‘Drop Dead City’ Review: A Gripping Look at How New York City Almost Went Bankrupt in 1975, Foreshadowing the Current Moment

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The documentary titled “Drop Dead City” belongs to a captivating yet analytical genre. Created by Peter Yost and Michael Rohatyn, this film delves into the financial crisis that besieged New York City in 1975, when it was discovered that the city was $6 billion in debt. This predicament meant there were no funds to pay essential workers such as firefighters, police officers, teachers, and sanitation workers. The city came perilously close to bankruptcy. (This is not an exaggeration.) If New York City had been anything other than the city it was – if it had been a corporation, a family, or even another city – it probably would have filed for bankruptcy. However, following a lengthy struggle over the best course of action, the city was deemed too significant to collapse (even though it had effectively done so, to a startling extent).

Back in ’75, I remember the electric buzz surrounding that notorious headline, “Ford to City: Drop Dead,” splashed across the New York Daily News on October 30th. Though President Gerald R. Ford didn’t utter those exact words, the phrase took root following a meeting between NYC reps and his administration. They sought a federal bailout, but instead received a chilly response. The reasons behind this were intricate, with Donald Rumsfeld and Dick Cheney being two key players. However, it was that headline that branded New York’s financial predicament into the annals of legend.

I refer to “Drop Dead City” as complex or technical because the film isn’t primarily focused on gritty urban culture; rather, it delves into the financial aspects. As the movie unfolds and follows the money trail, it presents a narrative that transcends New York City, offering insights with immediate relevance to our current times.

During the late ’70s, when New York City was on the brink of economic collapse, it was known for something else as well. This was the era of CBGB and Summer of Sam, a time when New York was infamous for its squalor and danger. Whole parts of the city had an air of neglect and decay. But amidst the crumbling concrete, there were pockets of life – the artists and thrill-seekers who found excitement in the grit and the uncertainty. The city was often portrayed as a wreck during this time, but it was also seen as a glamorous wreck, a raw, exposed nerve of a city that pulsed with desperation and creativity. However, for many who weren’t part of the middle-class bohemian scene, life in the city had become a living hell. It was a place where existence itself was a struggle to connect with the vital energy. But it was also a place of unparalleled allure – just listen to Lou Reed’s “Dirty Boulevard.” (The song captures this duality perfectly.)

Drop Dead City” presents fragments of a tale, but its core narrative revolves around an economic machine that had become so corroded it ceased functioning. The film’s archival footage, filled with politicians, bankers, and city officials, carries a pervasive sense of malaise under the harsh bureaucratic glow. This is a story of poor fashion choices, from ties to shirts to haircuts, sideburns, and lighting – a grimy New York as portrayed by Sidney Lumet in films like “Serpico” and “Dog Day Afternoon.” However, the reality was even more unattractive. Yet, this ugliness forms a crucial part of the drama – the spectacle of these government officials, working diligently with their number-crunching minds, attempting to rescue the city from ruin.

So why did New York nearly become a disaster area?

the records were scattered across a thousand different places and there wasn’t any kind of accounting being done.

Although economic turmoil doesn’t have to lead to the end of the world, the core issue that “Drop Dead City” highlights, albeit not fully addressing its consequences, is that New York City was a thriving symbol of liberal ideals. Unions held significant influence, and city workers enjoyed good wages, job security, and pensions. Moreover, the city provided a multitude of services to both the poor and middle class. New York served as a vibrant melting pot, a city of immigrants that embodied an East Coast variation of the American Dream. So liberal was New York that even a Republican mayor, like John V. Lindsay, in essence, leaned Democrat. The city didn’t advocate for less government; instead, it believed in providing whatever government was necessary to help its citizens prosper.

For quite some time, I’ve witnessed a pattern where the city has been overspending significantly more than it earns. This issue reached its peak when Abe Beame, a tenacious and blunt individual who stood at 5’2″, was elected mayor. Despite his small stature, he had a keen understanding of the city’s financial predicament due to his previous role as comptroller. He was determined to rectify this situation. Upon bringing on board Harrison J. Goldin, the new comptroller, and requesting an audit (as extensively discussed in the film), the grim reality was revealed: The city was drowning in debt, with its skyscrapers serving as a stark reminder of our financial burden.

Following this, there was a wave of blame-shifting and significant budget reductions. It was all Beame’s fault! No, it was the unions’ fault! Immediately after, Beame decided to cancel construction projects (such as Battery Park City and the 2nd Ave. subway line), which left many construction workers in a tough spot. (This would have made Archie Bunker into a modern-day Trump supporter.) As the city started letting go of thousands of its employees (including 2,000 sanitation workers, 2,300 firefighters, and 15,000 teachers), even police officers (numbering 5,000) who had never been laid off before in the city’s history, these workers responded with shock and anger. How could they do this? Piles of garbage accumulated. Crime rates skyrocketed.

But there was no money to pay anyone.

The Dramatic Countdown: New York City’s Precipice in 1975″

This documentary, titled “Drop Dead City”, delves into the nail-biting months of 1975, from spring to November, when a resolution was finally reached. The city was teetering on the edge of an abyss; New York seemed destined for ruin. Borrowing more money wasn’t the answer to this crisis. Mayor Beame established a task force, known as Big MAC, to restructure the city’s debt. Headed by investment banker Felix G. Rohatyn, this team aimed to refinance the city’s financial obligations. As depicted in the documentary, Rohatyn displayed remarkable political acumen. Despite one of the film’s directors being Michael Rohatyn, Rohatyn’s son, I still believe that this assessment is accurate. Rohatyn excelled at uniting the various factions and understanding what was essential: a financial resolution where everyone – labor unions, the state, federal government – had a stake in the outcome.

Drop Dead City” highlights an intriguing paradox that New York City faced in the mid-20th century: It aimed to assist its workers and citizens, despite struggling financially itself. This noble intention, however, raises a question about its longevity – is it sustainable? The documentary hints at this issue but chooses not to delve too deeply. President Gerald Ford didn’t say “drop dead,” but his initial approach was dismissive towards New York, until he changed his mind. Initially, the federal government turned a blind eye, followed by the teachers union led by Al Shankman, who initially refused to use the teachers’ pension fund for city bond payments – until he reconsidered. In essence, this situation can be likened to a high-stakes game of chicken.

Beneath the surface, however, a philosophical conflict simmered. This disagreement centered on the role of government. According to “Drop Dead City,” Gerald Ford lost the 1976 presidential election because he held an unpopular viewpoint regarding this question. The electoral votes from New York tipped the scale in Jimmy Carter’s favor, and the film argues that Ford’s rebuke of New York cost him the presidency.

Looking back now, Jimmy Carter’s presidency appears more and more as an exception rather than the norm. Four years later, Ronald Reagan was elected with a pledge to reduce government involvement, a shift that can be traced directly to the “chainsaw” approach seen in Elon Musk’s business methods (although Reagan romantics like David Brooks of the New York Times might argue they are two separate things; this is part of the ongoing denial among conservative supporters of Trump). The television series “Drop Dead City” portrays how New York found itself in a self-inflicted crisis, eventually making necessary adjustments. However, it wasn’t just poor financial management that led to New York’s predicament. For perhaps the first time, the city’s fiscal crisis exposed a flaw in the liberal ideal.

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2025-04-21 07:47