America's cities are broken. (Photo by Mario Tama/Getty Images)

When my grandparents migrated to New York from Russia over a century ago, they found a city that was hardly paradise, but one that provided a pathway towards a better life. Life was tough, crowded and always a paycheck from poverty. My relatives were poor, but so was everyone; eventually, they all bought houses or apartments, and entered the middle class. As for crime in their native Brownsville, the home of Murder, Incorporated and other villainous enterprises, it rarely impacted “civilians”; my mother would tell me how a young girl could still walk across Prospect Park without fear of assault.
Today’s urban promise is, however, vastly different — not only in New York, but San Francisco and Los Angeles, London and Paris. No longer cities of aspiration, they are increasingly defined by an almost feudal hierarchy: the rich live well, protected by private security and served by local coffee shops and trendy clubs.
Meanwhile, the working class struggles to pay rent, possesses no demonstrable path to a better life and, as a result, often migrates elsewhere. Crime rates are spiking and homelessness, once an exception, is increasingly widespread. Those very streets once said to be “paved with gold” are now are filled with discarded needles, excrement and graffiti.
Indeed, what we are now witnessing is the decline of former New York Mayor Michael Bloomberg’s description of the city as “a luxury product”. Today, that sense of “luxury” has all but vanished, with modern urban economies promoting class divisions rather than upward mobility. Amid all the hoopla about urban revival, the truth is that entrenched urban poverty in the US — places where 30% or more of the population live below the poverty line — actually grew in the first decade of the new millennium, from 1,100 to 3,100 neighbourhoods.
Even the New York Times admits that, in the past decade, cities have gone from “engines of growth and opportunity” to places where class relations are increasing fixed, with only the upper end of the income spectrum doing well. Gotham’s one percent earns a third of the entire city’s personal income. That’s almost twice the proportion for the rest of the country. But such class disparity is becoming the norm; in the tech haven of San Francisco, which has the worst levels of inequality in California, the top 5% of households earn an average of $808,105 annually, compared with $16,184 for the lowest 20%.
Predictably, those at the bottom of this new feudal structure suffer the most; today, the old saying that “the city air makes one free” all too often means freedom to be poor, to experience endemic homelessness, collapsing public infrastructure and rising crime.
And that was before Covid hit. Already many poor urban residents subsisted on transfer payments or worked in service industries. They were paid, usually poorly, to clean now-empty offices or work in restaurants and hotels. The lockdowns, whether justified or overwrought, have since pummelled these low-income workers; roughly 40% of Americans earning under $40,000 a year lost their jobs last March.
Unlike workers who occupy “the commanding heights” of finance, tech, marketing, and media , these people did not have the option of working from their kitchen tables or moving to suburban locations or smaller cities. Nor could they count on education systems to work their magic; most schools in American inner-city districts, in contrast to many suburbs and smaller cities, remained closed.
All of which meant America’s urban districts were ripe for civil unrest when George Floyd died last May, and these festering conditions exploded into the worst national rioting in decades. Parts of many cities went up in flames, the damage of which was obscured by mainstream media’s mantra of “mostly peaceful protests”. The constant rioting and demonstrations in Portland, once seen as a paragon of new urbanist-led revival, has all but destroyed its downtown, which is now largely bereft of pedestrians.
Remarkably, despite the dramatic rise in homicides, the city seems likely to continue its programme of de-funding the police. In many cities — Los Angeles, Minneapolis, San Francisco, St. Louis, New York — “progressive” district attorneys have worked assiduously to restrain law enforcement. In California, where it is no longer considered a felony to steal anything worth less than $1,000, there has been a surge in property crime, including a huge rise in car thefts. San Francisco, for example, has seen the drug store Walgreens close ten outlets since 2019, citing elevated levels of theft and weak law enforcement. Meanwhile New York’s bodegas, small markets in ethnic neighbourhoods, experienced a 222% increase in burglaries last year.
