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Ann Arbor did not slide by unscathed by the Great Depression. The circulation of money throughout Ann Arbor slowed, almost to a halt. The University functioned as the city's last hope. The fortunate students that were able to attend the University kept teachers, renters, and shopkeepers in business. Ann Arbor's decision to reject manufacturing companies in pursuit of the University in the 1920s greatly benefited the city in the 1930s. The constant flow of students, few as they had been, kept some circulation in the economy which kept the city afloat. The depression was a traumatic experience. Residents saw life savings swept away by closing banks. Many residents turned to political change, hoping to instigate change in the merciless economy. The depression was a time of dramatic change in Ann Arbor, characterized by troubling statistics. Ann Arbor clung to the University for survival. The federal government eventually came to Ann Arbor's assistance, though the University was regarded as the lifeline during desperate times. |
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Between 1930 and 1933 retail sales plummeted fifty percent. New construction came to a stand still. Residents rushed to the banks to withdraw their savings so that money held by Ann Arbor banks sunk from 54 million to under 30 million. The situation was bleak and the local government appeared powerless against the declining economy. Students from the University kept some money circulating throughout the economy. They purchased goods and rented property. It is for this reason that Jonathan Marwil referred to Ann Arbor as "an oasis in a desert of broken companies and bankrupt farms," (p.118). Student patronization was not enough though. The mayor of Ann Arbor, Mayor Staebler, turned to the federal government with pleas for assistance to pacify the economic troubles. |
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Between the years of 1933 and 1940 help came. Funds from the federal government led to the construction of new sewer lines, two new schools, and the Farmer's Market. Presumably, the Farmer's Market provided an arena for residents to sell homemade products and make minor profits to help them get back on their feet. The University used federal funds to construct additions to the dental school and hospital. January of 1935 marked a permanent upswing in the economy. Banking was considered once again a safe practice. Construction rose. Investments rose. The birth rate rose by 18%. Although the spirit of the times was far from that of the booming 1920s, the years after 1935 marked a time of normalcy, and an easing of the rampant fear which characterized the great depression. |
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WWII cemented the prosperity of the recovering economy. The Willow Run bomber plant was constructed and offered not hundreds, but thousands of jobs. Workers flocked to Ann Arbor looking for work at the notorious bomber factory. The problem of an influx of blue-collar workers during WWI re-occurred in WWII. Ann Arbor residents were reluctant to allow such low class workers become part of their wholesome community. Marwil conveys the then-prevailing attitude that "the city is too sweet a place for ordinary men in overalls, especially men who were apt to vote Democratic," (p.129). Housing became a crucial problem for these workers because Ann Arbor residents were in no hurry to construct new homes for less desirable residents. Ann Arbor was growing quite comfortable with its reputation as a college town, and in turn shunned the needs of blue-collar workers. Some workers were forced to make homes of their cars or pitch tents at temporary camps. Ann Arbor has roots of strong republican sentiment and were hesitant to embrace Democrats as part of their voting pool. By 1940 Ann Arbor was the richest city in Michigan for its size. The median value of an Ann Arbor home in 1935 was $9,019 compared with the state average of $5,067. The percentage of workers employed at manufacturing companies was 23.8% of the working population compared with a state average of 40.8%. Workers employed at professional services represented 23.6% of the working population compared to a 6.6% state average. Such statistics illustrate the migration from blue collar work to white collar work. The rejection of blue-collar workers during WWII re-affirmed Ann Arbor's status as a college town and its commitment to building a conservative and wealthy city. |
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