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NEW Which Cities Can Take a Punch? READ HERE

The New York Times has published a very good piece on urban adaptation to natural disasters.   Note its implicit optimism that New York City is making investments to make it more resilient against the next shock. In this sense, the marginal damage of a given shock declines over time due to small ball investments made by households, firms and local governments.   While the NY Times wants more Federal Aid to pay for this defense, this makes no sense.  Urban defense is a local public good while national defense is a national public good.   Make individual neighborhoods and cities pay for their own defense and the investors will make better choices.  Other people's money is too easy to spend and leads to waste.   The point the article doesn't make is the counter-factual. If NYC doesn't make these investments and if it develops a reputation for being risky and unsafe then firms and the skilled will leave and NYC would become Detroit.  This competition between cities for the mobile tax base incentivizes them to step up to address new risks such as climate change.  This was a key theme in my Climatopolis that folks have been slow to appreciate.   Competition and innovation will protect your urban family from the blows that climate change is now unleashing.

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