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5.NeoliberalCityWinter2020.zip

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Governing the Neoliberal City

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Unequal Cities

Ruling Los Angeles: A History of Power

Growth Machine: Class Power in the American City

From Keynesian to Neoliberal Urban Governance

Caging Grassroots Activism in Neoliberal Growth Machine

Governing the Poor

Think Pair Share:

Which groups dominate city politics and government?

Why?

1. Ruling Los Angeles

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Economic Context:

Core Members and Objectives:

The Ruling Class: Part I (1880s-1950s)

Harry Chandler

Speculation Strategy:

Form Land Syndicates

Co-Invest in HUGE Chunks of Land

Subdivide Land into Tracts

Provide Infrastructure to these Lands:

Stimulate Demand: Boosterism

Bolstering Downtown Properties:

Norman Chandler

The Ruling Class: Part I (1880s-1950s)

The Role of Government:

Infrastructure to Support Growth

Repression of Dissenters (Unions, Socialists, Communists)

The Ruling Class: Part I (1880s-1950s)

Dispersing Investors from the Center

Retail:

Industry:

Hollywood:

The Ruling Class: Part I (1880s-1950s)

Dispersing Investors from the Center

Retail:

Industry:

Hollywood:

The Ruling Class: Part I (1880s-1950s)

Downtown Growth Machine:

Core Members and Objectives:

Relations:

Political Power:

Major Projects: Reinforcing Downtown Centrality

Massive Revelopment:

The Ruling Class Divided: Part II (1950s – 1970s)

Urban Renewal: Making ‘Good’ Business Environments and Pushing Minorities and Poor into Ghettos / Barrios

Urban Renewal in Los Angeles: Community Redevelopment Agency

The “Chicano Removal Agency” : Bunker Hill and Chavez Ravine

Bunker Hill 1950

Bunker Hill 1990

Chavez Ravine, Before

Chavez Ravine, During

Chavez Ravine, After

The Ruling Class Divided: Part II (1950s – 1970s)

The Changing Bases of Economic Power:

Defense and Aeronautics:

Savings and Loans:

The Ruling Class Divided: Part II (1950s – 1970s)

West Los Angeles Growth Machine:

Power Base:

Relations:

Objectives:

Political Power:

“Unruh-Ahmanson Political Machine”

The Ruling Class Divided: Part II (1950s – 1970s)

Responding to Urban Crisis: Making Amends through Tom Bradley

Downtown Elite – Facing the Threat of Extinction

Tom Bradley: Peace Maker of Growth Machines?

The Ruling Class Divided: Part III (1950s – 1970s)

Mayor Tom Bradley and Otis Chandler

2. How do we explain for the power of economic elites?

Growth Machine

Defining the Upper Class (Generally):

Structural Position (owners, managers)

Relations and Culture

Political Power:

Growth Machine: Class Power in the City

Koch Brothers and Vice President Pence

 Dependency on Economic Elites

“Increasingly I found myself spending time with people of means –law firm partners and investment bankers, hedge fund managers and venture capitalists. As a rule they were smart, interesting people, knowledgeable about public policy, liberal with their politics, expecting nothing more than the hearing of their opinions in exchange for their checks. But they reflected, almost uniformly, the perspectives of their class: the top 1% or so of the income scale that can afford to write a $2000 check to a political candidate.”

Convergence of World Views

“I know that as a consequence of my fundraising I became more like wealthy donors I’ve met, in the very particular sense that I spent more and more of my time above the fray, outside the world of immediate hunger, disappointment, fear, irrationality, and frequent hardships of the 99% of the population–that is, the people I would I had entered public life to serve. In one fashion or another, I suspect this is true for every senator: The longer you are a senator, the narrower the scope of your interactions.”

Growth Machine

Economic Interests: Buy cheap land, redevelop it, resell at profit

Land Developers as Collective Actors

Value of Land is Relational

Requires Cooperation among Competitors

Multiplicity of Coalitions: Depending on Scale, Projects, Size

Is there an URBAN Ruling Class?

