Part 8/11:
San Francisco’s situation resembles a “doom loop,” a self-reinforcing cycle of declining property values, reduced tax revenues, budget cuts, deteriorating services, and further devaluation. Mayor Daniel Lurie and city officials face enormous challenges in stemming this tide. Their attempts at measures such as increasing arrests for homelessness or planning new developments are, at best, slow and insufficient.
The city may also have to revisit fiscal policies and taxation systems to prevent a total collapse of municipal services, including transportation, which could see service reductions akin to a near-closure of BART and other transit systems—further discouraging economic activity.