According to financial experts, New York City is closer to all-out financial bankruptcy for the first time since Mayor Abraham Beame ran the city more than 40 years ago. Businesses are leaving town in droves due to over-the-top taxation, and city spending is headed for the moon. It all would spell disaster for the city if something like a recession were to be thrown into the mix. People would be even more incentivized to leave town should that happen.
New York City is headed for financial ruin and could go bankrupt for the first time in 40 years, financial experts say.
Financial experts predict that there are already signs the city is headed for financial disaster, as many individuals and businesses are leaving the city for lower tax areas and city government spending is at an all-time high.
The last time the city came close to filing for bankruptcy was in 1975 when former President Gerald Ford refused to give the city a bailout package to settle its debt.
“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,” economist Milton Ezrati told the New York Post. “New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.”
The city’s budget deficit has reached an all-time high over the past year. New York City’s long-term liabilities— including pensions, bonded debt, and retirement benefits for city government employees— reached a record-high $257.3 billion, according to an October 2018 Citizens Budget Commission report.
Even though the city’s budget deficit has reached record highs, Mayor Bill de Blasio has shown no signs of curbing the city’s spending.
In fact, de Blasio is adding $3 billion in spending to the current $89.2 billion budget, and spending money at a rate that is three times the rate of inflation, according to the Post.
It also appears that de Blasio will not get help from fellow Democrat Gov. Andrew Cuomo, who is trying to address a $2.3 billion state budget deficit by using auditors to bill wealthy residents fleeing the state for lower-tax regions.
Cuomo’s preliminary budget proposed $600 million in cuts to money allocated to New York City.
Source: Breitbart News
It always makes me wonder how it is that liberals in the government feel it’s okay to spend money like it’s going out of style regardless if there was still money available. In real life, the everyday citizen, and the day-to-day business has to live inside the boundary of whatever funds are already in the account.
In a previous lifetime, I had some contact with the government spending attitude, and the thing that always rubbed me wrong was how the unit would go on a spending binge at the end of the fiscal year because they “had to spend all of the money allocated to preserve the next year’s funding appropriations.” I saw money blown to buy new stuff while getting rid of nearly-new items that were now being thrown out. It didn’t make sense then, and it makes less sense now.
The government approach to “good money management techniques” is diametrically opposed to the techniques under which the rest of us have to live. It would appear that New York City is about to have a day of reckoning for their excesses, and my bet is that as long as the Democrats are in charge, they’ll sink the ship and then try to blame it on the Republicans.