This chapter discusses austerity, which causes significant urban damage, directly and indirectly. Austerians—especially those who make key decisions in banks, corporations, the federal administration, Congress, and the courts—sometimes have cities in mind as they make policy, but usually not. If they do make the connection, they may aim to punish cities. They surely do not regard fiscal and economic policy as part of “urban policy.” Indeed, austerity was imposed not to resolve the fiscal crisis, nor to aid financial institutions to recover their losses, nor to earmark funds for building social capital or offering services. Yet austerity policies do constitute “upstream” flows that can flood cities and swamp their options. Austerity thus needs to be incorporated into discussions and actions on urban policy.
