The condition of several America’s cities may hold a lesson for the path the nation as a whole has been trending towards since the election of 2008.
A number of U.S. municipalities, most prominently Detroit, are in danger of bankruptcy or are already enduring insolvency in one form or another. A major contributing cause comes from governing leaders choosing “progressive” ideology over practicality.
In 2014, The nation’s largest city, New York, has so far managed to escape the fate of these. But that success may not continue, due to the mayoral election of an individual who may fairly be described as more focused on ideology than practicality. There is an analogy to the fate of the entire nation in this example.
The Big Apple certainly has had its share of challenges, both recently and stretching back decades. Excessive spending on social welfare at the same time that key local industries, including the maritime trade and light manufacturing were rapidly deteriorating and the stock market, a major player in the local economy, was on a downswing placed the city in a deep financial crisis in the 1970s. It managed to emerge from that cloud with the help of massive and loans and, more importantly, when more fiscally sound policies were enacted. However, Under the controversial leadership of Mayor David Dinkins from 1990—1993, the city faced repeated crises of competence in municipal service delivery and rising crime, leading many to believe that it had become “ungovernable.”
The able stewardship of Rudolph Giuliani returned NYC so substantially that many called the revived metropolis “The Capital of the World” with ample justification. While the assault of 9/11 rocked the municipality, the solid foundation that had been laid under Giuliani’s two terms allowed it to recover.
His successor, Michael Bloomberg, chose a different path than Giuliani, raising taxes to address fiscal concerns as opposed to cutting them. However, Bloomberg’s emphasis on business development and restrained spending managed to allow the city’s prosperity to continue, despite his rather odd preoccupation with intrusive matters such as the dietary and exercise habits of his constituents. During his tenure, his attempts to cut police and fire services were essentially thwarted by the City Council, allowing him to succeed almost in spite of himself.
New Mayor Bill De Blasio promises to mark a far different course than his predecessors. His background is certainly controversial. He was a supporter of the Nicaraguan Sandinista movement, which had invited Soviet military elements into that Latin American nation in the past and is doing the same for Russia today.
His ideology is essentially indistinguishable from the “Occupy Wall Street” movement, with its emphasis on hard-left ideology including increasing the tax burden as a matter of principle, eliminating the tough anti-crime stance that began under Mayor Giuliani, and attacking non-traditional public schools despite their success. He has also been tainted by a scandal involving his bizarre attack on the city’s popular horse and carriage tourist attraction, which apparently had been prompted by the desire of one of his significant campaign contributors to obtain the valuable property used by that industry. Unlike what occurred for his predecessor Bloomberg, the City Council will not thwart de Blasio’s unusual tendencies since that institutions’ newly elected leadership shares them.
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If Mr. de Blasio succeeds in radicalizing governing policies, key financial industries and major taxpayers could reduce their presence in the city, causing a major revenue gap. Additionally, the expected increase in crime and the distress of parents about turning over control of the schools to a radicalized union could result in the same type of middle-class exodus that proved to be Detroit’s downfall.
NATIONAL IMPLICATIONS
Similarly, the policies of the national government since 2008 have taken a far more radical path from those in the past. National spending for social welfare programs, similar to what has caused distress to municipalities, has soared, with little effect in reducing poverty.
A lack of fiscal support for police which in the past led to increases in crime is mirrored in the cuts to the American defense infrastructure, which is leading to increased aggressiveness on the part of those nations intent on breaking international law.
The burdens placed on key national industries as a result of overbroad EPA regulations, an aggressive federal Labor Department, and the added expenses faced under the Affordable Care Act mirror the challenges that resulted in many vital industries leaving urban centers for less regulated venues.
The practices that have shaken confidence in local governments in Detroit, Chicago, and other cities find a counterpart in questions about the distribution of stimulus dollars by the White House as well as in the growing lack of trust due to the IRS, Benghazi, Fast and Furious, and other scandals.
Whether the Executive Branch will take note of the fate of troubled cities and changes its course remains to be seen.