1. The Economic Rise and Fall of Milwaukee, 1920-2000 By Marc V. Levine Department of History Center for Economic Development UW-Milwaukee October 7, 2004

2. Median Family Income in Three Cities: 1960-2000 (in real 2000 dollars)

3. Jobs in Three Cities: 1960-2000 (in thousands)

4. Mature Industrial Milwaukee Emerged between 1920-1950 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

5. 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

6. 1950s: Storm Clouds on the Horizon The Bitker Commission The Oak Creek Law and the End of Annexation The Zeidler Commission

7. The Economic Decline of Milwaukee: 1960-2000 Deindustrialization Suburbanization of Employment and Commerce The Secession of the Affluent Race and Inner City Distress Failure of Corporate and Political Leadership

8. The Deindustrialization of Milwaukee # of Manufacturing Jobs in city (in thousands) % change from previous year 1958123.4- 1967118.6-3.9 197791.4-22.9 198763.9-30.0 199746.5-27.2 200136.4-21.7

9. The Suburbanization of Manufacturing in Milwaukee Year# of manufacturing jobs in suburbs (in thousands) % change from previous % of metro manufacturing jobs (in thousands) 196380.9-39.9 196797.9+21.045.2 1977112.7+15.255.2 1987100.1-11.261.0 1997118.7+18.671.9 2001111.8-5.875.4

10. Geography of Net Job Growth in Metropolitan Milwaukee Since 1970 1970-2000 City of Milwaukee-8,540 Milwaukee County Suburbs+52,454 Waukesha County+146,368 Washington County+31,082 Ozaukee County+22,726

11. Local Employment at Selected Milwaukee-Area Companies, 1990-2003 Company19902003 Briggs and Stratton80002600 Aurora Health Care540011,704 Wisconsin Bell/SBC Ameritech45274500 Allen-Bradley/Rockwell45004800 A.O. Smith/Tower Automotive39861300 Firstar35753500 GM-Delco Electronics36001600 Marcus Corporation35003027 Marshall & Ilsley Corp.30006700 Miller Brewing32121850 Wisconsin Energy Corp.30205100 Northwestern Mutual30004000 Johnson Controls2500 Harnischfeger/Joy Global2500900 Ladish2000925 Master Lock1480750 Harley-Davidson12003500

12. Rising Unemployment in Milwaukee: The City versus the National Urban Average, 1990-2003

13. A Growing City-Suburban Gap in Joblessness Since 1990

14. Retail Sales in the City of Milwaukee As Share of Metro Area Retail Trade, 1954-1997

15. City Shopping Patterns in Metro Milwaukee, 1977-2000 Percentage of households reporting shopping within past 30 days at selected Milwaukee-are shopping centers 1977198719972001 Downtown301299 Grand Avenue-251511 Mitchell St.17835 Southgate242013- Capitol Court28165- Northridge32312316 Mill Road-9--

16. 1977198719972001 Southridge36353638 Brookfield Square3031 40 Galleria West (Brookfield--66 Loehman’s Plaza (Brookfield) -911 Brookfield Fashion Center-111319 Brownstones (Brookfield)--89 Mayfair34 3946 Johnson Creek Outlet---15 Factory Outlet (Kenosha)--910 Gurnee Mills--611 West Allis11988 Suburbs West/South Shopping Patterns in Metro Milwaukee, 1977-2000 Percentage of households reporting shopping within past 30 days at selected Milwaukee-are shopping centers

17. 1977198719972001 Bayshore20 1619 Pavilion (Mequon)--55 East Towne Square (Mequon) --46 Manchester Mall (Grafton) --57 Suburb/North Shopping Patterns in Metro Milwaukee, 1977-2000 Percentage of households reporting shopping within past 30 days at selected Milwaukee-are shopping centers

18. Commuting in Metro Milwaukee, 1960-2000 *Preliminary

19. 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 196062.136.952.7 197051.154.137.5 198048.320.432.1 199044.814.523.8 200039.512.819.0

20. The Changing Geography of Affluence in Metropolitan Milwaukee, 1960-2000 19602000 City of Milwaukee65283878 Fox Point986642 Bayside412460 River Hills138317 Shorewood865593 Whitefish Bay15561126 Mequon633*2171 Brookfield6822721 Elm Grove500682 New Berlin1511409 Delafield54969 Pewaukee118758 Wauwatosa7061212

21. Commuting by the Suburban Affluent, 1960-2000 Percentage of top quintile suburban earners working in city *Preliminary

22. Race and Low-to-Moderate-Skill Employment in Selected Cities, 1970 Percentage of workers employed as “operatives and laborers ” CityBlacksWhites Baltimore33.420.0 Chicago34.423.5 Cleveland36.231.0 Milwaukee42.924.7 St. Louis31.025.2 Philadelphia33.421.2 Pittsburgh26.318.8 Cincinnati30.620.0 Boston26.916.6 Detroit39.324.2

23. Milwaukee’s “Inner City,” 1970-2000: An Economic Snapshot 1970 2000 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

24. Lincoln Park, 1970-2000: An Economic Snapshot 1970 2000 Total Employed Residents3,6042,392 Male labor market exclusion20.9%48.2% Total employed in manufacturing1,244483 % employed in manufacturing34.5%20.2% Poverty rate3.9%17.2% Real median household income$36,392$29,746

25. The Employment Crisis in Milwaukee's Inner City (Percentage of Male Residents, Age 25-54 either Unemployed or Out of the Labor Force in Selected Areas, 2000)

26. Labor Market Exclusion: 1970-2000 Census tracts with 50% or more working-age males unemployed or out of labor force

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

28. 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

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

30. Percentage of Middle-class (above $40K) Households Living in Neighborhoods in which the Poverty Rate Exceeds 20% in Selected Metro Areas, 2000 MilwaukeeBaltimoreMinneapolis White3.52.72.3 Black46.721.925.1

31. Percentage of Affluent (above 100K) Households Living in Neighborhoods in which the Poverty Rate Exceeds 20%, in Selected Metro Areas MilwaukeeBaltimoreMinneapolis White1.51.91.1 Black42.014.416.7

32. 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

33. Corporate Executive Pay in Milwaukee, 1990- 2002 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 million13-149-1 1999$572,921$8.68 million17-1254-1 2002$625,397$5.06 million17-1140-1