REBNY Luncheon

Today I had the privilege to attend a Real Estate Board of New York's Luncheon, of which the guest of honor was Mayor Michael Bloomberg. Mayor Mike graciously took the oportunity to give a re-election campaign speech, noting how crime is way down, property values are way up, and how his administration is spurring more commercial and residential growth then any previous administration, etc.

Then he dropped the stadium bomb.

"And after what the IOC Evaluation Commission said while they were here last month, there can no longer be any doubt. Their message was clear: no Sports and Convention Center, no Olympics: End of story. You can’t have it both ways; if you’re opposed to one, you’re opposed to the other."

Damn, can't this guy give it a break? I'm not opposed to any stadium plans, nor the 2012 Olympics. I am simply against paying for them with taxpayer monies. To read the entire speech, you can read it at here at NYC.gov. Alternatively, you can watch the entire event here.

But to add insult to injury, he went on saying how many "permanent" jobs the Unions' and other anti-stadium activists would be denied; how much money the city expects to generate in taxes over the next 30 years from the project; and the crowning-glory:

"The municipal unions that oppose the stadium need to realize that without new tax revenues, we won't be able to afford as big a raise for our workforce as we’d like to have."

Looking at all this from the Austrian perspective, you feel kind of marginalized, and on the side. At the same time, you feel sorrowful for these people who think that the government is responsible for all the growth, and is therefore entitled to more of your money. With Austrian economic logic, you understand that despite the government, the market somehow manages growth (although unfortunately so in this case since this growth is spurred by inflationary dollars.)

Now wait until you hear this gem- "Those who say we would do better with commercial and residential development over the rail yards are ignoring what we have already accomplished in the surrounding area. On the Far West Side, we just completed the largest rezoning in the City’s history..."

What, is he actually patting himself on the back for removing the blocks to development?! Give this man a cookie! He removed one set of arbitrary land and building zoning restraints, and replaced them with another set of arbitrary limitations, and he thinks himself a saint! Would anyone doubt the boom in new construction once arbitrary zoning regulations are loosened?

My stance on both land and bulding zoning restrictions is that they are unethical, and unwise economic policy, especially to those who aren't on buddy-buddy terms with all the bureaucratic mechanations. But we are too late in the game to remove them now without suffering massive market corrections- and just pushing it off towards the economic judgement day.