Was coal a curse to Pittsburgh? Did cars destroy Detroit? Does the dominance of a single industry destroy the innovation and entrepreneurship of a region?
If it does, then the economic crisis may have actually helped New York by enabling the city to avoid an over-concentration in finance.
For decades, economists have debated the “ Dutch Disease” and other ailments associated with too much success. The discovery of natural gas in the North Sea supposedly helped to de-industrialize the Netherlands by raising exchange rates and making Dutch manufacturing less competitive internationally. Almost 15 years ago, Jeffrey Sachs found a negative correlation between resource abundance and economic growth in the developing world, perhaps because those resources fueled conflict and enabled dictators.
Can some types of prosperity imperil cities as well as countries?
What Makes Cities Great - Economix Blog - NYTimes.com