Who Governs a “Freedom City”? with Rick McGahey

“Freedom Cities” are being sold as a way to unlock innovation: fewer rules, faster building, and a clean-slate approach to growth. But what is a Freedom City—really—and who would it answer to?In this episode, Chalin is joined by Rick McGahey, economist at The New School and former Clinton-era Assistant Secretary of Labor, to break down the Freedom Cities idea and the paradox at the center of it: cities are governed by states, so why is this being pushed at the federal level? Rick argues the answer is the point—Freedom City proponents want zones that can dodge not only state constraints, but also wide swaths of federal rules, from taxation to labor protections to environmental regulation. We also zoom out to the bigger story Rick explores in his work on inequality: metro areas generate the overwhelming share of U.S. GDP, yet both federal and state policy often treat cities with suspicion or hostility—making it harder for them to deliver the basics (schools, housing, transit, safety) that keep a city healthy. If “Freedom Cities” are built near thriving metros to siphon their economic gravity—while trying to opt out of the rules that protect the people living around them—what exactly are we building: a housing solution, an innovation lab… or a modern company town?