Intervention in NYC

Recently, there has been a trend of emigration from America’s largest cities to smaller cities, or more rural and suburban areas. New York, particularly New York City is a place that has seen rapid depopulation. According to the Empire Center, New York had a net domestic outflow of 1.5 million between 2000 and 2008. The city is growing now, but relies heavily on foreign immigration. Alarmingly, the residents moving out of New York county (home of manhattan), have a 28 percent higher income than those moving in. According to 2018 gubernatorial candidate, Larry Sharpe, New York continues to lose about 100,000 people a year. I contend that interventionist policies are ruining cities such as NYC (also San Francisco, LA, and a number of other cities) and that people are moving away largely because of the effect of poor government policies and programs.

According to an NYC hospitality alliance survey, 76.5% of full service restaurant respondents reduced employee hours and 36.5% eliminated jobs following the December 31st, 2017 minimum wage increase. After the minimum wage increase to $15 an hour on December 31st, 2018, of limited service restaurants, 75% say they will reduce employee hours and 53.1% say they will eliminate jobs. The minimum wage increase to $15 an hour (for businesses with 11 or more employees) is already causing restaurants to raise prices, and make people bus their own tables. Sure, people can bus their own tables, but more restaurants now have signs saying “bus your own table”; A job which used to be an easy job for a high schooler wanting to make some cash, is now becoming increasingly more difficult. According to a Fraser institute study in Canadian provinces, a 10% increase in minimum wage increases unemployment of those age 15-24 by 3-6%.

Another case in which intervention is ruining New York City is the restriction on rideshare services like Uber and Lyft. The subway system is deteriorating, wait times are increasing, and traditional taxis are becoming increasingly less relevant, but in an effort to stop congestion, NYC is considering more regulations on rideshare services. In August 2018, NYC introduced a year long freeze on the issue of new licenses to rideshare drivers. After this year, the Taxi and limousine commission will be able to, regulate where passengers can be picked up and dropped off, set utilization targets, and set caps on the number of rideshare drivers allowed on the streets. Of course rideshare services have a vested interest in fighting these regulations, and have spoken out against them, but these regulations, represent the extent of the deep-state in New York.

Regulations like minimum wage have a disproportionate effect on restaurants or whoever else is directly involved with compliance, but they really do seem to be ruining a beautiful city like New York. Maybe regulations like, but not limited too, minimum wage increases and restrictions on widely popular rideshare services are the cause of the massive middle class Exodus from New York to places like Florida, Texas, and Arizona.

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