The Economic Rise and Fall of Milwaukee, By Marc V. Levine Department of History Center for Economic Development UW-Milwaukee October 7, 2004

Median Family Income in Three Cities: (in real 2000 dollars)

Jobs in Three Cities: (in thousands)

Mature Industrial Milwaukee Emerged between Based on high-value-added durable goods—nonelectrial and electrical machinery and transportation equipment By the 1940, more than 46% of males employed in Milwaukee manufacturing worked in firms producing iron and steel products or heavy machinery Manufacturing wages in Milwaukee 10% above the national average in the 1940s

Mature Industrial Milwaukee In 1950: Full employment economy 30% of labor force “operatives or laborers;” 42% employed in manufacturing Family-supporting jobs: median family income above comparable cities City as unambiguous center of regional economic gravity

1950s: Storm Clouds on the Horizon The Bitker Commission The Oak Creek Law and the End of Annexation The Zeidler Commission

The Economic Decline of Milwaukee: Deindustrialization Suburbanization of Employment and Commerce The Secession of the Affluent Race and Inner City Distress Failure of Corporate and Political Leadership

The Deindustrialization of Milwaukee # of Manufacturing Jobs in city (in thousands) % change from previous year

The Suburbanization of Manufacturing in Milwaukee Year# of manufacturing jobs in suburbs (in thousands) % change from previous % of metro manufacturing jobs (in thousands)

Geography of Net Job Growth in Metropolitan Milwaukee Since City of Milwaukee-8,540 Milwaukee County Suburbs+52,454 Waukesha County+146,368 Washington County+31,082 Ozaukee County+22,726

Local Employment at Selected Milwaukee-Area Companies, Company Briggs and Stratton Aurora Health Care540011,704 Wisconsin Bell/SBC Ameritech Allen-Bradley/Rockwell A.O. Smith/Tower Automotive Firstar GM-Delco Electronics Marcus Corporation Marshall & Ilsley Corp Miller Brewing Wisconsin Energy Corp Northwestern Mutual Johnson Controls2500 Harnischfeger/Joy Global Ladish Master Lock Harley-Davidson

Rising Unemployment in Milwaukee: The City versus the National Urban Average,

A Growing City-Suburban Gap in Joblessness Since 1990

Retail Sales in the City of Milwaukee As Share of Metro Area Retail Trade,

City Shopping Patterns in Metro Milwaukee, Percentage of households reporting shopping within past 30 days at selected Milwaukee-are shopping centers Downtown Grand Avenue Mitchell St Southgate Capitol Court Northridge Mill Road-9--

Southridge Brookfield Square Galleria West (Brookfield--66 Loehman’s Plaza (Brookfield) -911 Brookfield Fashion Center Brownstones (Brookfield)--89 Mayfair Johnson Creek Outlet---15 Factory Outlet (Kenosha)--910 Gurnee Mills--611 West Allis11988 Suburbs West/South Shopping Patterns in Metro Milwaukee, Percentage of households reporting shopping within past 30 days at selected Milwaukee-are shopping centers

Bayshore Pavilion (Mequon)--55 East Towne Square (Mequon) --46 Manchester Mall (Grafton) --57 Suburb/North Shopping Patterns in Metro Milwaukee, Percentage of households reporting shopping within past 30 days at selected Milwaukee-are shopping centers

Commuting in Metro Milwaukee, *Preliminary

The Shrinking City Share of Metro Milwaukee’s Affluent Percentage of families/households in metro Milwaukee in various income brackets living in the city YearShare of metro area families/households Share of metro area “top 5%” bracket Share of metro top “25%” bracket

The Changing Geography of Affluence in Metropolitan Milwaukee, City of Milwaukee Fox Point Bayside River Hills Shorewood Whitefish Bay Mequon633*2171 Brookfield Elm Grove New Berlin Delafield54969 Pewaukee Wauwatosa

Commuting by the Suburban Affluent, Percentage of top quintile suburban earners working in city *Preliminary

Race and Low-to-Moderate-Skill Employment in Selected Cities, 1970 Percentage of workers employed as “operatives and laborers ” CityBlacksWhites Baltimore Chicago Cleveland Milwaukee St. Louis Philadelphia Pittsburgh Cincinnati Boston Detroit

Milwaukee’s “Inner City,” : An Economic Snapshot Total Employed Residents27,64312,152 Male labor market exclusion33.9%56.4% Total employed in manufacturing11,2902,335 % employed in manufacturing40.8%19.2% Poverty rate25.7%40.2% Real median household income$21,090$18,193

Lincoln Park, : An Economic Snapshot Total Employed Residents3,6042,392 Male labor market exclusion20.9%48.2% Total employed in manufacturing1, % employed in manufacturing34.5%20.2% Poverty rate3.9%17.2% Real median household income$36,392$29,746

The Employment Crisis in Milwaukee's Inner City (Percentage of Male Residents, Age either Unemployed or Out of the Labor Force in Selected Areas, 2000)

Labor Market Exclusion: Census tracts with 50% or more working-age males unemployed or out of labor force

Black Household Income as a % of White Household Income: Milwaukee in a National Context

A Small Black Middle-Class Compared to other metropolitan areas, Milwaukee’s black middle class is small. Among the 50 largest metro areas in the U.S., Milwaukee ranks 47 th in the percentage of black households with annual incomes over $40K Metro Area% of Black Households with Annual Income over $40K San Jose67.8 Washington DC56.5 Atlanta49.0 Oakland47.6 Riverside46.7 Newark46.0 Hartford43.5 Chicago42.6 Baltimore41.8 Charlotte40.8 Minneapolis37.2 Columbus36.8 Kansas36.0 Cleveland32.5 Milwaukee30.0 Buffalo25.7

Percentage of Metro Area Black Households with Annual Income Greater than $40K Living in Suburbs, 2000

Percentage of Middle-class (above $40K) Households Living in Neighborhoods in which the Poverty Rate Exceeds 20% in Selected Metro Areas, 2000 MilwaukeeBaltimoreMinneapolis White Black

Percentage of Affluent (above 100K) Households Living in Neighborhoods in which the Poverty Rate Exceeds 20%, in Selected Metro Areas MilwaukeeBaltimoreMinneapolis White Black

Failure of Policies and Leadership The Maier Years: Inner City Neglect and Regional Confrontation The Norquist Years: The “Ostrich” and the Booster “Can’t build a city on Pity” Market fundamentalism A developers’ city Tourism Corporate Leadership: the GMC, MMAC

Corporate Executive Pay in Milwaukee, Compensation of 100 highest paid executives of publicly held corporations YearMedian Cash Compensation Median Value Company Stock Holdings Ratio of Compensation to average worker pay Ration of stock value to average worker pay 1990$274,206$1.12 million $572,921$8.68 million $625,397$5.06 million