If You’re Too Young to Remember Detroit
If you’re not old enough to remember Detroit in the late ’80s, it was a disaster of epic proportions. And as NYC faces its own challenges today, there are important urban decline NYC lessons to be learned. The “Motor City’s” bankruptcy wasn’t driven by exploding pension obligations — it was driven by a collapse in revenue. Depopulation and long-term unemployment crushed property and income tax revenues. The state of Michigan helpfully made things worse by slashing the revenue it shared with the city.
By 2013, there were an astounding 78,000 abandoned buildings. It became the perfect set for any apocalypse movie. You didn’t need an MBA in finance to understand the obvious: the people who pay the taxes are the lifeblood of any city. Lose them, and the city goes into a kind of chronic, progressive heart failure.
Ignoring the obvious
Apparently, this is a lesson silver-spoon socialist Zohran Mamdani is either unaware of — or simply chooses to ignore. He continues to chant his favorite mantra: “tax the rich.”
Those of us who actually study tax policy know two inconvenient facts:
- The rich are mobile, and
- They already pay a disproportionate share of total U.S. taxes.
But sure — let’s pretend they’re rooted in place like subway turnstiles.
And yet, here we are.
Urban Decline NYC Lessons
Did anyone else notice that NYC is in what looks suspiciously like an unrecoverable tailspin?
Did anyone else notice that NYC is following a path that offers shocking urban decline NYC lessons? New York City is experiencing a significant, long-term population exodus. In 2025, the city posted the second-largest outflow of residents in the country, driven largely by high living costs and taxes. Nearly 45% of those leaving are heading south, with Philadelphia emerging as a major destination — because apparently “affordable” is now a radical, extremist concept.
NYC saw a net loss of approximately 130,145 residents in 2025. Most notably, 15,552 people earning over $201,000 left between May 2024 and October 2025 — which, coincidentally, are the same people who tend to fund things like schools, infrastructure, and social programs. Minor detail, I know.
Businesses Fleeing the High-Cost Jungle
As of early 2026, New York City is also experiencing a major business exodus, with nearly 5,000 businesses leaving last year, driven by high taxes, strict regulations, and rising operating costs. Key sectors — especially finance and tech — are relocating to lower-tax, business-friendly states like Texas, Florida, and Tennessee.
But wait — there’s more good news.
New York City is now facing a severe fiscal crisis, with Comptroller Mark Levine projecting a total budget shortfall of roughly $12-13 billion across fiscal years 2026 and 2027. The deficit is driven by high spending levels, the cost of managing the asylum-seeker crisis, and the depletion of federal stimulus funds — with Mayor Zohran Mamdani himself describing the situation as a “mismanagement crisis.”
History Doesn't Lie
But sure — let’s pretend this is all coincidence.
Cities totally thrive when taxpayers and employers flee. History definitely supports that theory. Detroit certainly would agree.
And as for Zohran Mamdani’s promises? They’re as empty as the city’s coffers — just with better branding.
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