How Did NYC Deteriorate So Much by the 1970s?

Liberals and democrats often bear the brunt of criticism for the decline of New York City in the 1970s. This perception, however, may not fully capture the complex economic, social, and political dynamics that led to the city's pronounced decline.

Loss of Manufacturing Jobs and Economic Shifts

The deterioration of New York City by the 1970s primarily emerged from a significant shift in the city's economic landscape. A substantial part of the city's tax base left, along with the vast array of manufacturing jobs that once defined the urban core. As these jobs disappeared, those who could afford to moved to the suburbs, searching for more stable economic prospects and a better quality of life. Concurrently, some jobs relocated to suburban areas, accentuating the economic disparity and leading to further urban decay.

Financial and Economic Crisis

By 1974, New York City faced a severe fiscal crisis that was exacerbated by factors such as high inflation and rising oil prices. Gasoline rationing and the overall economic downturn contributed to a critical juncture where the city was on the brink of bankruptcy. The population in the city consisted mainly of the poor and underemployed, a trend often linked to the phenomenon of "white flight" during the mid-20th century. The abandonment of homes, sometimes through arson, to collect insurance was a common occurrence, further deteriorating the urban environment.

Planned Shrinkage and "Benign Neglect"

City leadership adopted a strategy known as "Planned Shrinkage," aimed at revitalizing the city by fostering economic recovery. This involved drastic cuts to social spending, jobs, and city services, which exacerbated the problems in the already struggling neighborhoods. The logic behind Planned Shrinkage was to prioritize the economic revival of the city by targeting "slum areas," leading to policies that included closing firehouses and local services. The intent was to create a self-reinforcing cycle of decline in these neglected areas, which would ultimately facilitate urban renewal and gentrification.

Impact on Public Services and Infrastructure

The financial strain on the city also led to a severe lack of resources for public services and infrastructure. Trash collection systems faltered, leading to the infamous "filthy city" image. Subway cars were left covered in graffiti, and other public facilities fell into disrepair. This neglect manifested in the public's daily lives, contributing to the urban decay that defined the city in the 1970s.

Accounting Practices and Banking Issues

The economic crisis was further compounded by improper accounting practices where the city engaged in borrowing money and hiding the loans under capital expenses. This transparent attempt to mask the fiscal realities of the city led to a crisis when banks ceased to purchase New York municipal bonds, leaving the city with no means to fund its debts.

Roles of Government and Economic Policy Change

The 1970s marked a significant shift in the role of government, with some suggesting that it presaged the transition towards the fiscal conservatism promoted by the Reagan Administration. This period saw a shift from the belief that government could solve economic issues to a new understanding that market-driven solutions might be more effective. While this policy shift represented a new approach, it did not immediately solve the issues that plagued New York City during this tumultuous decade.

Conclusion

The deterioration of New York City in the 1970s was a multifaceted problem with deep roots in economic shifts, poor governance, and shifts in public policy. It was not simply a matter of liberal policy failing, but rather a series of complex and interconnected issues that led to the city's struggle to maintain its former glory. Understanding these factors is crucial for properly addressing the issues that still face New York City today.