We have often discussed the reality that a major U.S. city or an entire state government will soon go bankrupt and have to go through painful bankruptcy proceedings. The lead up to the financial collapse will likely unfold as follows:
City or state politicians run an inefficient and ineffective government operation which requires taxes to be raised and services to be cut including police, fire, education and other vital human resources.
The raising of taxes and the deterioration of the quality of life leads to residents and businesses fleeing these cities and states for locations where they can keep more of their hard earned money and the quality of life is better.
This out migration results in a smaller tax base which results in a tax revenue shortfall for the cities and states in question.
Rather than make government operations more efficient and effective, the involved politicians cut more services and raise the tax rate more to try and manage the out migration situation.
The raising of taxes and the cutting of services causes even more residents and businesses to flee the city or state and the financial death spiral is in place.
These trends are already under way in the following states: New York, New Jersey, Illinois, and California, and the following cities: New York City, Chicago, Los Angeles, San Francisco, and a few other cities. Taxpaying residents and businesses are leaving in far greater numbers than who are coming into these states and cities.
The leader in the race to a city bankruptcy court has varied over time:
Chicago is often cited as a front runner given its violent city streets and the resultant high murder rate and its horrible financial condition, both currently and its unfunded future liabilities.
Los Angeles also has the high crime rate problem along with other problems such as massive homelessness, poor schools, etc.
San Francisco has seen its homeless rate and crime rate soar which has forced the closing of many retail stores and malls and the fleeing of businesses and residents to other locations.
But with the likely election of Zohran Mamdani as the next mayor of New York City, NYC is now the odds on favorite to go bankrupt first. Mamdani is a communist parading as a socialist and his policies will result in higher taxes, more business regulations, lower quality of life, more crime, more danger, and a likely massive outflow of taxpaying residents and businesses.
Think about what he has said about his policies and philosophies in the past:
He hates Israel, having called for a boycott of the country and its Jewish population, refusing to condemn the call for a global intifada against Israel, and not condemning the October 7th Hamas massacre of innocent Jewish civilians.
He has threatened to arrest the Israeli prime minister, Benjamin Netanyahu, if he sets foot in NYC, a clear violation of international law and another hateful stab against Israel.
He wants to raise taxes on the wealthy city residents who are already taxed to the hilt by city and state taxes, with the racist reference to taxing white billionaires (“Shift the tax burden from overtaxed homeowners in the outer boroughs to more expensive homes in richer and whiter neighborhoods.”)
He is going to operate city government run grocery stores that are non-profit that will drive other food stores, supermarkets, and bodegas out of business and out of the city as they see their sales undercut by state run grocery stores.
He is not going to charge anyone to ride city buses which will turn the city buses into roving motels for homeless people who can warm up during the cold winter and cool down in the hot summers without paying for the privilege.
He is going to operate free day care facilities which means that those without kids living in the city will subsidize those with kids.
He is a major “defund the police” advocate which will demoralize the police force and result in fewer candidates to join the force and many more candidates to leave the force, increasing the crime rate in the city.
He wants to replace some police duties with social workers including responding to domestic violence 911 calls, endangering the lives of the women in imminent danger of domestic violence.
He wants to freeze rents on rental units in the city, eventually forcing landlords to reduce service and maintenance because of rising costs but stagnant rental revenue and will discourage any contractor from building new housing units since those contractors would not control their revenue stream.
He wants to get rid of the gifted and talented programs in city schools, resulting in a degradation of education in the city and stifling the learning of gifted kids.
So, given this not all-inclusive list of his likely policies, who will remain in the city:
Probably not a lot of Jewish folks, given his hatred for Israel.
Not white, wealthy residents who will see their already crushing income and property tax burden increase.
Not people who will now have to travel large distances to grocery shop since their local supermarkets and bodegas closed in the face of nonprofit competition from city stores, which will likely fail miserably as was proven when the city of Kansas City lost almost $20 million trying and failing to operate a single government owned and operated supermarket.
Not people who have to ride city buses since their quality of transportation life will deteriorate as they compete with homeless folks setting up home in the free buses.
Not people who have to subsidize the child care of others’ children.
Not people who are terrified of going out in the street because of the lack of police protection that will exist as a result of defunding the police and demoralizing those officers that remain on the job.
Not people who want to continue to live in run down apartment complexes because the owners and landlords cannot afford to fix those apartment issues because of a cap on their rental revenue.
Not people who want to see their talented and gifted kids succeed in school, education and life since he will treat all kids the same.
Not people who own businesses who will see their taxes go up, their police protection go down, and their customer base leave town.
The city has seen a population decrease of about 300,000 residents from 2020 through 2024. That is about a 3.5% reduction BEFORE taxes go up, grocery shopping gets much more difficult, bus rides get more dangerous, police protection goes down, Jewish residents become strangers in their own city, education levels suffer, and rental homes start to deteriorate from reduced maintenance. Why would anyone who could get out of the city want to stay who is Jewish, wealthy and white, care about their kids, care about their lives, etc.?
Think about what is going on outside of the city:
The governor of my state of Florida, Ron DeSantis, thinks he can find a way to eliminate property taxes and if not successful, at least substantially reduce them while Mamdani is raising the tax burden for his residents.
Texas just got approval to operate its own stock exchange beginning in 2026, a stock exchange that will be almost totally virtual, possibly eliminating the need for the New York Stock Exchange and the high paying jobs and resultant city taxes that come from those jobs.
JP Morgan, a titan in the banking and financial world, now has more employees living and working in low tax Texas than in the New York State and New York City combined,
Thus, major financial entities, the backbone of the New York City economy and tax base, are not afraid to relocate their employees to other states such as Texas and Florida as Miami also becomes a major financial center.
Thus, there are other lower tax, lower crime, and better quality of life options for New York City residents, options that will look more and more attractive as Mamdani rolls out his communist/socialism programs. And as residents leave, businesses start to fold as their customer base shrinks.
Immigrants flock to this country because of freedom and the chance to have a better, wealthier, and safer life for their families. Mamdani will not provide that dream, he will replicate the situation that these immigrants fled from.
Oh, and one other tidbit of likely failure. Mamdani cannot push through a lot of his tax increases unless approved by the state government. And the current governor of New York, Kathy Hochul, says she will not approve any tax increases, actually knowing what will happen with higher city taxes: “I don’t want to lose any more people to Palm Beach [Florida]. We’ve lost enough.” Thus, Mamadani is likely to not have enough money to fund his communism/socialism plans after all.
Given the above realities and the failure of Mamadani like policies around the world and in this country, it is now our opinion that New York City will win the race to bankruptcy court and it will happen relatively quickly, the financial death spiral that existed before his election will accelerate as a result of his plans.
Which means that very shortly, the movie sequel will begin shooting, “Escape From New York, Part 2 - Mamdani Chronicles.”**********************
If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:
https://www.change.org/p/deseat-congress-reset-freedom
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