Legacy of the “Slesnick Commission”

The city is nearing the close of an era and we may be getting a different commission next year.  The end of what we might call the “Slesnick Commission” has left a background of living through a bubble economy, a break down in management oversight and an abortive adaptation to changing economic conditions.

The next commission and mayor will find:

  • Still a bloated government;
  • A pattern of relentless property tax increases in goods times and in bad;
  • Mismanagement of the Country Club lease;
  • Mismanagement of the Biltmore Hotel lease;
  • A $200 million (to date)  pension liability;
  • An accumulation of unsustainable salaries and benefits;
  • A contracting tax base;
  • A resistance to building the edifice of a modern, open, well organized government with the participation of residents in significant decisions;
  • Weak and compliant city boards;
  • Unwelcome and costly projects, such as the new museum;
  • A government without an apparent strategy to promote new industries and businesses in new growth clusters; and
  • The end of large-scale commercial and residential real estate development for long period.

Certainly, there have been achievements of the commission, but they are swamped by the problems.  Some of these problems are not the blame of the commission, including the inevitable economic collapse.  But the reaction of the City of Coral Gables to the crisis has been insipid.

Dead in the Water

My pessimism is widespread–

Nouriel Roubini, the New York University economist who predicted the global financial crisis, said U.S. growth will be “well below” 1 percent in the third quarter and put the odds of a renewed recession at 40 percent.

via Roubini Says Third Quarter Growth in U.S. to Be ‘Well Below’ 1% – Bloomberg.com.

Housing Prices over 60 Years

More evidence that home prices have been, more or less, constant since WWII.  The bubble was completely unusual so be sure that your house will not be a good long-term investment.  There is a good chance that someday the government will decide that it is a huge give away to subsidize people’s homes with large interest rate deductions.  Imagine when the choice is between the home deduction and paying for medicare and social security in the future.  The latter two are likely to win in the future as the deficits have to be faced realistically.

…home prices have actually been pretty steady over time. In fact, if you look at a fifty-year period after World War II, home prices were absolutely steady. In 1947 the Case-Shiller index stood at 110, and in 1997, adjusted for inflation, it stood at 110 again.

via Chart of the Day: Housing Prices Since WWII | Mother Jones.

Our Democracy: The Money Hurts Coral Gables, Too

This is my view on our weakening democracy.

We all know that our political system now runs on money and powerful political advertising (“the message”).  There is very little effort or opportunity to discuss transcendental economic, financial and social problems that afflict our society.  Campaign issues are fabricated and simplified to draw support from one or another groups of voters, even though the issues are not relevant for governance.

Our democratic system was created on a philosophy of openness and access, but now our democracy is, in point of fact, mainly open to those who influence the system through money and their subordinate organizations (political parties), who select their candidates and supply the money or the wherewithal to get the money (fund raising).

Ideally, the system should be more open, less gerrymandered locally and nationally and less influenced by monied interests.  We understand that an open system is a goal, an ideal.  But there should be a better balance between monied interests and an openness that allows for more public participation, an open government and less outright influence peddling or corruption.

Our politicians are drawn to openness and participation during campaigns, but in governing our city there is plenty evidence that the politicians are afraid to subjects the decision making process to greater community involvement.

Coral Gables is not exempt from the deficiencies of our current system in which limited groups finance election campaigns.  A passive electorate (none more passive that Coral Gables!) has failed to educate itself and fight against the government decision making that limits access to public opinion.  We will soon be occupied by the annual budget exercise of the City of Coral Gables and, if it were not compulsory by law, we might find it hard to get access to speak.