“If we could get every billionaire in the world to move here, that would be a godsend.” —former New York City mayor Michael Bloomberg

Somewhat short of the former mayor’s hopes, it seems that exactly 123 billionaires—the most in the country—now make New York City their home, according to the 2025 Forbes list. Perhaps they have been a political godsend for the campaign of mayoral candidate Zohran Mamdani, whose meteoric rise has been partly fueled by street-level policy proposals aimed at restoring affordability for the city’s non-billionaires.

It’s enough to make you think Zohran had a pre-publication copy of historian Daniel Wortel-London’s wonderfully heterodox and well-written new book on the economic history of the city of New York— The Menace of Prosperity: New York City and the Struggle for Economic Development, 1865-1981. (You can pre-order here — and a Google Play audiobook preview is here.)

How on earth, some readers will wonder, could prosperity ever be a menace? But that’s the story Wortel-London tells (with appearances by Lost Prophets Jane Jacobs, Paul Goodman, Lewis Mumford, and others) as he recounts over a century of struggles about which form of prosperity the city should aspire to — one that distributes ownership widely…or centralizes power; one that cultivates civic virtue…or rewards profiteering speculation; one that builds wealth locally…or hitches local prosperity to the task of attracting outside corporations and billionaires (and occasionally redistributing some of their wealth)?

It seems undeniable that capitalism tends to move from crisis to crisis, at least if you look at the three periods under scrutiny here. The first crisis stemmed from the Panic of 1873, when the city’s post-Civil War real estate boom from public spending ends in the Wall Street-railroad bubble bursting. The 1930s were the next crisis years as Fiorello LaGuardia and the City Planning Commission struggled with fiscal stabilization, possibly undermined, as the author interestingly explains, by federal assistance, which only accelerated the problems. Manhattan’s land values did not fully return to their pre-Depression values until 1977, by which time a shift in focus from land values to white collar income as the real source for taxes was well underway. The striking thesis offered here is that the fiscal crises were due to a “bankruptcy of economic thought and policy”, a poverty of ideas and “a dogma of powerlessness.”

Wortel-London turns around the usual shibboleths about the city’s welfare services being a driver of crisis in order to see them as a downstream product of the private sector’s irresponsibility and power: power to pay lower wages, charge high rents, and deny investment to needy communities. The culprit—one rarely mentioned in conversations about urban development—is unsustainable elite-driven development with its attendant social costs.

As we review this history with Daniel, we find the book to be a storehouse of urban policy alternatives. Mayor Bloomberg is only one of the more recent proponents of the comforting notion that “the rich take care of everybody else” with what Wortel-London calls their “poisoned largesse.” Many years ago, the urban policy mix included worker cooperatives, public housing, land value taxes, neighborhood finance, and community-owned enterprises. As a stroll around many parts of New York today will reveal, cities today mostly utilize tax incentives for corporations, real estate speculation, and financialized development.

Wortel-London’s narrative stops in 1981, with the arrival of Reaganomics, austerity and the first wave of the billionaires. It would be a further contribution to expanding what he calls our “fiscal imaginations”—badly shrunken as they are—if his next book could pick up the story at that point. Unless he decides to take a job in the new Mamdani administration, of course.

[Note: This episode was recorded before the New York City mayoral primary.]

Recommended

* The Menace of Prosperity: New York City and the Struggle for Economic Development, 1865-1981 — pre-order here

* “(We’re) Back in the USSR” from Daniel’s great substack, The Economy of Community

* Daniel on Zohran’s primary victory in New York Daily News

* Daniel on Zohran and Community Wealth-Building in the Democracy Collaborative’s blog

* Paul and Percival Goodman’s Communitas

Many thanks to the great band NOBLE DUST, who provides the music for Lost Prophets. Their latest album, A Picture for a Frame, is here.

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