Author: Larry Littlefield

In my prior post, I pointed out that although New York City’s poverty rate is 55% higher than the national average, its private, mostly non-profit employment in the Social Assistance sub-sector relative to population is 154% higher than the national average — 2 ½ times that average.  Yet, despite all these people hired, at first glance, to tend to their well being, advocates and analysts say the city’s poor are not well off compared with poor people elsewhere.  Disaggregating 2004 annual average employment relative to population for this sub-sector into specific industries, on finds a complex picture that raises many issues, but let’s put the headline up front.  Excluding one industry, one finds that New York City employment in the rest of the Social Assistance sector relative to population is just 54% higher than the national average, dead on what one would expect given the city’s higher poverty rate.  On a net basis, therefore, that one industry can explain all the additional Social Assistance employment in excess of what one would expect given the city’s higher poverty rate.  In that industry, New York City’s employment per 100,000 residents is seven times the national average, a greater disproportion than for just about any other sector.  That industry is…

Is New York City the best place to be poor?  If the measure of quality of life for the poor and troubled is the number of people hired to provide them with services, it certainly appears, at first glance, to be one of the best places.   Or at least it should be.

In 2004, according to data from the Governments Division of the U.S. Census Bureau attached to a prior post here, the City of New York employed 278 persons in “public welfare” agencies for every 100,000 residents.  The national average was 93; the rest of New York State averaged 231 and New Jersey averaged 121.  Much of the social service work in the city, however, is actually done by private, mostly non-profit agencies in the Social Assistance sub-sector which, according to the current industry classification system, “provide a wide variety of social assistance services directly to their clients.”  According to covered employment (ES202) data for the second quarter of 2005, New York City had 1,857 people employed in this sub-sector for every 100,000 residents.  The national average was 708; the rest of the New York State averaged 1,048 and New Jersey averaged 730.

As noted in my prior post, we are facing a slowly building economic crisis on energy, and we are facing it without leadership. But what would leadership on energy look like? And do I have a proposal? As it so happens, I do. The unfortunate fact about the demand for energy in the United States is that it is “inelastic” in the short run. Since we cannot start living in compact cities or throw away our energy-intensive homes and vehicles overnight (doing so would take a lot of energy), we consume nearly as much no matter how much it costs, desperately bidding against the rest of the world for the limited supply, sacrificing other aspects of our standard of living. In the long run, if we had had leadership, we would have made different choices over the past 20 years. In the long run, if we had leadership, we might make different choices over the next 20 years. In the short run, however, there is only one thing that suburban, auto-oriented America can do to substantially reduce its energy consumption – carpool on a large scale.

I am more concerned about the intermediate-term future of the U.S. economy today that I have been in nearly 20 years, since 1986 and 1987. At the end of the 1990s I knew the stock market was overvalued and heading for a fall, but felt that the underlying economy was sound. Now, despite the hard work of the American people and the innovation of American companies, we are vulnerable to a significant downturn in our standard of living.

Those of you who read my first posts on this blog may recall reading that from 1990 to 2005 local government employment fell in New York City while soaring in the rest of the New York State, with public school employment a particular growth sector outside the City.  You may also recall that public school employment outside the city soared after the state implemented the STAR program, diverting even more of the state taxes paid by city residents away from the city’s schools, and in particular after the first ruling in the Campaign for Fiscal Equity case.  It is almost as if the school districts elsewhere were rushing to establish “facts on the ground” that could not be taken away regardless of the needs of the city’s children or the burden on its taxpayers.  Well, more recent data from the State Department of Labor shows that from June 2005 to June 2006, that process continues.

Sorry, to those who are bored, to take my argument with Mr. Wonk to another post, but I think this is an important issue. 

I believe the "free media" given to incumbent politicians during their terms, combined with a lack of similar attention to challengers (other than those with "interesting" backgrounds like KT), is in part responsible for the lack of competitive legislative and congressional elections.  As responsible, if not more so, than imbalances in money and gerrymandering.

When I’ve had this discussion with journalists such as Ben Smith and Erik Engquist (the latter, unlike other news outlets, did write about my protest campaign for state assembly two years ago). Ben responded that it’s a dilemma since you want to be evenhanded but you also don’t want to waste the reader’s time with something that is not significant — like a challenger with no chance to win.  Erik pointed out that you have to work to get the attention of reporters rather than just send literature and letters asking for an interview, as I did, and that there are other ways (community organizing, prior successes) to draw press attention.

Now that I know how to post spreadsheets here, why not go nuts?

I attached a spreadsheet on health care finance backing up my assertions on that subject in an earlier post.

I attached a spreadsheet of comparable fiscal 2004 local government finance data to my prior post on who the winners  are in New York tax and spending priorities.

And, for comparison, attached here is more detailed information for FY 2002, for New York City, the Downstate Suburbs, Upstate Metros, the rest ofr New York State, New Jersey, the United States, and Fairfield County.

In addition, for the fun of it, I also attached on spreadhseet on comparative local goverment finance in several parts of California.  I whipped this up to send out to Donna Frye, in lieu of donation, who was running for Mayor of San Diego.  I hope she found it useful, but she lost.  Would that we had a Donna and Skip Frye in New York.

New Yorkers who have been paying attention must wonder what to think about the interests that rule the roost in Albany.  On one hand, you local doctor or hospital might do its best to make you well.  On the other hand, despite getting far more taxpayer money here than elsewhere, the Greater New York Hospital Association and Local 1199 put out commercials threatening to kill our babies if there is any limit on their funding.  On one hand, many NYC schoolteachers use their own money to buy school supplies.  On the other hand, the UFT has as its top goal a retirement at age 55, not a better education for New York City’s children.  Many city residents have friends and relatives in the suburbs or upstate who seem nice enough.  But their representatives in Albany have created a reverse Robin Hood school aid system that may be the least just in the nation, all at the expense of New York City’s children.  The members of the TWU rebuilt the transit system after the 1970s.  But they went on strike to get an early retirement at age 50, the cost of which would re-create the 1970s, without ever thinking about their own situation relative to those who pay their salaries, most of whom have no pension at all.  Your grandma seems nice.  The AARP gets more health benefits for the seniors, without giving a damn about the uninsured, or what will be left (besides debt) for future generations when they get old.  Your state legislator seems like a nice guy; the legislature is evil.