The End of NYC as an Economic Center?

NYC seems intent on losing its position as a major center for economic activity.

I mean, people are already leaving the city (and the state) in droves* and we continue to have rent control in spite of the fact it's a known economic blunder**. The City has violated property rights in banning smoking and trans-fats***.

But these aren't the biggies. I mean, I suspect that most New Yorkers are unaware that many people are leaving since, y'know, where would they go? (New Yorkers tend to be a little...New York-centric.) And many people (who ought to know better) continue to be in favor of rent control because it seems like such a nice little idea, in spite of the reality. And explaining that the bans are a violation of property rights is a difficult, bordering on impossible, concept to get across to any but the most liberty-minded people. So, while these are all bad for the city economically, they tend to fly under the radar.

But the tax issue I mentioned in the previous post is going to be a major issue in the future. After all, there are plenty of other cities out there that won't cause headaches for corporate execs and, if most of them are flying in anyway, it's a simple matter to change the destination to Newark, NJ (only 10 miles away and it has an airport) or some other convenient city. 'Regular' people might not see it as an issue, but then, 'regular' people don't organize and pay for huge corporate meetings.

As bad as this is, many 'regular' people will be unaware. But there is something that everyone will be aware of, if it passes. The ban on 'gadgets.'

Yes, that's right a New York State Senator is proposing to ban the use of iPods, cell phones and other gadgets while crossing NYC streets, suggesting a $100 fine for people who ignore the ban. This is not only illogical (check out LSAT Logic in Everyday Life's podcast episode about this) and extremely annoying, it is also anti-business.

See, if you know NYC, you know that a ban while crossing crosswalks really means a ban while walking because you can't get much of anywhere without crossing a street. So nobody will be able to conduct any business unless standing still or on some form of transportation (which is funny considering that traffic conditions are horrendous and public transit is permanently overcrowded). And New Yorkers are known for hurrying between point A and point B. Imagine how much faster they'll have to go if they can no longer multi-task.

Not that this, or any of the other bad ideas, would be enough to shake the city off it's pedestal as economic powerhouse. But, it all adds up to a city that is persistently doing things to make doing business harder. At some point, you have to wonder if they are doing it on purpose.


One final thought: NYC is the only city in the country that has an income tax. And that tax is on top of an above average state income tax. Oh, AND the city double taxes some things that even the federal government realized were unfair.




*Check out New York Is Losing People at Fastest Pace in America and I'm Outta Here
**Read How Rent Control Drives Out Affordable Housing or Three Fallacies of Rent Control or The Effects of Rent Deregulation in Massachusetts...really it's an embarrassment of riches, I could have picked many other articles
***You could read Growing Up Means Resisting the Statist Impulse and New York's Anti-Resolution Resolution: Ban the Trans Fat ... but just because I enjoy them.