New York City is the economic capital of the USA. Washington may control the laws, but the Big Apple controls the economy. At least that's how it used to be. Now, as the years pass, the dominance of New York City is disappearing. Without a doubt, New York is still the most important city in the American economy if for no other reason than Wall Street. What has changed, though, is that many other places are catching up.
The question this relative change brings up is whether New York has slowed down or if other places have sped up. The answer is that both views are correct. Some places (like Houston and Dallas) have accelerated their growth to the point that their economies are getting increasingly important to the nation. Meanwhile, New York has been slowing. Fifty years ago, New York actually got to the point where it was moving backwards. The city became a victim of suburban flight and other out migrations that led all manner of companies to depart from Manhattan. Things got worse as crime soared. All the while, the New York government was spending cash that it just did not have. Taxes were raised to levels at both the state and city levels that were unsustainable. The result was the city's financial crisis during the 1970s. By 15 years later, it was unclear if the city could survive as an economic center. Even big chunks of the Wall Street financial complex started moving out. Then in the 1990s, things changed for the better. The city began a 20 year period in which it got control of crime and mostly eradicated it. New policies brought in by mayors Giuliani and Bloomberg re-established the city as a safe place. New industries especially those tied to the internet located in Manhattan. Both the economy and the population started growing again in a healthy manner.
The city and state governments seem intent on throwing that progress all away, however. The cesspool which is New York State government is back to its old tricks. Corruption, high costs, and wasteful spending are joined with economic moves that make no sense. New York, for example, has banned drilling using fracking even though the EPA and all of the other studies show that fracking has no negative environmental consequences. Liberal ideology regarding fossil fuels has won over jobs for tens of thousands upstate.
As bad as the state has been, the city has been much worse under its new mayor. In just a short time in office, he has managed to take steps to bring the crime rate way up while depressing the local economy. That is not an easy thing to do.
The question this relative change brings up is whether New York has slowed down or if other places have sped up. The answer is that both views are correct. Some places (like Houston and Dallas) have accelerated their growth to the point that their economies are getting increasingly important to the nation. Meanwhile, New York has been slowing. Fifty years ago, New York actually got to the point where it was moving backwards. The city became a victim of suburban flight and other out migrations that led all manner of companies to depart from Manhattan. Things got worse as crime soared. All the while, the New York government was spending cash that it just did not have. Taxes were raised to levels at both the state and city levels that were unsustainable. The result was the city's financial crisis during the 1970s. By 15 years later, it was unclear if the city could survive as an economic center. Even big chunks of the Wall Street financial complex started moving out. Then in the 1990s, things changed for the better. The city began a 20 year period in which it got control of crime and mostly eradicated it. New policies brought in by mayors Giuliani and Bloomberg re-established the city as a safe place. New industries especially those tied to the internet located in Manhattan. Both the economy and the population started growing again in a healthy manner.
The city and state governments seem intent on throwing that progress all away, however. The cesspool which is New York State government is back to its old tricks. Corruption, high costs, and wasteful spending are joined with economic moves that make no sense. New York, for example, has banned drilling using fracking even though the EPA and all of the other studies show that fracking has no negative environmental consequences. Liberal ideology regarding fossil fuels has won over jobs for tens of thousands upstate.
As bad as the state has been, the city has been much worse under its new mayor. In just a short time in office, he has managed to take steps to bring the crime rate way up while depressing the local economy. That is not an easy thing to do.
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