The problem is, cities like NY, Chicago and Seattle are bailed out constantly, and on a daily basis.
I know NY City well, and it is a welfare city. It produces nothing, and exists on skimmings from Wall Street trading, State aid and massive Federal Transfers in every area - education, transport, medical, welfare, etc...
This has continued for decades, and that entitlement has given rise to a highly aggressive, parasitical, marxist/socialist political class.
And their goal is to gain power over the real producers elsewhere in America
The point being - it's not a problem "when they have a debt collapse in the future." Its an on-going operation / problem NOW
I have little interaction with anything New York. But when we need some heavy industry they still have it there. I know people say “just move” but it is not so easy to pack up a 150 year old foundry or ship yard. Sucks that businesses are stuck in places like that. Heck. It cost me tens of thousands just TO CLOSE a business in a blue city after only 15 years.