The Strong Towns Podcast Why American Cities Are Going Broke (And How To Fix It)
Nov 27, 2025
The podcast dives deep into the financial struggles of American cities, revealing how growth can actually lead to bankruptcy. Chuck Marohn discusses the importance of incremental, bottom-up development compared to sprawling suburban growth. He highlights the impact of post-war cultural shifts and shows how older neighborhoods outperform newer ones in tax value. With practical examples like Muskegon's tactical placemaking, the episode advocates for rethinking infrastructure and reducing regulatory barriers to foster vibrant, livable communities.
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Incremental Development Creates Lasting Wealth
- Cities historically grow incrementally from small, cheap buildings into denser, wealth-generating places over decades.
- Skipping those middle stages produces fragile, low-return development that later bankrupts municipal infrastructure.
Postwar Growth Multiplied Liabilities
- Post‑WWII policies pushed expansionary, low‑density growth that multiplied infrastructure liabilities without matching population gains.
- That left many places with far more miles of pipe and road per resident than before, worsening fiscal stress.
Transactions ≠ Wealth
- Growth in transactions is easy but building real, lasting wealth is much harder and rare.
- Lafayette's example shows liabilities grew 10–20x while median household income rose only modestly, producing negative net worth for many residents.