The repercussions of this extend well beyond the criminal and judicial spheres. As cities slowly fall to pieces, they are increasingly becoming no-go zones for investors and business, except for those who see opportunity investing in suddenly distressed properties; barely ten per cent of US companies are interested in investing in large urban areas. A friend who runs a biomedical company had his warehouse burned down in the post-Floyd Minneapolis riots. When I asked him whether he would rebuild, he said yes — but in the suburbs of Tampa, Florida, or Atlanta.
Yet a number of progressives insist that the current urban exodus of wealthy residents is not a cause for concern, as it allows a more fair society to be “reborn”. Such a naïve approach forgets that there is one problem with expelling the rich: in New York, for example, the “one per cent” pay 43% of the city’s income taxes. The same is also true in California, where the top 1% of the population pays half of all income taxes. Even London now depends almost entirely on the wealthy to keep its economy afloat.
But today’s activist Left does not seem to be concerned with economics — or, for that matter, much of the real world. In New York, activists have helped put an end to proposals for new jobs from Amazon, as well as a recent “Industry City” proposal in Brooklyn. In Seattle, the doggedly radical city council is working overtime to also push out Amazon — the company that has driven much of the region’s economic growth — to the surrounding suburbs and other regions.
But expelling tech oligarchs will not stabilise cities, improve the schools or lure business development. It certainly will not correct the fiscal crises faced by many cities, nor generate upwardly mobile jobs. Cities do not thrive by having more cutting-edge coffee shops, trendy restaurants and edgy boutiques; they need safe streets, decent schools and jobs for middle and working-class families.
Wishful thinking will not spark an urban revival. Yes, the decline of first-tier conurbations might enliven smaller cities. But overall, society as a whole will still lose. Dense urban places have always been critical in the development of culture and social behaviours. They remain crossroads of trade for goods as well as ideas, in ways that more dispersed places, even in the internet age, are not always suitable. Our cities are far from perfect. But a post-urban future could be even worse.
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SubscribeA free market allows suppliers to compete to win business from all of us. We pick the suppliers who do it best. That’s democracy; every. single. day. That’s why the Left hate it. They want to choose for us what our allowance for the day will be, and for us to kiss their back sides in gratitude.
But it doesn’t allow workers to pick which business to work for in aggregate, because there is no public employer of last resort.
People have to get hired to eat. Businesses only need to hire if there is a profit to be had. Which is why we have a systemic shortage of jobs – 3,500,000 without work that want it, and only 500,000 vacancies. That’s a five out of six lack of jobs.
It is this power asymmetry that explains why the ‘free market’ doesn’t really exist. ‘No deal’ isn’t an option. Correct that and businesses will have to compete – for both customers and labour, which then drives forward productivity and automation. Learning to do more with less.
No more bailout for failing businesses because ‘what about the jobs’.
No more cheap labour and suppression of the labour share of output.
We can turn competition up to 11. Those businesses that increase their capital depth and productivity will survive. Those that don’t will die.
If you want a free market, everybody has to be able to walk away from it and come back when there is a better offer on the table.
So let’s create one and transition the furlough scheme to true full employment. Let’s see what a truly free market can achieve. One permanently free of the threat of unemployment.
Well your dream seems to have come true in the US, where millions are refusing to take available jobs because the govt is paying them so much in Covid relief etc.
In March, the US government sent a one-time $1400 stimulus check to 90 million Americans, most of whom have few to no savings while it is notoriously hard to receive unemployment benefits. Hardly a welfare culture.
You’ve been watching too much FOX Murdoch media lies.
I am a huge proponent of universal basic income. A €1000 monthly unconditional allowance would change the lives of most working-class and middle-class people.
Coupled with a very strict migration policy, this would reverse the power relationship between workers and their corporate lords.
Where will the £600bn come from each year?
People who work of course…
Thats about £700 per month. JSA is £75 plus rent/mortgage plus council tax so probably a single unemployed person already gets that amount. The unemployed who lose out are couples who get about £100 per week plus other benefits -so they would do better.
well this aged well
That sounds good on paper but in practice, a free market economy inexorably reverts to some form of feudalism. Thanks to the magic of mergers and acquisitions, every market ends up being dominated by a few mega-corporations which in turn use their dominant position to jack up prices and fleece consumers.