Growth Machine: Class Power in the City

2. Relations among Urban Upper Class

Growth Machine: Class Power in the City

3. Exercising Political Power: The Growth Machine

Structural Interdependencies:

Why do Land Entrepreneurs Depend on Local Politicians?

Why do Politicians Depend on Land Entrepreneurs?

Social Ties that Bind:

Strong Ties

Common Norms

The Value of Strong Ties

 

 

The Auxiliary Players (selective incentives):

Organized labor

Media

Utilities

Universities

Museums:

Sport Franchises

Growth Machine: Class Power in the City

Legitimation Functions

Discourse

Create Identity: “Go Team!”

Justification: “Growth is Good for all”

Organizations and Institutions

Employ Discourse

Disseminate Discourse

Naturalize Discourse

The Special Role of Intellectuals

3. Exercising Political Power: The Growth Machine

Growth Machine: Class Power in the City

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Government

Developers / Investors

Money

Authority

Relations

Systemic Interdependencies

Growth is Good

Growth is Good

Growth is Good

Aux. Unions

Aux. Sports

Aux. Media

Aux. Museum

Aux. University

Aux. Planners

Growth is Good

Legitimation Functions

Growth is Good

Growth Machine

Growth Machine: Class Power in the City

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Hard Supports:

Infrastructure

Tax credits

Subsidies and loans

Soft Supports:

Boosterism:

Nice Cultural and Sports Attraction

Ideological support

Create “Investor Friendly” Environments:

Growth Machine: Class Power in the City

NY Times, Nov. 13, 2018

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Liberal Growth Machine:

Philosophy: Regulation and Social Programs  Re-distribute Growth Benefits

Community Benefits Agreements

Living Wage

Rent Control

Conservative Growth Model:

Philosophy: Government Intervention Repels Investors

Cut zoning regulations

Keep wages down

No rent control

Mayor Gil Garcetti

Growth Machine: Class Power in the City

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3. From Keynesian to Neoliberal Urban Governance

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Keynesian Capitalism (1930s to 1970s):

Goal: Balance Growth between Rich and Poor Regions

Rationale: Spur Consumer Demand, Contain Overheating Rich Regions, Reduce Inequalities

Policy: Redistributing Wealth and Industry throughout the Country

From Keynesianism to Neoliberalism

Keynesianism: Regional Equality = National Prosperity

Territorial Management during Keynesianism

Urban Managerialism

Feds Design Housing Policies

Cities Manage and Implement

Re-Distributive Spatial Policies

Effects: Balanced Growth

From Keynesianism to Neoliberalism

The Death of Keynesianism: The Three Suspects

Economic Rupture: Serious Problems

Ideological Rupture: Neoliberal Economics

Political Rupture: Translating Neoliberal Ideas into Public Policy

From Keynesianism to Neoliberalism

“The choice facing the nation is between two totally different ways of life. And what a prize we have to fight for: no less than the chance to banish from our land the dark, divisive clouds of Marxist socialism and bring together men and women from all walks of life who share a belief in freedom.” (Margaret Thatcher, Speech, 1983)

Milton Friedman

Ronald Reagan (US) and Margaret Thatcher (UK

Neoliberal Capitalism (now):

Goal: Creating Growth Poles out of Rich Global Cities

Rationale: Rich Cities Drive National Growth (i.e. regional trickle down)

Policy: More Infrastructure to Winning Regions, Encourage Competition

From Keynesianism to Neoliberalism

Neoliberalism: Rolling Back Keynesian Support to Cities

From Keynesianism to Neoliberalism

Programs 1981 1993 Percentage Cut
Community Development Block Grant $6.3 billion $4 billion -36.5%
Urban Development Action Grant .6 0 -100%
General Revenue Sharing 8 0 -100%
Mass Transit (rail, buses) 6.9 3.5 -49.3%
Assisted Housing 26.8 8.9 -66.8%
Clean Water Construction 6.0 2.6 -56.7%
State Prison Expenditure 6.8 22 +228%

