CONLEY COMMENTARY (WSAU) – In 1975 New York City teetered on the brink of insolvency. President Ford said ‘no’ to a federal bailout, prompting the famous newspaper headline: “Ford to City – Drop dead.”
Remember in 1975 New York was a much more important city than it is today. New York was the financial hub of the country. Today large banks have relocated to Charlotte. Brokerage houses have small, token offices in the city. Actual stock trades are processed in South Dakota. New York was the largest port on the East Coast. Today more goods enter the country through Baltimore.
Yesterday Treasury Secretary Scott Bissent issued a similar “drop dead” message. He told New Yorkers that if they choose Zorhan Mandami as mayor, there will be no federal bailout when his policies fail. Actually, there will be less federal aid for the city.
Consider just one of the Zoltan’s proposals: free public transit. About 44% of New York City’s transit operating costs are recovered by fares from riders. The rest comes from regional and city taxes. And the federal government covers the difference. If fares are no longer collected, the MTA’s budget has an $8-billion hole. There would be service cuts; fewer subways and buses for more people who want to ride for free.
Nor should there be a federal bailout. Why should tax dollars from Omaha and Des Moines be sent to New York so New Yorkers can ride for free?
Imagine how much more money will be needed for things like free childcare and city-subsidized supermarkets.
A correct line in the sand has been drawn. Go down this socialist path and the federal government won’t bail you out. New York will pay for its own mistakes.
Chris Conley
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