As a result of the economic damage caused by COVID-19, New York City is facing a budget deficit of about $9B for the current fiscal year and a similar deficit in subsequent years.  Some commenters say that this is the most significant fiscal crisis we’ve faced since 1975, even factoring in the 2008 Great Recession.  

For obvious reasons – because we’re in a global pandemic – the circumstances from 1975 are different, but there are still many similarities between 2020 and 1975.  

For example:

• The City has begun to make significant cuts to city services
• People are out of work, and unemployment is at record levels 
• In a press conference addressing the current gap, the Mayor raised the possibility of borrowing funds to cover operating expenses;
• Crime is supposedly rising
• The president has scapegoated New York City for the problems caused by COVID; and
• Federal Senators have suggested that New York should go bankrupt.

The importance of knowing history is what to avoid.  So in this episode, we are going to gain political, social, and economic lessons from that tumultuous moment in 1975 and apply them to now.  

Photo Credit: Gary Hershorn