Demand Side

Not that this surprising but let me point it out nonetheless.

From the Recorder (here):

But fellow city Supervisor Ronald Barone Sr. said he could not share that same view when city property owners are facing a tax hike of more than 7 percent because of declining property values in the city.

“Being a city supervisor, I don’t want taxes to go up 7 percent,” said Barone, who represents the city’s 3rd Ward. “That’s just too high.”

And the recent article discussing the decline in sales tax revenues (I can no longer find the link) on the order of 9% decline only enforces the need for driving demand. But when local unemployment tops 9.5% and home values are declining, the numbers should hardly be surprising nor should they be comforting.

It’s a no-win cycle to not focus on growth to drive demand instead steadfastly believing that you can ‘turn it around’ through the usual supply-side arguments. And if you’re going to posit that retail development on Route 30 is a game changer for the city with no strategy for bringing people and spending into the city, I simply give up.

We’re toast.

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