NYC is going broke due to Covid shutdowns. The mayor finally sees the handwriting on the wall. I was in Manhattan the other day. It seems busier but it has a long way to go.
New York City will reopen 100% on July 1, Mayor Bill de Blasio says
An official report released Wednesday details the full economic impact of the loss of tourism and business in New York City due to the coronavirus pandemic.
New York State Comptroller Thomas DiNapoli said a 10-year period of record growth in tourism came to an abrupt end in 2020, as 43.7 million fewer visitors came to the city because of COVID-19. (was around 65 million visitors the previous year)
Tourists spent only $13 billion in 2020 (instead of around $60B), a 73% decline from the prior year, and in the end, that will cost the city $1.2 billion in lost tax revenues in Fiscal Year 2021.
Employment in the tourism industry also saw a significant decline in 2020, as 89,000 jobs were lost from 2019, when employment reached a record 283,200 jobs.
https://www.cnbc.com/2021/04/29/new-york-city-mayor-bill-de-blasio-says-the-city-will-re-open-100percent-on-july-1.html
https://abc7ny.com/health/nyc-tourism-industry-decimated-by-covid-pandemic-report/10556641/
Everyone keeps on saying we are going to see an boom when this is over, but I just dont think it is going to happen, at least not in the blue states. PA, NY, NJ and the rest of the north east lost 30% of small businesses due to the lockdowns. That does not just fix itself.
On top of that, many liberals are still scared to go outside even if they are vaccinated. Too many in these regions have been broken mentally. I live in a fairly sane neighborhood, Roxborough, which is purple and leans red, so most of the time when I walk around most people are not wearing masks outside. This though is not the normal in the city, and I know many lefties who think even by Summer's end, they still dont think we should be doing anything. Red states will obviously fair better with this.
On top of that, I read that if you look at how inflation has been tracking over the first few months of the year and assume it continues, we are in a 16% to 18% inflationary curve already. Hold on to your bank accounts, because in a year your money will be worth a lot less. The reason for this is pointed to the government putting too much money into the market, artificially increasing future demand, while keeping people home during the last year, artificially decreasing supply. Houses, all building materials, gasoline, food prices, etc. have all gone up.
I think any uptick in GDP will be offset by inflation, if not more so. You cant throw a year long Covid-19 stay at home party without the bill eventually coming due.
