But one of the people who did understand how to use this new power was Donald Trump. Trump realized that there was now no future in building housing for ordinary people, because all the government grants had gone. But he saw there were other ways to get vast amounts of money out of the state. Trump started to buy up derelict buildings in New York and he announced that he was going to transform them into luxury hotels and apartments. But in return, he negotiated the biggest tax break in New York’s history, worth 160 million. The city had to agree because they were desperate, and the banks, seeing a new opportunity, also started to lend him money. And Donald Trump began to transform New York into a city for the rich, while he paid practically nothing.
Two-part Village Voice piece on that era at:
- How a Young Donald Trump Forced His Way From Avenue Z to Manhattan
- Behind the Seventies-Era Deals That Made Donald Trump