The Public Interest

New York City’s fiscal crisis: the politics of inflation and retrenchment

Martin Shefter

Summer 1977

THE current New York City fiscal crisis is above all a political crisis. Its origins lie in a set of political changes the city experienced in the 1960’s, which led municipal expenditures and indebtedness to grow at an explosive pace. And the eruption of the crisis has produced a further transformation in the structure of the city’s politics.

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