Monday, November 10, 2008
Can New York Reinvent Itself?
Days after 9/11 the country and the world thought that New York City would be devastated. Most projected that it would be years before New York City got back on its feet. It shouldn't have been a real surprise that with in about six months NYC was getting back to normal.
Today, New York State and New York City are facing hard economic times. Just this past week Governor Patterson announced a huge budget deficit. Patterson stated that overspending by the state and Wall Street's meltdown will result in a $47 billion deficit over the next four years if nothing is done. Just a week prior to Patterson's announcement Mayor Bloomberg said the City's budget would swell by $500 million during the current fiscal year because of weakening tax revenues.
Joel Kotkin over at New Geography may have the answer that NYC needs: San Francisco. In his article he looks to San Francisco as a luxury city that reinvented itself after the dot.com meltdown. It may be time for NYC to diversify itself. The 9/11 recovery was fast because Wall Street recovered. Today it is different, the three main industries in NYC (finance, insurance, and real estate) are all on a major decline. I am hopeful that NYC will eventually pull out of this recession, but Mayor Bloomberg and Governor Patterson might want to start thinking differently about the industries that basically support the city and the state.
Images from the New Geography.