Exploring the Financial Crisis of New York City in ‘Drop Dead City’

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A glimpse into the turmoil of New York City during the 1975 financial crisis, depicted in the documentary 'Drop Dead City'.

News Summary

The documentary ‘Drop Dead City’ examines the near-bankruptcy of New York City during the financial crisis of 1975. Directed by Peter Yost and Michael Rohatyn, the film highlights key events and figures involved in the crisis, including the famous ‘DROP DEAD’ headline from the New York Daily News. It showcases the resilience of New Yorkers in overcoming adversity, placing this critical moment in the broader context of the city’s ongoing economic challenges, and airs at Sag Harbor Cinema with discussions following the screening.

New York City is the focus of a new documentary titled “Drop Dead City,” which delves into the financial crisis that almost bankrupted the city in 1975. Directed by Peter Yost and Michael Rohatyn, the film has garnered acclaim, winning the Library of Congress Lavine/Ken Burns Prize. It underscores the near-collapse of one of America’s most iconic urban centers, a moment in history that has often been overlooked in discussions about urban American crises.

The film derives its title from a famous New York Daily News headline, “FORD TO CITY: DROP DEAD,” which reflects then-President Gerald Ford’s refusal to provide federal funds to assist New York City during its time of strife. On October 29, 1975, Ford declared he would veto any federal assistance aimed at preventing the city from declaring bankruptcy, a declaration that sent waves of anxiety through the populace and government alike.

The financial crisis unfolded following the election of Mayor Abe Beame and Governor Hugh Carey in January 1975. Both leaders faced mounting challenges as New York City battled staggering debts and a legacy of poor fiscal management. By mid-1975, the city found itself teetering on the edge of collapse, with essential services like firehouses and hospitals on the brink of closure and schools shuttering their doors. Garbage piled up on the streets, contributing to an atmosphere of despair and unrest that ultimately led to public protests.

The crisis reached a dramatic turning point when sanitation workers went on strike starting July 1, 1975, protesting the dire conditions and layoffs faced in the workforce. Simultaneously, laid-off police officers took to the Brooklyn Bridge to demonstrate their frustration with the city’s plummeting economics. These protests illustrated the growing discontent among citizens and city workers facing the brunt of financial decisions.

To create “Drop Dead City,” filmmakers conducted nearly 40 interviews with key figures involved in the crisis. Individuals like Harrison Goldin, the former New York City comptroller, provide insight into the financial and social implications of the crisis and its rescue efforts. The documentary pays particular attention to Felix Rohatyn, who played a pivotal role in the city’s financial recovery as chair of the Municipal Assistance Corporation, emphasizing the collaboration between unions, banks, and local government that helped avert a total economic disaster.

The film not only includes rich archival footage that captures the spirit of New York City during that tumultuous period but also juxtaposes it against contemporary discussions of the city’s ongoing political and economic challenges. It places the 1975 financial crisis within the broader socio-political context of the 1970s, as explained by historians like Kim Phillips-Fein and Kevin Baker, further demonstrating the lasting legacy of those events on New York’s current landscape.

“Drop Dead City” screens on June 6 at the Sag Harbor Cinema, followed by a Q&A session with the co-directors and economic advisor Jim Larocca. The documentary’s narrative intends to honor the individuals who contributed significantly to New York City’s recovery efforts. It starkly contrasts the pre-crisis city, viewed by many as a beacon of opportunity, with the chaos that ensued, characterized by escalating crime rates and deteriorating public services.

As the documentary unfolds, it offers a rich, retrospective lens on a defining chapter in New York City’s history, reminding viewers of the resilience of its people in the face of adversity, as well as the importance of unity and cooperation in overcoming catastrophic challenges.