New York's Decade of Debt

As Matt Welch noted earlier, California’s reckless spending and general fiscal irresponsibility has prompted Gov. Arnold Schwarzenegger to ask for a second bailout from Washington. In today’s New York Post, the Manhattan Institute’s Nicole Gelinas explains why New York is in equally sad shape:

How much debt has New York amassed since the millennium? A decade ago, New York state owed $45.1 billion, including the public-authority debt it guarantees. (Figures, from the city and state comptrollers, are in today's dollars.) Today, the total is $61.9 billion, a 37 percent jump.

When the New Year's ball fell in 1999, New York City had borrowed $49.6 billion. Today, it's $64.9 billion, a 31 percent rise....

New York has done its borrowing without feeling much pain -- so far. Even as outstanding debt has skyrocketed, the city and state have enjoyed record-low interest rates, thanks to bubble-and-bailout monetary policy from Washington, which is still going strong.

Problem is, we've grown addicted -- and the addiction will cost more as interest rates rise.

If New York continues to borrow and spend as it has, it'll be squeezed on both ends. Debt costs will rise, and a less productive economy won't be able to pay.

Read the rest here. Reason on "Failed States" seeking federal handouts here.

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  • Fist of Etiquette||

    It seems to me that the solution is simple. New York should just tax the wealthy more. They can afford it.

  • hmm||

    Speaking of debt. Round two for GMAC coming to a theater near you.

    Is it still about selling cars?

  • hmm||

  • hmm||

  • thumb's up||

    Fist of Etiquette|12.30.09 @ 4:16PM|#

    It seems to me that the solution is simple. New York should just tax the wealthy more. They can afford it.


    I guess NYC/Bloomberg never heard this one:

    A quote attributed to Margaret Thatcher goes along the lines of

    "The problem with socialism is that eventually you run out of other people's money [to spend]."

  • hmm||

    he was kidding...

  • Fist of Etiquette||

    Margaret Thatcher was actually a woman, and I don't think she was kidding.

  • Not To Be A Dick, But||

    Margaret Thatcher was actually a woman

    citation needed

  • hmm||

    no picture no proof...

  • thumb's up||

    ...gender of the quoter is important because...?

  • ||

    Who cares?

    he was kidding... was directed at Fist's post.

  • BlogDog||

    I was appreciating the escalating level of snark until someone had to go all explanatory and spoil the fun.

  • ||

    It's a Snarkalanch!

    Everyone put your Sarcasm Meters to "Full Power"

  • healthscarequotes||

    the city so nice they should sell the naming rights twice

  • The Obamessiah||

    Of course you get bailed out...if your state has two Democratic senators, that is.

  • I, Kahn O'Clast||

    $61.9 billion is peanuts and barely more than 6% of the State's annual GDP. New York would be the 16th largest economy in the world on a stand-alone basis.

    This is what I dislike about Reason: You guys are not very good with math but love to throw numbers around if they sound good to you.

  • hmm||

    I think the 30+% might be the more significant number. If we are going to pick nits might as well pick the right ones.

  • ||

    6% of GDP, when? Before Wall Street tanked? Before we found the traders and bankers were trading & banking funny money? Back when $10 Million bonuses were handed out to both losers and winners? Different game now, it seems.

    Seems the dairy cows in upstate NY will have to be milked dry many times over to pay back those $61.9 billion peanuts you speak of.

  • ||

    Well at least the states can't print money.....oh what, the Fed will give them fresh printed bills anyway?

    /facepalm

  • Rhywun||

    PLEASE bail us out. We can't have teachers working past 55 or paying one dime toward their health care. It'd be madness!

  • ||

    The state takes 6% of GDP? Is that before or after the Fed takes 0?

    Keep your shoes shined; there is life outside NY.

  • ||

    Come on, productive conservative New York-dwellers, move out and take your tax dollars with you. ASAP.

    Dump this sorry-ass state into a financial ravine!

  • hayek||

    I left NY in 1994 and took my money with me. Good luck getting any more from me!

  • ||

    What would be more interesting is to see the total of its obligations at the beginning and end of the decade. Let's see the real numbers for not just debt on the books but unbooked obligations such as public employee pension and benefit liabilities, guarantees made etc.

  • Rhywun||

    Come on, productive conservative New York-dwellers, move out and take your tax dollars with you. ASAP.

    I would rather see some of them get elected (somehow) and Draper this shit. I happen to like New York (city and state) and would rather not leave.

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