One of the most positive trends of the past few years has been an emphasis on creating a culture of entrepreneurship in New York City and State. Until the last few years of the Bloomberg Administration economic development had meant bribing existing large companies, companies that were shrinking over time and threatening to move away, to promise to keep some jobs in New York. Bribing them with tax breaks and subsidies. New York had played this losing hand for years. More recently encouraging people to start new businesses, and at the very least not throwing obstacles in their path, has been the policy. Here as elsewhere the trend has been to latch on to whatever is trendy – new and social media, information technology, biotech, artisanal food products, artisanal alcohol, Greek Yogurt – and ignore everything else. But at least there has been some sense that economic development means encouraging and providing an environment for acts of creation, not just taxing the suckers and transferring money to existing business and unions that are failing in the marketplace but contributing to political campaigns.
With the Democrats back in charge of City Hall I feared that economic development would revert to the bad old days. After all, Bill DeBlasio is yet another ambitious politician who will require campaign cash for his next move, and businesses that do not exist yet do not make campaign contributions. Moreover entrepreneurs have not been part of the Democratic Party coalition since the New Deal, which favored existing large corporations, and entrepreneurs have generally been seen by Democrats as a source of revenues and a foil to be demonized, while existing companies are seen as a source of jobs. The good news, according to some recent reports, is the DeBlasio Administration is apparently unwilling to get in a tax break bidding war with New Jersey over large existing financial businesses threatening to leave the state. It would be better news, however, if the DeBlasio Administration (and Cuomo Administration) would double down on Bloomberg’s late term policy of encouragement for new companies. Particularly those in a decidedly non-trendy sector: banking.