New York has the worst economic outlook of any US state, according to a recent ranking that comes as thousands flee the Big Apple amid escalating crime and chaos.
The American Legislative Exchange Council (ALEC) released its 13th annual ranking of rich and poor states on Wednesday. Researchers have looked at issues such as taxation and the economic competitiveness of the state.
The economic outlook score shows gross domestic product, absolute inward migration, and nonfarm wage employment.
Utah, for the 13th straight year, topped the standings and New York, for the sixth straight year, was last.
The future of New York, one of America’s greatest economic cities, if not the greatest, is becoming less and less palatable to the wealthy thanks to a series of decisions made by officials.
Since March, Mayor Bill de Blasio has stripped the NYPD of $1 billion and moved 13,000 homeless people to city hotels.
He waved at wealthy New Yorkers who fled at the height of the pandemic to avoid contracting COVID-19, and said they will be replaced, apparently paying no attention to the gaping fiscal deficit they will leave behind. they definitely withdraw their money from the city.
Governor Andrew Cuomo, on the other hand, is begging them to stay to keep the city afloat.
These are the economic outlook rankings whose measures are based on the state’s gross domestic product, absolute inland migration, and non-farm wage employment.
New York has been ranked the worst state in the country for its economic prospects
The state has been hit hard by COVID-19 and the protests (pictured), and its economy is suffering
Stores that were already struggling due to the pandemic have closed due to the protests
New York was the global epicenter of the pandemic for an agonizing month in which, at its peak, nearly 1,000 people across the state died every day.
The lockdown was among the strictest in the country, putting bars and restaurants out of business for 11 weeks.
The reopening has been equally painful for many businesses.
Gyms, for example, are still not allowed to welcome customers again. Restaurants and bars that are only allowed to serve people outside face strict restrictions that require them to sell food with alcohol and close by 10 p.m. at the start of the week.
All of this is creating a mass exodus of New Yorkers that is having a deplorable effect on the economic prospects of the city and state.
“One of the ultimate measures of whether or not a state is doing is whether people are voting with their feet toward that state or away from that state,” said Jonathan Williams, one of the report’s authors.
“Of course, we’ve seen big trend lines over the years now through changes in federal policy such as limiting state and local taxes or the SALT deduction that has put pressure on high-tax states and has moved away migration from states like New York.
“We have recently seen these trends accelerate.”
New York is also suffering from a lack of tourism, with cultural institutions closed
A vandalized bank is seen in Manhattan’s Greenwich Village neighborhood on May 31
Another, economist Stephen Moore, added: “You are seeing a migration of people out of these high-tax states.
“It really puts a strain on the budgets of states like New York, Connecticut, New Jersey and Rhode Island.”
The other states in the bottom five were Vermont, New Jersey, Illinois and California.
Phil Scott of Vermont is the only Republican governor of the five.
Phil Murphy of New Jersey; JB Pritzker of Illinois; Gavin Newsom of California and Andrew Cuomo of New York are all Democrats.
At the top of the ladder, the governors of Utah, Wyoming, Idaho and Indiana are all Republicans.
Only fifth-best North Carolina Governor Roy Cooper is a Democrat.
Cuomo acknowledged Aug. 3 that the state, and New York City in particular, was in trouble.
Between March 1 and May 1, about 5% of New Yorkers fled the city. Crime is skyrocketing in the city, with 1,000 people already shot this year and homicides up 50%.
Homeless encampments have sprung up in several Manhattan neighborhoods, much to the dismay and dismay of residents.
Homeless people have taken to living along a stretch of streets from Chelsea to Manhattan
Upper West Side residents complain about homelessness, pictured on August 7
Guardian Angels conduct a nighttime patrol on the Upper West Side on August 10
Homeless people were spotted drinking on the Upper West Side and urinating in public
Cuomo said he’s been begging people to return to New York from their second homes so they can pay taxes to help offset the state’s growing coronavirus shortfall.
“I literally talk all day to people who are now in their Hamptons house who also lived here, or in their Hudson Valley house, or in their Connecticut weekend house, and I say “You have to come back! We’re going to dinner! I’ll buy you a drink! Come on, I’ll cook!”
“They’re not coming back at the moment.
“And you know what else they think about?” “If I stay there I will pay less income tax” because they don’t pay the New York surtax.
He noted that the wealthiest 1% of New York’s population bears about 50% of the state’s tax burden.
The plea comes amid dimmed hopes that the federal government’s upcoming COVID-19 relief package will contain any additional aid for struggling states and local governments.
If additional dollars don’t arrive in New York on top of dwindling revenue streams, Cuomo and other state officials have said the hit could result in 20% cuts to the city’s annual budget. health, education and local governments.
Donald Trump’s executive order on COVID relief, which provides for unemployment benefits to be increased by an additional $400 per week, with states paying $100, has been met with anger by governors of struggling states.
States, unlike federal entities, must balance their budgets.