No Longer the Arsenal of Democracy, 1951–1952

Abstract

During the Korean War, autoworkers experienced persistent layoffs while inflation increased the cost of living. Government allocations of raw materials did not favor the auto industry, and most military contracts did not to go to Detroit factories. Despite dire warnings from industrialists, union leaders, and civic officials, tens of thousands of people, motivated by memories of Detroit as the Arsenal of Democracy during WWII, migrated to the city. At one point in 1952, 10 percent of all unemployment in the nation was in metro-Detroit. Then the 1952 steel strike eliminated auto production. In the background, automation continued to eliminate jobs. Nevertheless, the auto industry revived in late 1952 and there was suddenly a labor shortage.