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What is now Calumet was settled in 1864, originally under the name of Red Jacket. The town was named for a Native American Chief of the Seneca tribe. Until 1895 the name "Calumet" was used by the nearby town of Laurium, Michigan; present day Calumet was not legally named so until 1929.
"Red Jacket" grew due to the copper mines in the area. It was incorporated as a town in 1867. The copper mines were particularly rich; the Red Jacket based Calumet & Hecla Mining Company produced about half of the USA's copper in the 1870s and 1880s. In addition to copper mining and smelting, the region also supported the dairy industry and truck farming.
By 1900, Red Jacket and the surrounding company towns had a population of some 60,000.
In 1913 Red Jacket suffered from mining labor strikes, and the population began to decline.
In 1921 the United States Federal Government stopped buying copper, as it had a large surplus stockpile. With the decreased demand for copper, thousands left Red Jacket in the 1920s, many moving to Detroit, Michigan where the automobile industry was booming.
In 1929, Red Jacket and surrounding company towns were reincorporated as the town of Calumet.
In 1950 the population of Calumet was 1,256 people.
Calumet is at an elevation of 1,209 feet above sea level.
As of the census of 2000, there are 879 people, 387 households, and 136 families residing in the village. The population density is 1,786.2/km² (4,524.2/mi²). There are 491 housing units at an average density of 997.8/km² (2,527.1/mi²). The racial makeup of the village is 98.98% White, 0.00% African American, 0.00% Native American, 0.00% Asian, 0.00% Pacific Islander, 0.23% from other races, and 0.80% from two or more races. 0.80% of the population are Hispanic or Latino of any race.
There are 387 households out of which 20.2% have children under the age of 18 living with them, 19.9% are married couples living together, 12.4% have a female householder with no husband present, and 64.6% are non-families. 58.1% of all households are made up of individuals and 25.8% have someone living alone who is 65 years of age or older. The average household size is 1.85 and the average family size is 3.12.
In the village the population is spread out with 20.0% under the age of 18, 24.8% from 18 to 24, 21.8% from 25 to 44, 15.8% from 45 to 64, and 17.5% who are 65 years of age or older. The median age is 29 years. For every 100 females there are 95.8 males. For every 100 females age 18 and over, there are 91.6 males.
The median income for a household in the village is $17,404, and the median income for a family is $22,750. Males have a median income of $21,667 versus $18,125 for females. The per capita income for the village is $12,111. 35.0% of the population and 29.0% of families are below the poverty line. Out of the total people living in poverty, 50.5% are under the age of 18 and 18.9% are 65 or older.