Just Print the Money
Back in August, New York City’s Metropolitan Transit Authority (MTA) warned of a “doomsday” scenario—including fare hikes and service cuts—if the federal government didn’t come through with $12 billion in aid. Writing about the MTA crisis, Strong Towns founder and president Chuck Marohn said that, if he ran the money printing press, the transit agency would get the money. But he also talked about how preposterous it is that it should ever have gotten to this point. New York City has the most valuable real estate in the nation. Why is the fate of the city, and indeed the whole New York region, being left for non-New Yorkers to decide? How could New Yorkers have let this happen?
In today’s episode of the Strong Towns podcast, Chuck approaches New York’s financial woes—as well as other crises (insolvent pension funds, student loan debts, crumbling infrastructure, and more)—from a different angle. He discusses why the changes that need to be made to fix our cities won’t come about in a culture whose solution is “Just print the money.”
He also talks about how money has increasingly become an abstraction, the two elements—liquidity and narrative—needed to prop up a system of a financial abstractions, and what happens when even one of those elements falters. For example, what happens when an increasingly polarized country can’t agree on a narrative to justify printing money to solve problems like the MTA crisis, student loans, etc.? How do we say “Just print the money” to pay the bills coming due for the decades-long suburban experiment, when we can’t agree on competing versions of history, morality, and the place of the United States in the world?
Chuck ends with a deceptively simple suggestion for how to push back against encroaching abstraction...and begin building stronger towns in the process.
Additional Shownotes:
“New York transit is facing ‘Doomsday’ cuts. Should non-New Yorkers bail it out?” by Charles Marohn
“Pandemic Fallout: Will New York City Experience Long-term Decline?” (Podcast)
Check out other recent episodes of the Strong Towns podcast, as well as Upzoned and The Bottom-Up Revolution.