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Topics are in the instruction - Essay Example

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The fiscal crisis of cities, also called urban fiscal crisis, in the 1970s is a period marked by urban economic and political instability in the United States. Previous to this and immediately after World War II, the world saw a rise in robust capitalism which benefited…
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Topics are in the instruction
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Download file to see previous pages The American manufacturing companies, in trying to soften the impact of the economic crunch, resorted to several strategies aimed at restoring growth and profitability. One strategy adopted was “flexibility” which entailed shifting out their operations to areas within and outside the country which would minimize operational and labor costs. The target areas were those which had low-wage anti-labor policies in place. Thus, between the years 1969 and 1976, many of the major cities which previously housed large manufacturing plants found themselves at the edge of bankruptcy because of job and revenue losses brought about by the closures of these plants (Gibson 39).
The growing revenue deficit brought about by manufacturing relocations and closures was aggravated by “outmoded capital facilities, declining tax bases, soaring demand for public services, debt ceilings and taxpayer rebellions” which resulted in the inability of these cities to prevent the widening gap between expenditures and revenue resources. To avert catastrophe, many of these cities resorted to increasing taxes, abolishing jobs, calling off or deferring construction projects, and even cutting services (Cooke 2007 pp 213-214).
The HOPE VI program is a housing policy passed by the US Congress in 1993 which is aimed at alleviating poverty in public housing. It targets three areas: physical improvements; management improvements and; community services to address resident needs” (Hope VI, Public and Indian Housing). HOPE VI’s primary distinguishing feature is that it is not underpinned by distribution of residents of housing projects to various communities but to revive the housing projects themselves. The Housing & Urban Development’s budget for this project is pegged at $5.6 billion covering 231 areas all over the country (Arrighi & Maume 2007 pp79).
To make HOPE VI housing projects viable, the project involves the ...Download file to see next pagesRead More
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