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By Robert W Bailey
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Additional resources for The Crisis Regime: The M. A. C., the E. F. C. B., and the Political Impact of the New York City Financial Crisis
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Political science cannot even predict its own agenda. While there is now a rush toward the study of policy making in declining economies, we must also admit that the conclusions of many previous studies of local governance are now in doubt because factors of finance and debt were not taken into account. In this sense, the New York City financial crisis is a source of embarrassment for the discipline. Red faces aside, the financial problems of New York City, Cleveland, Yonkers, Chicago, and those of some public benefit corporations do present an opportunity for the study of politics.
The basic problem, according to the representative of Merrill Lynch, was the size and frequency of city borrowings. 10 It was against this background that the Financial Community Liaison Group (FCLG) was formed. 4 percent interestBeame requested a meeting with the major representatives of New York's financial community. On January 9, Beame met with a group including David Rockefeller of Chase Manhattan, Ellmore Paterson of Morgan, and representatives from Chemical, Citibank, Bankers Trust, and Manufacturers Hanover.
From this perspective the contradiction grows out of the dual functions liberal democratic governments must serve. First, they protect the rights of property and thus the private accumulation of capital. Second, through participation they legitimate a social system thatgiven the first pointwill inevitably lead to social and economic inequality. For these new Marxists, local government's inability to overcome this contradiction explains the failure of reformist social policy, particularly in the cities.