The gasoline crises of 1973 and 1979 also affected Detroit and the U.S. auto industry. Buyers chose smaller, more fuel-efficient cars made by foreign makers as the price of gas rose. Efforts to revive the city were stymied by the struggles of the auto industry, as their sales and market share declined. Automakers laid off thousands of employees and closed plants in the city, further eroding the tax base. To counteract this, the city used eminent domain to build two large new auto assembly plants in the city.
What was one of the effects of having employers cut jobs and closing plants in Detroit?
eroding the tax base