverty rate through investments in health care that included coordinating existing services, leveraging community data, increasing support for early childhood education, and confronting structural racism and trauma. In Minnesota, First Children’s Finance subsidized rent payments for child care providers inside school buildings; through this financial support, child care became more widely available within rural communities. And lastly, The Food Trust in Philadelphia improved residents’ access to high-quality food by providing more nutrition education and increasing the supply of healthy foods in corner stores.

Economic revitalization and philanthropic investment in small and mid-size cities was the focus of the third day’s morning panel. The president and CEO of the Danville Regional Foundation argued that the “arc of growth” should intersect with the “arc of opportunity.” He claimed that when these two arcs do intersect, poverty becomes less concentrated, efforts to recruit and retain businesses are more effective, downtowns are revitalized without sacrificing affordable housing, and leaders are developed. Also, the panel discussed the difference between charity and philanthropy: The key distinction between the two was that charity addresses suffering by itself, whereas philanthropy tackles the causes of suffering. The panel also indicated that business recruitment efforts now include expectations of civic contributions. In Detroit, the Kresge Foundation is doubling down in its philanthropic efforts to help Detroit progress in its rebound. Specifically, over the next few years, Kresge will focus on building up neighborhood capacity; creating comprehensive, integrated business opportunity areas; improving early childhood development; and promoting artistic and cultural programming.

The conference concluded with the presidents of the Federal Reserve Banks of Atlanta, Cleveland, and Philadelphia sharing their perspectives on the Federal Reserve’s role in transforming communities. One thing the presidents said the Federal Reserve could do is increase small business representation at community development meetings. Another thing the presidents noted the Federal Reserve could do was more intensely study the connection between income inequality and economic growth. A subject the presidents explained the Federal Reserve should strive to improve on (though some progress has already been made) is studying transition periods (shifting from recessions to recoveries, for example) within the economy and the driving forces behind them. The presidents also said they have noticed a growing disconnect between human capital development and the demands of modern employment.

References
(1) See http://www.freep.com/story/news/local/michigan/detroit/2015/02/06/robertson-car-commuter-detroit/22988565/.
(2) STEM is an acronym for science, technology, engineering, and math.
(3) See http://www.monroeisd.us/departments/curriculum/middlecollege/.

Comparing the City of Brotherly Love with Motown: Reflections on How to Effectively Transform Urban Economies

By Martin Lavelle

When I think of Philadelphia, the following subjects come to my mind: Benjamin Franklin, Betsy Ross, the Liberty Bell, Independence Hall, the Declaration of Independence, and the Constitution. Also, being a sports fan, I think of what a great sports city it is: There’s quite a passionate fan base for its professional teams, as well as Big 5 college basketball at the Palestra. Admittedly, as someone who works in and studies Detroit, it doesn’t naturally occur to me to compare Detroit and Philadelphia like I would Detroit and Pennsylvania’s other major city, Pittsburgh, with its historical reliance on one manufacturing sector, steel. However, as I looked more deeply into Philadelphia’s history, I found myself drawing multiple parallels between the Motor City and the City of Brotherly Love.

On September 21–23, 2016, the Federal Reserve Bank of Philadelphia, other Federal Reserve Banks, and additional sponsors and supporters convened the Seventh Biennial Reinventing Our Communities Conference. The theme of this year’s conference was how to transform our economies. The conference’s sessions covered topics such as how to increase access to capital, how to supply a greater stock of affordable housing and address workforce needs, and how to make philanthropic foundations play a more effective role in communities’ economic transformations. This conference provided an opportunity for me to learn about initiatives in other communities and compare them with developments in Detroit. This will be the first of two blog entries in which I discuss the conference and some of my own analysis inspired by it. Here I will draw some historical and current comparisons between Detroit and Philadelphia. In my follow-up blog post, I will recap the conference and compare Detroit’s efforts to transform its economy with ongoing efforts occurring across the country.

Background

As part of my usual preparation for a conference (especially when a city tour is included), I did a statistical comparison of Detroit and Philadelphia. The table below shows the statistical similarities and differences I found most interesting between the two cities.

portland-chart-1

Note: MSA means metropolitan statistical area.
Source: QuickFacts Beta, U.S. Census Bureau.

