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.

For the Record: New Home Sales Way Down

Nothing much to add to this.  It’s hard to be an optimistic right now.

Sales of newly built homes dropped to their lowest level since the government started tracking the numbers more than four decades ago, with demand for home purchases down in all four regions of the country.

The Commerce Department reported Wednesday that new homes sold in July at an annual rate of 276,000, down 12.4 percent from June and down 32.4 percent compared with the same time last year.

via New home sales hit lowest level.

More on the US Economy: Fodder for the City of Coral Gables

These comments Gavyn Davies of the Financial Time suggests that there are many signs of danger for a sluggish economy and greater pressure on the central bank (Federal Reserve) to expand the money supply and the economy.

I am becoming increasingly concerned about the extent of the slowdown which is now underway in the US economy, a trend which has not yet been fully recognised by the Federal Reserve. Admittedly, some decline in the growth rate was always inevitable at this stage of the cycle, because the large boosts to growth stemming from the upswing in inventories and from fiscal stimulus were certain to lose momentum about now. But the pick up in more sustainable sources of growth, notably consumers’ expenditure and capital investment, has so far been more anaemic than I had hoped, and the improvement in the labour market may be going into reverse…

via US economy is slowing more than the Fed has recognised | Gavyn Davies | FT.com.