You have read about China's "Ghost Cities," but America's own ghost towers are a frightening reminder of what's going on in America's major cities. New York's Hudson Yards development was supposed to be a luxury buyer magnet. Instead, it sits half-empty and sells units at deep discounts. Katherine Clarke explains the situation at Hudson Yards in The Wall Street Journal: When the Related Companies set out to build Hudson Yards, a roughly 28-acre mega-project on Manhattan’s far west side, its goal was lofty: The developer wanted to turn a windswept railyard into the next hot destination for … [Read more...]
It Was a Bad Deal
This is a cautionary tale of what happens when governments attempt to insert themselves in fast-moving markets. Look how the taxpayer money was spent without considering that market forces are more powerful than subsidies. Julie Bykowicz and Ted Mann report in The Wall Street Journal: BUFFALO, N.Y.—New York spent nearly $1 billion over the past decade on Elon Musk’s ambitious plan for what was supposed to be the largest solar-panel factory in the Western Hemisphere, one of the largest-ever public cash outlays of its kind. “You almost have to pinch yourself, right?” New York’s … [Read more...]
A Poor Imitation
You may not have guessed it, but Washington State has imitated California's anti-CO2 rules so well that it has become America's new home of the highest fuel prices while making its residents poorer. Imitation is the purest form of flattery, but in the case of California, it's also the fastest way to diminish citizens' standard of living. The Wall Street Journal's editorial board reports on Washington's dubious honor, writing: Congratulations, of the dubious sort, to Washington state. The folks in Olympia have dethroned California to claim the distinction of the country’s highest gasoline … [Read more...]
Now Democrats Are Coming for Your Pizza
Apparently, like your gas stove, wood and coal-fired pizzerias are a climate emergency. New York City wants its famous pizzerias, including Lombardi's, which is known as America's first pizzeria, to cut particulate emissions by 75%. New Yorkers, who enjoy their pizza perfectly cooked are not happy. The Daily Mail reports: Pizzerias which could be impacted include Lombardi's in Little Italy, John's of Bleecker Street in Greenwich Village, and Grimaldi's near the Brooklyn Bridge. One anonymous restaurateur told The Post: 'You take away the char, the thing that makes the pizza taste great, … [Read more...]
Covid Low Tide Leaves Mismanaged Blue States Exposed
Warren Buffett famously said that "It’s only when the tide goes out that you learn who has been swimming naked." Now that the absolute tidal wave of Covid stimulus money is finally receding, states that have been relying on that money to avoid painful budget realities will be exposed. The editors of The Wall Street Journal explain what future awaits many of the high tax, big spending states as the Covid money runs out: New York State Comptroller Thomas DiNapoli said Friday that state tax collections in the past two months are running 32.2% lower than a year ago, with personal income tax … [Read more...]
San Francisco’s Progressive Obsessions
In The Wall Street Journal, Allysia Finley explains that the root cause of San Francisco's disorder is the city's "progressive obsessions." The root of "progressivism" is, of course, redistributing wealth from the rich to the poor. She warns that the city won't recover until it gives up on its "neurotic obsession with eliminating wealth." She writes: The first step to recovery is admitting you have a problem. Yet San Francisco’s leaders refuse to acknowledge how their own policies have caused the spiral of public disorder that’s driving away businesses and residents in droves. Add to this … [Read more...]
What Is the Future for San Francisco?
In The Future of the American City Is This..., you read about Your Survival Guy's recent trip to Rome and Paris and the optimistic view of what America's cities could become if they avoid the pitfall of becoming "vacant canyons of office buildings." San Francisco has not avoided the pitfalls. Residents are leaving fast, especially those high-earning tech workers who populated the city's office buildings and spent their money freely in its stores and restaurants. Giulia Carbonaro describes San Francisco's current plight in Newsweek, writing: Struggling with rampant homelessness, a drug … [Read more...]
HOUSING CRISIS: California Could Face Mortgage Default Tsunami
At CNN Yuliya Panfil and Dona Stewart describe a mortgage crisis that could soon hit California's middle-class homeowners, and they make a long case that the fault lies with climate change and greedy insurance companies who want to actually get paid for providing a service. But as Your Survival Guy explained recently, California's laws are really at fault, driving insurance companies into unprofitability and a predictable exit from the state. Panfil and Stewart write: Last month, insurance giant State Farm (California’s largest insurer) announced it would not issue any new homeowner … [Read more...]
Is Your Blue City Stuck in a “Doom Loop?”
You know that big blue city politicians have demanded ever higher taxation while providing fewer services, like policing, to their constituents. Now streets of cities like San Francisco are filled with the homeless and drug addicted, and stores and offices are under siege by criminals. Josh Koehn and Kevin Truong of The San Francisco Standard have dubbed the city's current status a "doom loop." They write: The loss of businesses and in-office workers since the pandemic has kneecapped the flow of tax revenue to City Hall, and foot traffic to small businesses in the area has evaporated. San … [Read more...]
Welcome to Hotel California, Where You Can Never Leave
Leave it to California to sap the wealth from the successful. You can add New York, Illinois, Maryland, Hawaii, Minnesota, Connecticut, and Washington to the list too. You know from my Super States ranking where your money will be treated with more respect than it is by these money grabbers. I’ve never been a fan of letting taxes wag the dog but what we’re seeing is more than taxes, it’s about taking away your freedom. Now politicians in California want to emulate the famous Eagles tune, "Hotel California," and not allow even those who leave the state to escape its draconian … [Read more...]