The population figures stand out for many reasons. First, it’s easy to forget that back in 1950, when their populations peaked, Detroit and Philadelphia were similarly sized cities. Nowadays, just six and a half decades later, Philadelphia has almost two and a half times as many people as Detroit. Back in the middle of the twentieth century, the population of each city made up around 57% of its respective metropolitan area. But as of last year, Philadelphia’s population share of its metropolitan area (26%) was noticeably larger than Detroit’s population share (16%) of its metropolitan area. The fact that Philadelphia’s population increased over the past 15 years boosted the divergence in population trends. Over the period 2000–15, Philadelphia added almost 50,000 people, while Detroit lost 274,154 people. In terms of demographics, Philadelphia is much more diverse. Also, a higher percentage of Philadelphia’s population has attained a bachelor’s degree or higher—thanks in part to the University City neighborhood, anchored by the University of Pennsylvania and Drexel University, and the presence of many other institutions of higher learning within the city’s limits. Given the divergence in demographics, the difference in home values isn’t surprising, but it still jumps off the page.

Philadelphia’s Financial Challenges

Like Detroit, Philadelphia has encountered fiscal challenges. And like Detroit, Philadelphia’s financial problems simmered for many years before boiling over in the early 1990s. The City of Brotherly Love became the first U.S. city to impose an income tax when it did so in 1939. (1) Philadelphia’s income tax remained in a range of 1.0% to 1.5% until the 1960s, when it started to increase, eventually reaching 3.0% in 1970 and almost 5% in 1985. (2) The increase in the city’s income tax rate was one of the leading factors in city residents deciding to leave for suburban communities. Philadelphia’s fiscal crisis peaked in 1990–91 when a structural budget deficit of $154 million was revealed, with expectations of deeper budget deficits in future years. (3) The city received financial assistance in the form of the Pennsylvania Intergovernmental Cooperation Authority (PICA). PICA sold bonds on Philadelphia’s behalf. It also required the city to adopt a five-year financial plan that had to be approved in order to gain access to capital markets and state funding. (4) Led by Mayor Ed Rendell, the city followed its five-year plan while privatizing selected services, introducing more competitive bidding for city projects, and freezing wages for city employees, all of which helped lead to Philadelphia’s recovery in the late-1990s. (5) Philadelphia also began lowering its commuter tax in 1995, converging city and suburban residents’ respective tax burdens. (6) It has been estimated that increases in Philadelphia’s city wage tax cost the city 207,000 jobs from 1973 to 2003. (7) Two separate tax commissions created in the 2000s concluded Philadelphia’s tax system was outdated and needed to be reformed. (8) In 2014, the Greater Philadelphia Chamber of Commerce released a public/private collaborative plan with the aim of organizing growth-based activity in and around Philadelphia. The chamber’s plan called for improving the city’s competitiveness, producing a well-educated workforce, creating an environment for business growth, and enhancing Philadelphia’s infrastructure. Such efforts will have a familiar ring to Detroiters too.

West Mount Airy: A Gift to Philadelphia from Detroit

The conference began with a tour of Philadelphia’s West Mount Airy neighborhood, one of the nation’s first intentionally racially integrated neighborhoods. The effort to preserve racial diversity within West Mount Airy was led by West Mount Airy Neighbors (WMAN). WMAN was founded in 1959 to deal specifically with the issue of racial integration. (9) One of the founders of WMAN was George Schermer, who tried to organize a similar effort in Detroit before coming to Philadelphia.

