Kevin Williamson worries that Bill de Blasio, New York’s new mayor, will to cause the rich to flee the city:
His tax-the-rich program overlooks that an ever-dwindling number of high-income people and firms have a strong financial attachment to New York. You meet a lot more hedge-fund guys in Dallas these days than you used to. The headquarters of a fair number of Manhattan-based financial firms already have over the years followed their employees to Connecticut or beyond.
The super-rich may or may not mind that much — especially given that their income tends to come in the form of capital gains, which receive preferential tax treatment — but your $100,000-a-year midlevel workers already have discovered the roads to Charlotte and Salt Lake City. And as Mike Bloomberg was lambasted for pointing out, you can’t ignore the super-rich, either, given that fewer than 100,000 New Yorkers pay half the city’s taxes, and 500 of them pay 15 percent of the city’s taxes. That is problematic in and of itself, but it’s not like everybody else gets off the hook — de Blasio’s tax hike on those who make $500,000 or more will have real consequences for people in less rarified income brackets. When your landlord, vendors, or customers get a tax hike, their problems have a way of becoming your problems, which is why a fair number of people who will never have incomes approaching that cutoff point understand that they will nonetheless be affected by it. That and a great deal of skepticism about de Blasio’s commitment to sustaining Mayor Giuliani’s crime policies have a fair number of New Yorkers across the income spectrum rethinking their leases.
Richard Schragger strongly disagrees:
If a city’s economy is otherwise healthy, then redistributive fiscal policies are unlikely to make much of a difference. And mayors probably cannot control the size of the local economy as much as they claim anyway. But mayors can fight inequality by channeling resources to those who need them most. To those who believe that society has an obligation to pursue social justice, the moral benefits are obvious. The economic benefits of having an urban, healthy, educated workforce are obvious, too.
If a revived urban liberalism is possible, then its time is now, while cities like New York can take advantage of their privileged position as highly desirable places to live. Not all cities are in that enviable position. Many cannot afford what Mayor de Blasio proposes. But if New York City’s new mayor succeeds, he will advance an idea that has mostly gone out of fashion: that cities can play a significant role in creating an urban middle class by providing the kinds of resources necessary for upward mobility. Those resources are basic and obvious: security, education, transportation, health, and shelter. Expanding access to those kinds of municipal goods will create a more equal city. And it may teach us that a progressive city is still possible.
Barro argues that de Blasio will have to become “New York’s most pro-development mayor in decades” if he wants to accomplish his goals:
If he hopes to buy labor peace and fulfill his progressive missions, de Blasio will have to find another way to get more money coming into the city’s coffers. That’s where development comes in. To the untrained ear, de Blasio has run as a critic of developers, complaining that too many “luxury condos” are going up in New York. But he has also been clear that more development is a key to growing the city’s economy and addressing the affordability crisis. And while many of the city’s business elites are freaking out about de Blasio’s “class warfare,” he’s maintained good links with (and raised a lot of money from) the real estate industry.
Drum attacks another part of Williamson’s argument – the idea that crime is suddenly going to skyrocket:
I almost don’t care anymore if you accept the hypothesis that reductions in childhood lead exposure are primarily responsible for America’s dramatic decline in violent crime over the past two decades. But can we at least get our facts straight? Lots of big cities have seen drops in their violent crime rate. At least three others—Chicago, Dallas and Los Angeles—have seen declines as big as New York’s. Others, like Phoenix and San Diego, now match New York’s crime rate. They did this without Giuliani and Bloomberg. They did it without CompStat. They did it without broken windows. Hell, even New York did it for four years without these things: Its crime rate started plummeting in 1991, long before these reforms showed up.
(Photo: Bill de Blasio stands near New York Mayor Michael Bloomberg during the 9/11 Memorial ceremonies marking the 12th anniversary of the 9/11 attacks on the World Trade Center on September 11, 2013. By Adrees Latif-Pool/Getty Images)
The Dish 