Great Recession

Incentives and Austerity: How Did the Great Recession Affect Municipal Economic Development Policy?

October 29, 2020 // 2 Comments

By Sara Hinkley (University of California, Berkeley) and Rachel Weber (University of Illinois at Chicago) | After the Great Recession of 2007-2009, cities across the country were hit by a perfect storm of revenue declines, inadequate federal stimulus monies, and state efforts to displace budget cuts onto local governments. As a result, local governments found themselves making unprecedented cuts to public services and jobs. Libraries and schools were closed, social work caseloads rose exponentially, and even “sacred cows” like police and fire services were put on the chopping block as decision-makers pushed austerity responses. In most parts of the country, those cuts were never restored, even long after population and economic growth recovered. Read More