Thursday, September 5, 2013

New York, meet Detroit...

Republican Mayors have run New York for the past 20 years. (Ok, Bloomberg is pretty liberal, but he is still less Lefty than the Democrats in that state).

Things have been pretty good in New York during that time.  Crime is down. Incomes are up.  The city is one of the shining examples of western civilization.

It looks like that run is about to come to an end.  The odds on favorite to win the mayoral election this fall is Bill de Blasio, a hard core socialist and wealth redistributor.  As noted in this article in TPM:

de Blasio for Commisar!
"But de Blasio’s campaign is framed around the problem of inequality and he’s been pretty specific about what he’d do. The centerpiece is a sizable hike in the taxes of upper income New Yorkers to pay for universal pre-k and after school programs throughout the city. The rest center around policies and laws to prop up the low-end wage structure."

The TPM article laments the fact that despite many candidates talking about income redistribution, no one has really done anything about it.  It goes on to say

"How much you can really move the needle on these questions in a single city with two other states nearby is a very open question. But New York, given its size and the relative immobility of some of its major industries, is perhaps the only city where you could take a stab at it. So it will be interesting to see how this all plays out. "
In other words, he is planning to soak the rich, and he is hoping that they will not move away and foil that plan. 

Good luck with that.  

Detroit found out the hard way that when you soak the rich and subsidize non working class, you destroy the entire city.

The assertion that New York's industries are immobile and therefore can be heavily taxed with little risk that they will move on to greener pastures is absurd.

Detroit had the quintessential immovable industry -- large smoke stack factories with a huge embedded supply chain of smaller factories.    And yet virtually the entire industry has moved away from Detroit.

New York does not make cars.  It sell financial instruments.   This is a completely mobile industry  -- all you need is an Internet connection.

If you start taxing New York millionaires, don't be to surprised when they become Hilton Head millionaires.

If de Blasio and his fellow travelers get their wish, they will destroy New York City.

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