After Detroit’s 1943 Belle Isle uprising, Mayor Edward Jeffries formed an Interracial Commission and appointed Schermer as its director. (10) In the early 1950s, Schermer lobbied for an integrated housing development in Detroit’s west side. The development was to be called Schoolcraft Gardens. The Schoolcraft Gardens development attracted private funding and the United Auto Workers (UAW) as a partner. (11) Unfortunately, multiple forces prevented the integrated development from taking shape. First, the neighboring, all-white Tel-Craft homeowners association opposed the Schoolcraft Gardens development. Also, later on, a different Detroit mayor, Mayor Alfred Cobo, vetoed the approval of the development project. Soon afterward, the Interracial Commission was dissolved and replaced by the Commission on Community Relations, whose members would be appointed and could be removed without cause by the mayor. (12) Not surprisingly, when the City of Philadelphia offered Schermer the opportunity to head its newly created Commission on Human Relations, Schermer left Detroit. (13)

Under Schermer’s leadership, WMAN fought housing and education policies that advocated for segregation. WMAN and the neighborhood itself consisted of high-achieving, well-educated, progressively minded people, who were the demographic they looked to attract to the neighborhood. One might argue this allowed integration to work, whereas Detroit saw comparatively less educated groups across different races compete for similar jobs and economic standing, putting the groups at odds with each other.

Impressively, the commitment to diversity in West Mount Airy remains strong. Since 1980, at least 40% of West Mount Airy’s residents have been African Americans. (14) According to Sarah Zelner, who presented background information about West Mount Airy during the conference tour, the neighborhood has a strong LGBTQ presence, in addition to being diverse in terms of race and education. Efforts to maintain the neighborhood’s diversity and affirm its commitment to open dialogue include the long-running Mt. Airy youth baseball league and, more recently, monthly conversations about racial issues. In the evening of the day of the tour, the neighborhood’s main thoroughfare shut down and turned into a street fair that showcased West Mount Airy’s diverse restaurant community.

All that said, the neighborhood isn’t without its challenges. Between 1950 and 2010, West Mount Airy lost around half of its population. This loss in population has impacted the dynamics of the neighborhood in many ways, especially in terms of its educational offerings. The high school located in West Mount Airy closed in 2013—a direct result of the population loss, as well as more-affluent students enrolling in private schools in other neighborhoods. In addition, while the overall racial diversity of West Mount Airy has been maintained, African Americans have been clustering closer to the East Mount Airy and East Germantown neighborhoods, which are both predominantly black. (15) While traveling through the area, I noticed a contrast between West Mount Airy with its homes constructed of stone native to the area and East Mount Airy with housing stock of relatively poorer quality. To combat population loss and preserve the neighborhood’s identity, West Mount Airy is trying to attract more immigrants, highlighting the neighborhood’s cultural history and mixed small business community as selling points.

Gifts in Return from Philadelphia? Possible Lessons for Detroit

The background material I read on Philadelphia’s West Mount Airy neighborhood discussed housing density (as measured, for example, by homes per city block) and its correlation with racial integration. The material cited multiple studies that suggested lower housing density is more amenable to achieving greater racial diversity. (16) This might be one lesson from Philadelphia’s experiences that Detroit might want to apply as it remakes itself. The Motor City is seeking to create dense and diverse population centers within its borders, as it once had decades ago. Part of this goal is being achieved by removing blight. But as neighborhoods are reorganized, city officials may want to keep in mind how racial integration was achieved in Philadelphia and not make the housing density of newly configured neighborhoods too high. Striking the right balance between population and housing density to achieve better racial integration and higher-level services for all citizens than at present will be a challenge, but Detroit can look to some of Philadelphia’s neighborhoods for some examples to follow.

Widening the focus back to the entire city, I think the topic of city residents’ tax burdens should be explored in greater depth. As mentioned previously during my review of background material on Philadelphia and as discussed somewhat during the conference, Philadelphia has reformed its tax system in order to have the tax burden of its citizens be more similar to that of residents in the surrounding suburbs. This is yet another lesson Detroit officials might learn from Philadelphia in order to draw more people to reside within its borders. Indeed, Detroit may want to look to reform its tax system as well. When studying the tax burdens of the largest city in each state and Washington, DC, (17) the total tax payments expected from Detroiters as a percentage of their income rank in the top five. (18) When breaking down tax payments by category, Detroiters’ income tax burden ranks near the top for families making $50,000 or more, and their property tax burden is the highest among the states’ largest cities and Washington, DC. (19) While Detroiters’ sales, use, and gasoline tax burdens rank relatively low, significantly high auto insurance premiums more than make up for it. Detroiters pay more than twice as much as the next city (New Orleans) and over three and a half times more than Philadelphia, which ranks tenth. (20) Current Detroit Mayor Mike Duggan has proposed legislation that would create an auto insurance product specific to Detroit, though this proposal has its critics. (21)

