Uncategorized

Re: With Financial Reform, What Becomes Of New York?

By Michael Scherer | @michaelscherer | April 22, 2010 | +

This morning, the New York Post put an editorial on its front page, with giant wood:

Dear Mr. President

DON’T KILL THE GOLDEN GOOSE

City economy imperiled in the name of ‘reform’

Good stuff. The editorial continues: “One in 12 working New Yorkers are connected to the financial sector, which generates fully 40 percent of the city’s business and personal-tax revenue. Every $1 billion in Wall Street profits means $70 million in direct taxes to the city’s cash-starved coffers.”

If I were a cynical man, I would compare this to a mob boss pleading before a judge that he should not go to jail on racketeering charges because he has so many nieces and nephews to support. But I think Barbara Kiviat has a better metaphor over at the Curious Capitalist.

Maybe New York City shouldn’t be so dependent on such an alcoholic boyfriend of an industry. When times are good, they’re really good. But when times are bad, we all get smacked around and the economy goes kaboom. As the city’s Independent Budget Office recently pointed out, financial re-regulation may crimp the profitability of financial firms, but it may also leave a less volatile industry at the city’s core.

Related Topics: financial reform, New York, Uncategorized

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  • nflfoghorn

    How galling.

  • Ivy_B

    Is that the Rupert Murdoch owned New York Post?

  • http://www.simonvinkenoog.nl/beeld/Yogi%20-%20Annelies%20Rigter.jpg yogi

    Only 70 million in every one billion? They are seriously saying that? They do realize that’s only 0.07% tax rate.

  • deconstructiva

    “Giant wood”?
    .
    Paging sacredh and kbang….

  • profbaltasar

    One billion is a different number in different countries. In USA it is 1000 millions, which means that the rate is 7 %.

  • http://www.simonvinkenoog.nl/beeld/Yogi%20-%20Annelies%20Rigter.jpg yogi

    Oops, you’re right, forgot to adjust for the per centage.

  • jbaustian

    The damage Congress does will not just affect New York City and New York state — they will do serious harm to the entire country.
    .
    It was almost amusing to hear Obama talk about how he was making the markets safer for investors… as if he was an expert, as if he knew even a little bit on the subject.
    .
    It was not so amusing to hear him promise that there would be no more bailouts. If investors think that risky investments are not really risky, because Obama promised them him legislation would take the risk out of the market, then folks will be more inclined to take on more risk than they think they’re getting into. So in fact the government could be setting up gullible investors for losses they would not otherwise face. And someone, speaking for the losers, will point out that it’s the government’s fault and the government should make good those losses. Ergo, there will be bailouts.

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