‘Drop Dead City': When New York Was on the Financial Brink

New York Times

25-04-2025

There's a bit of a puzzle at the center of 'Drop Dead City' (in theaters), the new documentary about that time New York City barely escaped bankruptcy. Michael Rohatyn, who directed the film with Peter Yost, is the son of Felix Rohatyn, the banker and diplomat who led the Municipal Assistance Corporation. That's the entity, established at the height of the crisis in 1975, that negotiated the solution with the city, the banks and the unions that ultimately pulled New York back from the brink of financial ruin. But while the elder Rohatyn is praised by many participants in the film, his connection to one of its directors isn't mentioned at all.
I admit I raised an eyebrow when I realized the link, and it's true that at times 'Drop Dead City' seems like a tribute to Felix Rohatyn's acumen and ability. That might color the film's credibility a bit. But on the whole, the movie probably benefits more from the younger Rohatyn's involvement, not least because an incredible array of people who worked for the city and state at the time appear as participants, whether they are former aides and comptrollers or mayors, union leaders and members of Congress.
That chorus of voices tells the story, helped by a lot of archival video that vividly illustrates how heated the protests and garbage-laden the sidewalks became while the municipal government tried to figure out the resolution. It's an evenhanded and surprisingly entertaining account of how things got so bad, who was to blame, the way it was fixed (to some degree) and what New York inevitably lost in the process.
The story, as a lot of New Yorkers know, is complicated, and 'Drop Dead City' sets out to tell it as simply as possible, from the city's progressive roots to its years of chaotic bookkeeping and sometimes profligate spending to its contentious relationship with both the state government in Albany and the federal government. The participants in the film don't all agree with one another, which makes for a richer tale. No story about money is straightforward, but this version is about as fun and vivid as it could be without skimping on the details.
Viewed through a wider lens, it's also a parable, and it should be watched through that lens. When you think about it, it's a bit of a miracle that the American system — involving many interlocking governments and interests, led by colorful personalities that often clash — ever works at all. But while the sheer size of the nation sometimes tempts us to think of faraway people as 'them,' with problems that are only 'theirs,' our fates are tied together. As people note repeatedly in 'Drop Dead City,' it was in everyone's interest to keep New York afloat, because what happened in the city had broad repercussions for the whole country. The crisis may have unfolded 50 years ago, but our interdependence is as important to remember now as it was then.