Expert consensus is stating that New York City is in a free-fall towards an all-out financial bankruptcy for the first time in more than 40 years.
Long-term debt is now more than $81,100 per household, the wealthy and businesses are fleeing, and Mayor Bill de Blasio is ramping up to spend as much as $3 billion more in the new budget.
Financial analysts say NYC is perilously near total fiscal disaster.
“The city is running a deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform,” said Milton Ezrati, chief economist of Vested.
“New York City could go bankrupt, absolutely,” said Peter C. Earle, an economist at the American Institute for Economic Research.
“In that case, the city would get temporary protection from its creditors, but it would be very difficult for the city to take on new debt.”
De Blasio went full on socialist and has been arguing that wealth has been in the wrong hands. He set it his main goal and promise to redistribute it. He pledged to give it back to the working people. Of course, this is the same promise every socialist, communist, dictator and despot has made since the beginning of time.
“Here’s the truth, brothers, and sisters, there’s plenty of money in the world. Plenty of money in this city,” de Blasio stated. “It’s just in the wrong hands!”
But even liberal governor Cuomo recognizes that they taxed the wealthy a ‘bit’ too much.
Recently, the decline in state revenues got so serious that even Governor Cuomo finally gets what’s going on:
“‘Tax the rich! Tax the rich! Tax the rich!’ We did. Now, God forbid, the rich leave,” he said.
That statement came as projected NY income tax revenues for the year just dropped $2.3 billion. That was after falling $500 million in December.
NYC spending is up over 32 percent since de Blasio took office which is triple the rate of inflation. The city’s long-term pension obligations have escalated as well, as its workforce has soared by more than 33,000 in the last five years.
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Both NYC, as well as New York state, are ranked No. 1 nationwide in state and local tax burden. Property taxes, almost half of the city’s revenue, are rising faster than any other revenue source. They are squeezing businesses and forcing homeowners, already hit by federal property tax deduction changes, to relocate to lower-tax states.
The top 1 percent of New York City earners pay some 50 percent of Big Apple income tax revenue.
And all this at a time when the U.S. has seen its best economic performance since the Reagan years.
The mayor’s socialism is failing, and failing most, those de Blasio is claiming to help, the poor.
It always does.
You do not redistribute wealth, you raise the standard of living. The standard of living comes from wealth at the top. You raise everyone. You make no lives better by destroying the wealth of some.
Will New Yorkers and others enamored of socialism ever learn from this? Maybe that’s the question to start seeking answers about. How bad does it have to get and why must it always get bad for anyone to wake up?