Rust Belt cities have long been trying to respond to social and economic decline. Some officials continue to pursue a revival of manufacturing. Academics and, to a lesser extent, policymakers have tried to develop “shrinking city” agendas that start by recognizing that postindustrial cities are not likely to return soon to postwar economic health. But political necessity forces most city officials to focus more on revitalization than on how to manage decline.
Any policy designed to revive the Rust Belt must come to terms with the deep fiscal challenges faced by these city governments. Despite steadily weakening tax bases, Rust Belt local officials have continued to increase debt and retirement-benefit burdens. The result is tremendous strain on city budgets.