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Public Thinker: Kim Phillips-Fein on Austerity and the Fall of New York

With New York City teetering on the brink of fiscal collapse at the end of 1975, Congress passed, and President Ford signed, legislation that authorized loans to stabilize the City’s finances. The terms of these loans, Treasury Secretary William E. Simon later recalled, were “so punitive, the overall experience so painful, that no city … would ever be tempted to go down the same road again.” In...

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