Are Cities Being Sold off to the "Shadow Elite"?

Facing enormous budget shortfalls created in part by the recession, mayors and governors are increasingly turning to the sale of public assets - often to the very Wall Street businesses that helped fuel the crash, writes Donald Cohen.

2 minute read

February 25, 2010, 10:00 AM PST

By Michael Dudley


Donald Cohen of the Center on Policy Initiatives warns about a disturbing trend: the sale or lease of public assets to private enterprise. Informed by the findings in Janine Wedel's new book The Shadow Elite, Cohen shows how such deals undermine the ability of local government to control their own areas of decision-making, as well as eliminate the possibility of public consultation.

"Mayors and governors staring down massive budget gaps are putting bridges, buildings, parking lots, and more up for sale. Who's buying? Wall Street, which, in turn, wants to sell off your public assets to investors with the promise of sure-fire returns. [For example], Chicago's Mayor Daley rushed a 75-year lease of the City's 36,000 parking meters through City Council for $1.15 billion in much-needed budget cash.

[D]eals like the one in Chicago go well beyond simple government contracting. Private interests are increasingly eating up not just public assets or functions, but also the public power that comes with those assets, power to make policy in a way that good government demands: with transparency, accountability and with the interest of the public front and center. With each lease signed, pieces of official government disappear, as does your right as a taxpaying citizen to control what should be part of the public sphere, now and well into the future.

The privatization craze is happening all over the country, and the risk of vanishing public power spreads with it."

Thursday, February 25, 2010 in Huffington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City