New York Crashes Into Reality ... Maybe

Few states in the nation have so many elected officials willing to ignore economic realities in order to expand the size and scope of government as New York.

In the once-Empire State, government spending moves relentlessly higher no matter the economic climate. In good times, it's time to throw taxpayer dollars around irresponsibly. In bad economic times, it's the same exact story. The only difference seems to be that during a tough economy, tax hikes accompany the big spending increases. That was the case, for example, last year.

A big factor: Public sector labor unions have long held sway over fiscal policy in the state.

And over the past six decades, this spending frenzy has been an overwhelmingly bipartisan affair, with both Democrats and Republicans enthusiastically partaking.

As a result, New York ranks as one of the most inhospitable places in the nation to live, work, invest and start up or expand a business. (Just check out SBE Council's "Small Business Survival Index" or "Business Tax Climate.")

But eventually, reality has to enter into policy decision making - or at least one would hope so...

Read the rest of this SBE Council Cybercolumn by Ray Keating here.