In April 2023, Show-Me Institute’s Susan Pendergrass conducted an interview with Daniel DiSalvo about big city pensions and the doom loop they face. A year later, The Wall Street Journal published a story specifically about the downtown real estate nightmare doom loop of St. Louis. And of course, as referenced in the photo above, we at the Institute have been chronicling the ever-doomed loop trolley on Delmar Boulevard.
Now there is one more “doom loop” article about the challenges facing St. Louis. Governing magazine wrote recently about how declining downtown activity leads to economic decline. Its observations are similar to those in the Journal. Cities like St. Louis, where vacant office spaces drive down property values, are experiencing a vicious cycle where diminished tax revenues lead to reduced public services, further pushing businesses and residents away. According to Jason Bram, an economist interviewed in the article, “It’s a very slow-moving, long-term trend that’s only gotten worse.”
This pattern of urban decline is related to the broader challenges facing cities that fail to address fundamental issues like public safety, infrastructure, and housing. St. Louis, already burdened by economic stagnation, could face further setbacks unless city leaders refocus on foundational public services.
Flashy developments like downtown stadia won’t cut it; St. Louis needs to avoid repeating those expensive mistakes. Instead, cities should prioritize core services. For St. Louis, that means investing in improving public safety, maintaining infrastructure, and focusing on policies that encourage growth.
Without addressing these fundamental issues, St. Louis risks being caught in a permanent cycle of decline. Other cities should also heed this warning and ensure that they focus on sustaining a healthy urban core before chasing grandiose development projects.
