US Taxes, Spending and Deficits: Big Consequences for Coral Gables

August 7, 2010 Leave a comment

A recent statement of Simon Johnson clarifies the taxing and spending options of the US now and in years ahead.

In summary…

Most of the discussion of federal budget issues today is misdirected.  The shorter run issues are dominated by the likelihood of another financial crisis – and the implications that would have for the budget deficit – but no “fiscal hawks” even want to acknowledge the issue.  It is very hard to take anyone seriously if they refuse to look at these (uncontroversial) numbers.  Medium term, we obviously need tax reform.  The good news, in a sense, is that the US has an antiquated and inefficient tax system; it would not be hard to improve how this operates, raising revenue and actually reducing distortion.  Longer term, Medicare is obviously a tough problem with no easy solutions yet in sight.  But the argument “just cut entitlements” cannot be taken seriously. [underlines added]

He raises what are important facts and risks for the US economy, and indeed for the future of the City’s budget, spending, taxes and economy.  Coral Gables authorities and leaders should not be too optimistic about the future of the US economy.  Stagnation is more likely than a happy growth even for a premier city like Coral Gables.

Filed under Budget, Business and Commerce, Coral Gables, Finance

The City’s Own View of Coral Gables’ Future. Sustainable or Not?

August 6, 2010 Leave a comment

What is the future of the economy of Coral Gables and what on activities and sectors of the local and regional economy will depend the future economic growth and well being of Coral Gables.   The Economic Sustainability Department (formerly the Development Department) has the responsibility for promoting the city and local economy for existing and new business.

The small Department basically seeks to keep and expand the businesses that we have.  It does not seem to recognize the need to identify and seek out new business sectors and lines of activity that would help lead the city grow faster in the future.  It is a small service unit rather than a place to promote new activities on its own or to help the city think about the options for the future.

The Department has a business development plan to assist realtors, building owners, and organizations in attracting domestic and international prospects by utilizing direct contacts, follow-up visits, brochures and audiovisual material. A special focus is placed on multinational recruitment and retail development. The Department also emphasizes the need for developing a better relationship with the existing business community to help improve the retention and expansion of these businesses.

via City of Coral Gables Web Site.

The city has published “A Briefing on the Economic Base in Coral Gables” (2009)  and “Coral Gables, The City Beautiful” (2010) for interested parties.  These reports emphasize the following features of the local economy:

  • The City’s multinational business…includes…oil production, health care, biomedical research, international finance, import and export, transportation, manufacturing, travel and tourism, news information services, telecommunications, and construction real estate.
  • …high quality of life, convenient access, responsible growth, and a diversified economy, property values will continue to increase, supplemented by new appropriate construction…
  • Coral Gables is considered one of the premium office markets in South Florida…
  • …regional headquarters for over 175 multinationals…
  • …over 100 countries are served from corporate addresses…
  • Since…1925, the largest single employer has been the University of Miami…
  • …the combined totals of multinational employment exceed 6,000…
  • …Coral Gables has nine retail districts…
  • …over 30 banking institutions…
  • The median house value has increased by nearly 1,400% since 1970…
  • …Strict zoning laws, a favorable property tax rate…

Filed under Business and Commerce, Coral Gables

The Biltmore Hotel Management Wants A Free Lunch

July 28, 2010 Leave a comment

The comportment of the Biltmore Hotel is similar to that of Wall Street–their lemma is “Privatize the Profits and Socialize the Losses”.

The Biltmore management has suddenly discovered that they are losing money and they want the City of Coral Gables (meaning the taxpayers) to pick up their loses.  We cannot recall that they came forward to volunteer extra payments to the city when times were good and occupation rates were strong. Rather they have suddenly discovered millions of dollar in costs that they want reimbursed.

Sadly, the taxpayers of Coral Gables are not in a position to subsidize a Biltmore, an unprofitable company that benefits just a very people.

I say get another operator or return the Hotel to the US Government before taxpayers have to pay more property taxes or suffer reductions in their own services.

The Biltmore is an anachronism, it is the model of an earlier time when money was flowing.  It is time for the City Commissioners to side with their citizens in this matter; the US is entering a long period of austerity and the Coral Gables citizens should not have  to bailout the Biltmore.

Filed under Business and Commerce, Coral Gables, Finance

National Unemployment at 9% until 2012

July 23, 2010 Leave a comment

If you think that someway the South Florida economy will miraculously come back before 2012 or 2013 look at the this, the projection that national unemployment will be above 9% (that means a lot more for South Florida) until 2012.  The City of Coral Gables needs to adjust its budget and taxes to this reality.

CNN Political Ticker: All politics, all the time Blog Archive – White House: Unemployment at 9% until 2012 « – Blogs from CNN.com.

Filed under Business and Commerce, Coral Gables, Florida

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