Following what initiatives are and aren’t working in other cities and informing city officials and stakeholders about the results of those different initiatives is important to Detroit’s rebound. This is one of the main reasons why I attended this year’s Reinventing Our Communities Conference. The Detroit Branch of the Federal Reserve Bank of Chicago serves the function as information gatherer for the mayor’s Post-Bankruptcy Working Group, as well as the city’s group that works on affordable housing efforts. Efforts to strengthen communities in Detroit and elsewhere through philanthropic, private, and public partnerships have become more widespread in recent years. The Federal Reserve—especially the Detroit Branch of the Federal Reserve Bank of Chicago—has played a major role in bringing different types of organizations together generate solutions that will benefit those communities for years to come.

Read my next blog entry to get more details on the conference panels that I participated in.

References
(1) See p. 3 of http://economyleague.org/uploads/files/783716581668902685-the-sterling-act-a-brief-history.pdf
(2) Ibid.
(3) See p. 5 of https://www.philadelphiafed.org/-/media/research-and-data/publications/business-review/1992/brso92rl.pdf?la=en.
(4) See p. 1 of http://www.picapa.org/docs/SRFYP/SRFYP_FY16FY20.pdf.
(5) See http://www.nytimes.com/1994/05/22/magazine/mayor-on-a-roll-ed-rendell.html.
(6) See p. 31 of http://www.philadelphiafed.org/research-and-data/publications/business-review/2003/q2/brq203ri.pdf.
(7) See p. 27 of http://www.philadelphiafed.org/research-and-data/publications/business-review/2003/q2/brq203ri.pdf.
(8) See p. 15 of http://www.centercityphila.org/docs/CCR14_employment.pdf.
(9) See p. 42 of Barbara Ferma, Theresa Singleton, and Don DeMarco, 1998, “Chapter 3: West Mount Airy,” Cityscape: A Journal of Policy Development and Research, Vol. 4, No. 2, pp. 29–59, https://www.huduser.gov/Periodicals/CITYSCPE/VOL4NUM2/ch3.pdf
(10) See p. 1 of https://libdigital.temple.edu/pdfa1/Oral%20Histories/AOHWMPJZ2015030001Q01.pdf.
(11) See p. 76 of Lloyd D. Buss, 2008, “Chapter 2: City Influences Religion’s Response,” The Church and The City: Detroit’s Open Housing Movement, University of Michigan, PhD dissertation, https://deepblue.lib.umich.edu/bitstream/handle/2027.42/61748/ldbuss_1.pdf?sequence=1&isAllowed=y.
(12) See Buss (2008, p. 77).
(13) See Ferma, Singleton, and DeMarco (1998, p. 42).
(14) The share of African Americans residing in West Mount Airy was 41% as of the 2010 U.S. Census.
(15) See http://philadelphiaencyclopedia.org/archive/mount-airy-west/.
(16) See Ferma, Singleton, and DeMarco (1998, p. 41).
(17) See pp. 12-21, 24 of http://cfo.dc.gov/sites/default/files/dc/sites/ocfo/publication/attachments/2014%2051City%20Study.final_.pdf.
(18) This ranking does not apply when examining families making less than $50,000 per year. A family is assumed to be made up of two income earners and one school-age child. See p. 13 of http://cfo.dc.gov/sites/default/files/dc/sites/ocfo/publication/attachments/2014%2051City%20Study.final_.pdf.
(19) See pp. 16, 31 of http://cfo.dc.gov/sites/default/files/dc/sites/ocfo/publication/attachments/2014%2051City%20Study.final_.pdf.
(20) See https://www.nerdwallet.com/blog/studies/expensive-cities-car-insurance/.
(21) See http://www.detroitnews.com/story/opinion/2016/03/23/detroit-insurance-cut-rate-policy/82194396/.