The start of the Great Recession in 2008 ushered in an era of global fiscal and economic crises. As the global economy suffered, its smaller subunits, notably cities, also suffered. In tough economic times, city dwellers – virtually the sole financiers of cities – leave expensive city centers for more affordable suburbs, taking their property taxes with them. When combined with increased taxes to fuel the city's budget, such a scenario results in a seemingly endless cycle: high taxes cause residents to leave the city, thereby reducing the tax base. In response to this, cities must raise taxes to meet their needs, which will drive more residents out of the city. Once again, the tax base shrinks and the cycle continues (Harvard Law Review, 1997). As unique as these circumstances may seem, many cities experienced a very similar phenomenon in the late 20th century. Increase in municipal debt. Beginning in the 1970s, cities faced unforeseen circumstances that directly led to deficits similar to those thirty years later during the Great Recession. . Metropolitan areas were becoming more expensive and highways were subsidized by the federal government; as a result, White Americans were leaving the city for the suburbs (Mitchell & Beckett, 2008). This period of suburbanization brought industry out of the city and into the suburbs, filled with vast tracts of land perfect for industry. Although businesses left for purely economic reasons, white, middle-class Americans left in search of wealthier, more homogeneous neighborhoods that would support their lifestyle. What remained was the population, abandoned because of this phenomenon of “white flight,” who needed the manufacturing jobs that once inhabited the city. Especially low...... middle of paper ......risis. One of these strategies is the financial control board. Praised by city officials and government committees, control boards appear to provide cities with a level of stability they would not otherwise have. Some studies show that financial control boards allow cities to make difficult policy decisions to achieve a balanced budget (Harvard Law Review, 1997). However, the evidence is not completely conclusive: while some data reflects significant efficiency, others argue that the gains made by cities are not entirely accurate – that budget cuts in various departments do not necessarily lead to increased costs. growth rate within these departments (Glassberg, 1981). ). Nevertheless, cities continue to turn to boards of control in the hope that they can achieve in their city what has been achieved in others, such as New York or Cleveland (US House, 1997).