Economic impact of pandemic for city governments

Melissa Swartz
Melissa Swartz Posts: 270 ✭✭✭
edited October 2020 in COVID-19/Coronavirus

This analysis looks at the sources of income for various cities and predicts which ones will experience budget distress. "The coronavirus recession will erode city budgets in many insidious ways." And it cuts across political parties.

"What matters more in this pandemic moment is how a city generates money: Those highly dependent on tourism, on direct state aid or on volatile sales taxes will hurt the most. Cities like Boston, which rely heavily on the most stable revenue, property taxes, are in the strongest position — for now."

I personally think that the economic effects have only just begun. What are you seeing in your area?


  • judsoncarroll4
    judsoncarroll4 Moderator Posts: 4,000 admin
    edited August 2020

    Many wonder if NY will ever recover. People who worked in offices can now work from home and the employer doesn't have to pay high rent. Restaurants that depended on them, and tourists and Broadway are taking a huge hit. Bars and gyms closing. Cabs have none to take anywhere. The hotdog vendors have no one to sell to. Reduced revenue equal reduced taxes. People leaving the city... fewer schools open. Empty buildings, deteriorating roads and no money to fix them. Crime and rioting turning the cites into absolute hell. Fewer people wanting to become police and budget cuts. Overwhelmed social services. This is likely the biggest blow to urbanization humanity has experienced since WW2, and really the first major, long term, blow in America since Sherman burned Atlanta. Add a pandemic and rioting to wildfires, blackouts, feces and needles all over the place in several major cities.... and to many folks, Amish Country looks GREAT!!!!!!!!!!

  • Leediafastje
    Leediafastje WA State, Olympic Mtns, Zone 8Posts: 68 ✭✭✭

    I don't live in Amish Country but, out here in the forest of the Olympic Mtns of Washington state the forest industry is still alive and well. Especially since Canada is no longer sending the volumes of lumber they used to send to the U.S. Our little community is still employed, our seasonal vegetable stand is still stocked with our local produce. Our year around butcher and vege stand are still thriving on the support of our little community. I feel fortunate to have landed "way out here."

  • ltwickey
    ltwickey Posts: 372 ✭✭✭
    edited August 2020

    @judsoncarroll4 I agree with you on all accounts. I am hoping the winter weather is bitter and cold, keeping people indoors. Numbers prove that crime increases in the hot summer months and decrease in the winter (though domestic violence increases). 2020 has been a year of sheer nonsense. People have truly gone totally crazy! I find myself needing to get re-gauged to ensure I'm not the mentally challenged one in the room!!

    Up here in the NE area of the states, economies seem to be doing ok. Have not seen many CLOSED signs on businesses in the community, which is a blessing.

    EDIT: Language. A reminder that this is a family friendly forum. - Admin

  • LaurieLovesLearning
    LaurieLovesLearning Moderator Manitoba, Canada 🍁 zone 3, PrairiesPosts: 4,570 admin

    This is no surprise. What you described really parallels the downfall of many great civilizations. You know, those never last. Each has its day.

    It will be interesting to see what happens to many countries the world over.

    We were just talking about the effects & ripple effects of the mental state of everyone, and how it will especially affect those still forming ideas about the world around them. This, on top of everything else. What a gift to them. Those poor kids.

    I can see N.A. quickly becoming a place nobody wants to be, much like certain countries on the other side of the Atlantic. Comfortable, safe & civilized won't be the words to describe it anymore.

  • Annie Kate
    Annie Kate Eastern Ontario, CanadaPosts: 683 ✭✭✭✭

    Yes @judsoncarroll4 and @LaurieLovesLearning there seem to be big, permanent changes going on.

    Those who have self-sufficiency skills will be best able to care for their families and help in the community. They will be able to give practical advice as well as teach hope-building real life skills, to adults as well as to kids. Those who have strong faith will be able to soothe and comfort those around them just by being peaceful and trusting.

  • LaurieLovesLearning
    LaurieLovesLearning Moderator Manitoba, Canada 🍁 zone 3, PrairiesPosts: 4,570 admin

    @Annie Kate There are Mennonite areas about an hour from us. (That is funny saying that...we are Mennonite too, but don't adhere to a Mennonite church.) They are of various persuasions. I have invited some of them whom I have met to browse here on TGN & the forum. I don't know how much they will take part, but I certainly hope that they do! Each family has such a wealth of knowledge.

    We have been admiring what we have been seeing from them & they are exactly as you say.

  • Annie Kate
    Annie Kate Eastern Ontario, CanadaPosts: 683 ✭✭✭✭

    Yes, @LaurieLovesLearning, there's something about the Mennonites--so much old-time wisdom! Mind you, some kinds are just as modern as everyone else. The Hutterites know a lot, too, but it's hard to connect with them although my brother-in-law has a wonderful relationship with them. (Once he invited a large family over for dinner and forgot to tell his wife; when the family showed up he sent and SOS to his Hutterite friends who delivered supper for everyone.)

    They are both wonderful groups of people and I hope your friends will find opportunities to contribute here. We could learn a lot from them.

  • LaurieLovesLearning
    LaurieLovesLearning Moderator Manitoba, Canada 🍁 zone 3, PrairiesPosts: 4,570 admin

    😆 That's funny!

  • gardneto76
    gardneto76 Posts: 370 ✭✭✭

    I live in a large city now, which seems to be doing fairly well economically. We do have several places that were shut down due to restrictions, and some that are unfortunately not going to be able to open back up. I sadly know it will be more of the smaller independent businesses that will suffer. I have also noticed other small business are doing much better than expected. I think in the long run this will cause a shift in what jobs people work in. On the positive side, even in a large city with small yards, many people are finding ways to grow more of their own food and using what they already had instead of wasting it.

    All of this also makes me miss back home even more, where I could learn about simple times from all those around me including Amish. Things certainly have and will continue to change.

  • RustBeltCowgirl
    RustBeltCowgirl North Coast OhioPosts: 1,140 ✭✭✭✭✭

    My town is doing fine. But then, boating is the main resource. No slowdown in that. Town quadruples in size on weekends during the summer. What you see is just a small fraction of the boats docked here.

  • Desiree
    Desiree Posts: 238 ✭✭✭

    I am in rural Northwest Central Ohio and really can't say that the economy took too great a hit here due to the pandemic. Our wet spring did more damage to the farmers than the pandemic. I know that there are areas that did see more economic strain but most of those are more urban areas.

  • Melissa Swartz
    Melissa Swartz Posts: 270 ✭✭✭

    @Desiree That makes sense--rural areas probably aren't as dependent on property tax revenues as bigger cities. Like you say, things like weather that impact agriculture will be the bigger factors.

An investment in knowledge pays the best interest.

-Benjamin Franklin