(Eisinger 1997)

Effects on Localities:

Decline in Federal Money for Services (in a context of fast de-industrialization):

Increased Dependence on Local Taxes:

More Focus on Economic Development:

From Keynesianism to Neoliberalism

Disciplined by Inter-Urban Competition

Intensify Growth as a Source of Economic Life

The Pillars of Economic Development

Branding strategies: Industry, Consumption, Command and Control Specialization

Tourism

Creative Class and Gentrification

Economic Development Incentives

From Keynesianism to Neoliberalism

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Prioritizing Businesses over the Poor:

Distribution of Risks and Reward

Public assumes risks

Private captures most rewards

From Keynesianism to Neoliberalism

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Competition as a Disciplining Force:

Constraints on City Officials

End of Keynesianism (declining taxes and federal subsidies)

Globalization and Capital Mobility

Inter-Urban Competition as Disciplining Force

From Keynesianism to Neoliberalism

“Even the most resolute and avant garde municipal socialists will find themselves, in the end, playing the capitalist game and performing as agents of discipline for the very processes they are trying to resist” (David. Harvey 1989: 5).

From Keynesianism to Neoliberalism

Enticing Investors: Amazon HQ2 Competition

1. Los Angeles, 2. New York City, 3. Crystal City, Virginia

Group Exercise: Your team has been tasked with developing a project to attract Amazon to invest in your city.

Why engage in this competition?

What are the attributes that would make your city a good investment for the headquarters of Amazon?

What types of support would your city provide to Amazon?

Who are the likely winners and losers with investment?

4. Caging Grassroots Activism in Neoliberal Growth Machine

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Partnering Up with the Grassroots

Decentralization and Privatization

The Role of Community Partners: Community Development Corporations

Methods of Management:

Clientelism: City Councils Hold the Purse Strings:

Technocratic Dominance and Professionalization

Caging Grassroots Activism in Growth Machine

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Professionalized Nonprofit Organizations

Best Resourced, Most Connected Residents Participate

Legitimating Language

 

Caging Grassroots Activism in Growth Machine

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Competition according to New Rules Compels Organizational Conformity

Homogenization of the Local Grassroots

 

Caging Grassroots Activism in Growth Machine

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Government

Developers / Investors

Money

Authority

Relations

Systemic Interdependencies

Growth is Good

Growth is Good

Growth is Good

Aux. Unions

Community Organization

Aux. Media

Growth is Good

Legitimation Functions

Growth is Good

Caging Grassroots Activism in Growth Machine

Community Organization

Community Organization

Growth is Good

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5. Governing the Poor through Increased Repression

Jailing the City

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Jailing the City

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Jailing the City

Police Brutality

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Jailing the City

Police Brutality

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Governing Homelessness

Policing the Poor in the Gentrifying City: Skid Row Los Angeles

Past Strategy (1960s – 2000): Containment

Internal Policing: Toleration

External Regulation: Cordoning off the Poor

Governing Homelessness

Homelessness as an Impediment of Gentrification

Governing Homelessness

Homelessness as an Impediment of Gentrification

Internal Regulation: ”Safe Cities” Initiative - Criminalizing the Homeless

"Some of these people do need help, but the majority of these people do not need help. They just need the push to get out. (LAPD Officer Mike Fernandez, LA Times, 9/9/2007).

“Church groups that deliver food directly to people on the streets are enabling them. Why would they get up and go if someone is out here feeding them every day? It's almost like a child. If you set some type of guidelines and restrictions, he'll be a positive person in society. If you allow him to do whatever he wants, he will" (Los Angeles City Developer, LA Times 11/18/2008).

Governing Homelessness

Growth Machine: Class Power in the American City

Ruling Los Angeles, a brief history

From Keynesian to Neoliberal Urban Governance

Caging Grassroots Activism in Neoliberal Growth Machine

Governing the Poor