Aaron Renn: Struggling Cities

CityLab:

940.jpg
Too often, states try to help these cities through massive spending or tax giveaways. The disgraceful Foxconn and Amazon HQ2 site selection processes are emblematic of what goes on every day across America. Massachusetts included Pittsfield in its list of proposed Amazon HQ2 sites, for example, and Atlantic City, New Jersey, also put in a bid. But decades of subsidies haven’t worked and won’t work.

Instead, deeply challenged smaller post-industrial cities should do the basics: Local governments must address their often huge unfunded liabilities and get to structurally balanced budgets. They should reform their governance where necessary, especially by eliminating corruption. And, they need to start rebuilding core public services, especially public safety but also parks, etc. Make no mistake, this will require help from federal and state governments, and may involve painful steps like bankruptcy and prosecutions.