New York City is in crisis. Mayor Bill deBlasio claims that without a bailout from the federal government, New York City will be in trouble and that President Donald Trump needs to come save New York City. Projected revenue for NYC could drop as much as $10 billion, its budget staff warns.
Coronavirus pandemic is hurting New York City fiscal health, no doubt about it. Expenses are up from emergency services. Revenue is down due to less economic activity. Restaurants being closed deprive the city of a slew taxes, from sales tax on the consumer side to business income tax and employee income tax on the seller side.
Yet this crisis is easily solvable and without a bailout from President Trump and the federal government. Bill deBlasio, like many Democrats, like to spend. The government expenditure when Bill deBlasio took over from Mayor Bloomberg in 2014 was at $73 billion. The 2019 budget had expenditures at $92 billion, an increase of almost $20 billion dollars.
This involved expanding government employment significantly. It involved $800 million for his wife’s mental health initiative, who can’t tell you where the money went. It involved lucrative pay raises for Blasio’s union backers, the traditional support base of Democrats.
Therefore the solution to the budget crisis, is not to ask federal government and other taxpayers for more money. The solution is for Bill deBlasio to start imitating his Republican colleagues and start cutting expenditures. The supposed shortfall in revenue of up to $10 billion that NYC is warning about, could easily be solved by just going halfway back to the 2014 budget. Halfway. Roll back some of the lucrative public sector wages. Reduce the insane public sector staffing in New York City. NYC employs 330,000 people… that’s a ridiculously high number of public sector employees for the city alone.
That’s an easy solution but Bill deBlasio and Andrew Cuomo would rather try to get the money from taxpayers instead. Bill deBlasio spent like a maniac during the boom times, and now wants the federal government to sustain his loose spending ways. The analogy to all of this is having a cousin who made a ton of money in the stock market one year, started spending lavishly, then asking you for a bailout to maintain his lifestyle when he didn’t have the same gains the following year.
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