After decades of adopting and implementing socialist policies, New York City is on the verge of going bankrupt for the first time in nearly 40 years.
According to Breitbart, financial experts are predicting — and warning — that there are signs that the city is headed for a financial disaster.
The experts argue that many individuals and businesses leaving the city for lower tax areas coupled with city government spending being at an all-time high is also having a major effect on the Big Apple.
Making matters even worse, the last time New York City almost filed for bankruptcy was in 1975, when former President Gerald Ford was in office and would not give the city a bailout package to settle its massive debt.
Here’s more from the Breitbart report:
“The city is running a deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform,” economist Milton Ezrati told the New York Post. “New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.”
The city’s budget deficit has reached an all-time high over the past year. New York City’s long-term liabilities— including pensions, bonded debt, and retirement benefits for city government employees— reached a record-high $257.3 billion, according to an October 2018 Citizens Budget Commission report.
Even though the city’s budget deficit has reached record highs, Mayor Bill de Blasio has shown no signs of curbing the city’s spending.
In fact, de Blasio is adding $3 billion in spending to the current $89.2 billion budget, and spending money at a rate that is three times the rate of inflation, according to the Post.
It also appears that de Blasio will not get help from fellow Democrat Gov. Andrew Cuomo, who is trying to address a $2.3 billion state budget deficit by using auditors to bill wealthy residents fleeing the state for lower-tax regions.
Cuomo’s preliminary budget proposed $600 million in cuts to money allocated to New York City.
For starters, the Big Apple has been behind Rep. Alexandria Ocasio-Cortez’s socialist “Green New Deal,” which studies reveal could bankrupt the entire nation.
One study revealed that the price tag for socialist measure comes out to $7 trillion, with another finding that it could actually cost nearly $50 trillion, which would be roughly seven times more than the original study.
The same goes for the “Medicare for All,” another socialist idea that NYC has been behind.
A study from the Mercatus Center at George Mason University found that the “Medicare for all” plan would increase government health care spending by $32.6 trillion over 10 years.
While getting “free” Medicare and health benefits sounds appealing, notable socialists fail to mention how taxpayers will be stuck footing the $32.6 trillion bill over 10 years.
A second study from Vox.com revealed that the “Medicare for All” plan would cost the United States a jaw-dropping $218 trillion over the next 30 years.
All of those socialist policies and agendas sure are expensive, and it could be pushing New York City into a total collapse.