Tag Archives: infrastructure

Real Estate Developers Play and Never Seem to Have to Pay

Greenville   Our union signed a contract with the Regional Transit Authority in New Orleans or rather its management company, TransDev, yesterday. They handle the business end of routes, accounts, and schedules for bus and trolley lines in the city. Reading the paper before triangulating a trip between Louisiana, Mississippi, Arkansas, and Tennessee, I read an article about the burden of lower income workers and their commutes to work in New York City. This is all grist for our mill.

One takeaway from the article was pretty plainly presented. In summary, the New York Times reported on a 2013 study in New York City found that almost 800,000 residents commute more than an hour each way to work, most of them earning less than $35,000 per year. Black New Yorkers’ trips are 25% longer than whites and Hispanics travel 12% longer than whites. I was reminded of a quote from the Greek historian Thucydides writing about Athens hundreds of years ago: “The strong do what they can and the weak suffer what they must.”

The reporter quoted a President of the New York City Council speaking over 100 years ago about the building of the subway system in the city. The main driver on the routes was the huge expected increase in property values along the lines. He argued that since real estate interests had lobbied for the project and were the ones benefiting, they, not just the public, should bear the costs. Obviously it didn’t happen then, and it hasn’t happened since. Another bunch of billions was recently spent extending a subway line there, and once again developers promoted, and the public paid. Meanwhile workers schlep to their lower paying jobs from farther distances because they can’t afford rents closer to work any longer, and they do so on buses in the slowest transportation system in the country for the most workers.

I wish the story were only about New York City, but increasingly the real estate interests and their supporters from the President on down, fueled by campaign contributions, push for more public expenditures that skew transportation towards tourism and away from workers, gentrify and jack up rents and eviction rates, forcing zombie work schedules, slow rolls, and hoopty rides to be thin ribbon holding people together between work and home all over the country. Developers dream and then sell out and run as fast as they can once the sticks are built so that some other sucker works the field, while property taxes rise, rents soar, and the public pays the bills.

How about that for a depressing cycle that we seem unable to break in city after city? We’re all prisoners to a national policy that no one owns or seems able to change, while we are all forced to pay for it, as Thucydides said because they can and, it seems, because we must.


Short Courses from Top Economists on Financial Collapse & Inequality

New Orleans   

How about “economics for idiots” for all of us out there who might have trouble remembering what we have learned from the Great Recession as well as the Bush “build the rich” program of recent years?  Thanks to the Times we have this today in easy to access fashion.



Here’s Alan S. Blinder, the Princeton professor and former Federal Reserve vice chairman’s “10-step recovery plan:”

  1. Remember that people forget
  2. Do not rely on self-regulation
  3. Honor thy shareholders
  4. Elevate risk management
  5. Use less leverage
  6. Keep it simple, stupid
  7. Standardize derivatives and trade them on exchanges
  8. Keep things on the balance sheet
  9. Fix perverse compensation
  10. Watch out for consumers

Here’s Joseph Stiglitz, Columbia professor and Nobel laureate, on how inequality is preventing financial recovery and growth.

  1. Weakens the middle class and their ability to drive the economy with consumer spending.
  2. Hollowing the middle class means that they are unable to invest in their future, by educating themselves and their children and by starting and improving businesses.
  3. Weakening the middle class is “holding back tax receipts” which means that “the government cannot make the vital investments in infrastructure, education, research and health that are crucial for restoring long-term economic strength.”
  4. Inequality is associated with more frequent and more severe boom-and-bust cycles.

Now if we could just get people to learn these lessons….