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This argument is it, but it says something different than you realize. The bigger problem is that as cities become less financially and culturally relevant/desirable their revenues decline at faster clip than their investment and spending. Its not infrastructure or anything in particular it's just a problem of congruency.

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Infrastructure is a fixed cost. On paper. But of course quality can be always traded off for cost. And that's what happens usually if revenue dries up.

Potholes, cracked asphalt, insufficient storm drainage, and so eventually a lot of damage to property (floods, cars, etc.).

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