http://www.cnbc.com/id/101196425/page/1
The hardest-hit cities find themselves mired deeply in a downward spiral as cuts in services, rising crime rates and falling property values all contribute to the decline (see graphic: The Recession's Aftermath). "If you can't provide the environment for investment, the process of shrinking just continues," said Jeffrey Keefe, a labor economist at Rutgers University. "The people and businesses leave, and there's no inflow of economic resources. So all you're doing is living off external subsidies to provide law and order and some basic education and social insurance."
"We're not just competing city to suburb anymore," he said. "Our regions are competing globally. But they won't be able to sustain that competitive edge if they're burdened by the legacy of aging infrastructure and pension costs."
That has left many of America's most distressed cities to fend for themselves. "The resources are there; the question is whether they can be reallocated from the communities that have resources to those that don't," said Rutgers' Keefe.
How does this article make you think about relationship between the public and private sector?
Just makes me realize how much additional responsibility the public sector shoulders for every action of the private sector!
ReplyDeleteIf they can't stay competitive then they go bankrupt. That's just how it goes. Oh wait....
ReplyDeletelesson to be learned from the detroit bankruptcy is that those who don't adapt to changes swiftly are doomed. it's true in the case of corporations as well as cities it seems
ReplyDeleteFound the interactive map at the bottom to be very interesting. I question how accurate it is though just from seeing the results it gave for Kalamazoo. As for the comments above I agree Detroit should be used a model of what can/will happen.
ReplyDelete