Thanks to their strong lobbying powers, corporate elites are able to capture the State, and public institutions are subverted to serve private profit.
In the name of free markets, corporate elites demand privatization when the economy is doing well, so they can acquire assets, but in hard times, predators cast themselves as too big to fail and use their political power to get protection from the state, even getting the government into debt to ensure their survival.
In other words, socialism for the rich and capitalism for the poor
The Free Market mantra has one major flaw, it does not account for our very twisted human nature. Thomas Hobbes considered humans to be naturally vainglorious and so seek to dominate others, hence the need for a strong government able to keep everyone — and especially the powerful — in check.
This is the plague of our age. All across Western Europe, many voters like myself — who are economically progressive but socially conservative — find themselves stuck in political limbo.
I feel exactly the same, Noah.
It’s sort of inevitable that even if political culture changes over time, it won’ t do it all at once, isn’t it?
But there is nothing inherent in conservatism, historically, that says it’s not interested in big projects, or spending, or interventions in the economy. The Conservative Party, and certainly conservatism, did not just begin to exist in 1975.
I think there is a sense of some of that last forty years of fiscal thinking that is no longer taken so much for granted among conservatives throughout the west. Certainly looking at things like protectionism or building up of national capacities and industries is not entirely compatible with the globalist free-marketism of many recent conservatives. Concerns about movement of labour which at the moment are being most heard by conservatives are opposed to the principles of globalist capitalism (though not traditional conservatism going back for a much longer period of time, or leftism for that matter.) I even read an article recently about a program for housing the homeless, in a very conservative North American city, where the mayor said it just made fiscal sense to do this as it ultimately cost the state more to deal with a large homeless population.
I have watched the interview and have to say was very impressed with Houchen. He was very up front about the airport saying if it failed it wouldn’t be saved but added that he’d told the people of Tees Valley that this was the case. With regards to freeports, managing to get a large company such as GE to build a manufacturing site on the freeport was also impressive. What ever his free market sensibilities, Houchen seems to be doing his best to give the people of Tees Valley a better future.
Free Trade Fundamentalism? Really? Free trade has brought more prosperity, more freedom, increased health, education and a better quality of life to billions around the world.
People generally do not want the government telling them how to live their lives, they want to be left alone. Yes, a government should create the conditions for trade to flourish and then generally leave it alone with simple and effective regulation. That is what the Conservatives usually represent. the last year has been different for obvious reasons.
The reasons the Conservatives continue to survive and flourish is that they can change to changing circumstances but the core philosophy remains.
An interesting viewpoint and one more reason I’d like to see Unherd post a few extended essays on how to achieve greater economic equality post-pandemic without bankrupting future generations by printing massive amounts of money. Economics seems to be a topic Unherd avoids except in 500-word ‘idea’ pieces.
Could Ben explain why Labour won the nearby North Tyneside mayoralty election?
Except that Thatcher increased the size of government. True she privatised some stuff but she definitely created bigger government that actually implements policy. The tories like big government probably as much as labour.
Google ‘Teesside regeneration’
No one is being fooled.
Currently the economic consensus is on productivity gains, growth towards net zero and reducing spatial inequalities with the Left favouring State Welfarism in balance with Corporate Welfarism alongside global Wokeism and the Right favouring Corporate Welfarism in balance with State Welfarism alongside national ecological rationality.
Something like that anyway.
However, this consensus needs to be contextualised within reducing surplus carbon energy which is simultaneously in a direct relationship with prosperity and an inverse relationship with carbon emissions within the context of human population growth.
https://surplusenergyeconomics.wordpress.com/2021/05/16/199-an-american-nightmare/comment-page-1/#comment-24986
It sounds complicated because it is. We are entering an unprecedented period in the history of the human species and grandstanding cultural dogma which discriminates on the basis of race, ethnicity, colour, sex and gender or a nondescript Socialist State that does not take into consideration surplus energy economics is not exactly the best way to prepare ourselves culturally or economically for a crisis ridden future.