[ When it comes to local affairs, I'm typically in favor of more devolution of powers to local governments, especially larger ones. On the other hand, Detroit's bankruptcy shows that local government can easily make a hash out of things. Stephen Eide makes the case for why states should exercise more not less fiscal supervision over cities - Aaron. ] Four years after the end of the recession, cities’ fiscal outlook remains unpromising (discussions here and here, esp. 53-6). Spending on healthcare and pensions continues to rise faster than … [Read more...]
Archives for July 2013
What Detroit’s Bankruptcy Teaches America
As has long been expected, the city of Detroit has officially filed for bankruptcy. While many will point to the sui generis nature of the city as a one-industry town with extreme racial polarization and other unique problems, Detroit’s bankruptcy in fact offers several lessons for other states and municipalities across America. The Day of Reckoning Can Take Much Longer Than We Think to Come What’s most surprising about Detroit’s bankruptcy is not that it happened, but how long it took to get there. In authorizing the bankruptcy filing … [Read more...]
The End of the Road for Eds and Meds
This post originally appeared in New Geography on September 12, 2012. In the last few decades, as suburbanization and deindustrialization devastated so many cities, they turned to two sectors that seemed not only immune to decline, but were actually growing: universities and hospitals. The so-called “eds and meds” sectors, often related through university affiliated hospitals, became a great stabilizer for many places. For example, the fabled Cleveland Clinic cushioned the blow of manufacturing decline in that city. Après steel, a city like … [Read more...]