Sunday, June 30, 2013

Edward L. Glaeser: Growth Engines

New York, like any city, needs entrepreneurship to survive. As old businesses become obsolete, new start-ups must replace them, or employment will wither. If a particular industry becomes hugely successful and brings vast wealth to a city, real-estate costs can soar, allowing the local government to overtax and overregulate complacently—and driving out the scrappy entrepreneurs who will build the economy of the future.
That’s exactly what happened in Detroit. If the current crop of mayoral candidates don’t want it to happen in New York, too, they must understand that cumbersome regulations and high taxes are discouraging the entrepreneurs the city needs. 

In a recent Zogby poll of New Yorkers carried out for the Manhattan Institute, 65 percent of respondents thought that the city administration wasn’t doing enough to encourage entrepreneurs and small businesses to increase their presence and hiring, and 67 percent considered “the current environment for the growth and development of small business in New York City” poor or fair. Similarly, a 2013 survey performed by and the Kauffman Foundation gave New York a grade of D for the ease of starting a new business.
Source: The City Journal Read full article. (link)

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