The numbers for New York's economy don't look good:
- Economic indicators have dropped 13 of the past 14 months
- Unemployment stands at 8 percent.
- Housing sales were down 21 percent last month.
And those are just the transitory, economic fluctuations that should be reasonably expected in a dynamic system.
New York, especially Western New York, suffers from longer-term economic trends that must be addressed whether we want to improve our standing in short-term fluctuations or build a strong economic foundation.
The New York State Association of Counties, which put out a press release prompting this post, jumps right to the conclusion that what is needed is more government, more stimulus, more taxpayer dollars.
Can the government really spend New York out of its current problems?
The government's power to spend money is mind boggling, but what really creates jobs and growth are private businesses making investments and taking risks.
Some of what is needed in New York is to clean up the mess in Albany, reduce the state regulatory burden and lower taxes.
But even with its faults, New York, especially WNY, has a lot going for it. Genesee, in particular, has access to inexpensive power, reliable rail and road transportation, a stable workforce, inexpensive housing, plenty of land and water, respected school systems and a great natural environment.
There's no reason jobs can't be created here.
But growth won't come from government programs. What WNY needs is a resurgence of entrepreneurship -- daring men and women who want to start businesses right here at home.
The biggest struggle WNY faces is how to convince business-minded people to take up the challenge of starting new companies. And again, I'm not sure a government program is the answer. People need to come to this conclusion on their own, but how to get the ball rolling ...
WNY was built by daring entrepreneurs, and only entrepreneurs will save it.
Full NYSAC press release after the jump:
“The Economy Watch continues to show that our state is suffering from severe economic decline. State and local leaders need to do everything we can to leverage funding from the federal stimulus plan to stem any further decline in our economy. We need to retain the jobs we have here in New York and attract new business and employment opportunities,” said NYSAC President Sarah Purdy, Yates County Administrator.
NYSAC’s Economy Watch is updated monthly and provides a range of data, including business cycle indicators, the consumer price index, job growth and layoff numbers, consumer and business confidence indicators, as well as local housing prices and sales activity.
Among the results presented in June’s Economy Watch include:
- The Index of Coincident Economic Indicators (ICEI), which has fallen for 13 of the past 14 months;
- Unemployment rates, which rose from 7.5% in April to 8.0% in May (before seasonal adjustment) despite increased seasonal hiring in many traditional tourist destination counties. A total of 29 counties exceed the State’s 8% unemployment rate;
- Housing sales declined by 21% for the month and have declined 40% since a year ago. Statewide sale prices have declined by 7.8% since a year ago and 11.8% since May of 2007;
- Consumer confidence increased in May by 5.5 points although New York consumer confidence indicators continued to be below the rest of the nation; and
- The Empire State Manufacturing Survey, which indicates that general business conditions for the state’s manufacturers continue to slip with indicators declining an additional 5 points in the last month.
The complete NYSAC Economy Watch, county level information where available, and a full description of each of the indicators and what they mean, can be obtained by visiting the NYSAC website.
The New York Stat Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate and advocate for member counties and the thousands of elected and appointed county officials who serve the public.
The government could do a lot
The government could do a lot of good by just removing the state income tax.
You mean like Texas?
You mean like Texas?
Unfortunately Downstate
Unfortunately Downstate Democrats are too focused on keeping afloat bloated government programs and doing the bidding of labor unions, than to focus on creating some real economic expansion in our state. The so-called "IDA Reform" bill is a perfect example of how out of touch these elected officials are. Government mandated increases on the cost of starting a business is the wrong message to send to entrepreneurs. Shouldn't we be doing everything we can to make our location more attractive to startup companies?
States that don't have an
States that don't have an income tax are able to make up the differences in other ways. They can't function on nothing.
That's another thing that bothers me is the misuse of "income" by every government. The pay I receive for work I perform isn't income at all. It's compensation in the form of something that is universally accepted as a trade medium, cash. The pay I receive isn't a gain which is the definition of income. I traded a specific number of hours of work for a specific amount of cash. There was no income. Before there was currency, people traded what they knew how to do. A pair of shoes for a few loafs of bread, for instance. Income is simply a return on an investment or a gain realized on a sale, just for 2 examples. A spend tax would be far more efficient and would make EVERYONE a tax payer.
Okay, back to the topic. I never hear it talked about but one of the largest expenses and problems for NY is Medicaid and fraud. There's also rampant welfare fraud but Medicaid tops it by far.
http://www.heartland.org/publications/budget%20tax/article/19084/NY_Leg…
The budget shortages will never be solved with Paterson's insulting and unfair tax increases. His tax schemes will only increase the willingness to find ways to avoid paying taxes and won't realize a net gain for the state. Going after the problem instead of treating the symptoms is the answer. This state is a welfare and Medicaid black hole. Cut these two programs drastically by going after the fraud within both agencies and we'll easily and fairly be able to meet the budget every year.
Prisons are also a huge drain on the tax payers. Sure, we need prisons but do we need to put every pothead into prison? Lets reserve prison space for people who are actually a threat to society. Prisoners get free dental care, health care and education while hard working people go without. There is something so wrong with that.
Maybe prisoners should be taught how to be doctors and dentists and treat each other so that we don't have to pay to transport them to civilian hospitals. You'd be amazed at what it costs tax payers to transport a single inmate to a hospital to have genital warts lased off.
There is so much fat to trim from the state budget but like most overweight people unwilling to give up the snacks, pastries and spandex, the state doesn't want to give up anything to make itself a more fit, efficient, well oiled machine.
NY is headed down the path of
NY is headed down the path of California, and at the rate Obama is printing money... our country.
Never in history has the government been able to SPEND us out of a recession! Some folks will be quick to point out FDR's "New Deal" after the Great Depression and how much of a 'help' that was to the economy. Unemployment peaked at 25% and he ran up massive deficit spending during his tenure. And by 1944 unemployment was down to 1%. Looks great on the surface and all that deficit spending gets the credit for doing something that it can't actually do...
Do you really think 15 years of deficit spending solved the country’s economic problems? Here’s the reality: Unemployment dropped to 1% towards the end of the FDR era because we were at war. All the men were off fighting WW2 and the women were in the factories = low unemployment and a VERY INNACURATE PICTURE OF DEFICIT SPENDING.
Maybe I'm mistaken, but I just don't see how excess government spending stimulates the economy. AND TO PAY FOR ALL THE SPENDING, TAXES OBVIOUSLY NEED TO GO UP. Higher taxes = fewer jobs. What business owner in his right mind is going to invest in hiring new employees when there is a substantial amount of uncertainty in how much his/her taxes will go up, what new government regulations there will be (cap & trade), etc. What's the incentive for hiring new employees and investing in growth and new ventures?
Case & point: when Carter left office the top marginal tax rate on the highest income earners was 70%. (So the first 8 1/2 months of the year you worked for the government! That must have been really rewarding and inspired hard work. But I digress.) Reagan cut taxes including the top rate to 45% - almost in half. (Still too high in my opinion, though.)
DESPITE TAXING EVERYONE LESS - GOVERNMENT REVENUE NEARLY DOUBLED!
Why? It's simple. When there is a greater reward for taking a risk more people are willing to do so. A more favorable business environment leads to more jobs, new businesses being started, lower unemployment, a stable economy, and positive expectations for the future.
Where am I wrong in my thinking?
Jason, well said. If the
Jason, well said. If the Obama way actually worked, I should be able to get 5 or 10 credit cards, pay off my house, truck, pole barn, eye surgery, take a couple hunting trips and then just file for bankruptcy! SWEET!
Doug, where can I get signed
Doug, where can I get signed up for the free ride?