Posted by: coastcontact | June 19, 2013

City Mismanagement

Chicago, IL

In 1950, Chicago’s population peaked at about 3.6 million people. Since then, the city has lost nearly 1 million residents. Corruption, government bureaucracy, high taxes and a lack of a significant wealth-generating industry have all been cited as factors.

The city’s fastest growing industry is Business Products & Services according to a study conducted by city government.  Seaton Companies, a headhunter firm is their largest fast growing company.  While head hunting companies do create jobs, the numbers would be small compared to the more likely industries like finance and manufacturing.

P1000968

 On Wilshire Blvd. Beverly Hills – Panasonic DMC FZ28, f/5.6, 1/500 sec., ISO 100, hand held 

Los   Angeles seems to be taking a page from the Chicago playbook.  Added taxes, added fines, and potential lost jobs are the consequence of surrendering to environmentalists.  The latest decision by the Los Angeles city council is to ban plastic shopping bags at all stores and require stores to charge 10¢ for every paper shopping bag.   

The Los Angeles County unemployment rate is 9.3%.  To drive that number even higher the city council should consider new taxes at restaurants, hotels, and amusement parks.  The reason would be we need more money to clean the streets or hire more police.

Of course this makes no sense.  But who said City Hall is sensible?

There is the issue.  The city councils of Chicago, Los Angeles, and many other cities are responding to pressure groups rather than doing the right thing.  Of course they say they are doing the right thing.  With high unemployment in Los Angeles and a falling population in Chicago, are they doing the right things?

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Responses

  1. The economy has been a major push factor for residents in the Frost Belt, particularly those in hard-hit areas like Michigan . “They had a terrific excess of people as a result of the collapse of the economy,” says Stoll. Detroit, the state’s largest city, has the highest metropolitan unemployment rate in the U.S. At 20%, it more than doubles the national average.

  2. Under the new law, a writer must pay the business license fee and the tax on gross proceeds even if he or she has earned that money doing some or all of the necessary research and writing “on location” away from the city.

  3. As a result of these strategies, Santa Clarita assesses fewer taxes than any other city in the county of Los Angeles. The city does not assess a utility user tax, allowing businesses to save up to 7 percent or more on their utility bills. Santa Clarita also does not require a gross receipts tax, allowing businesses to save tens of thousands of dollars on their bottom lines. In these ways, the city is doing everything it can to keep businesses doing what they do best: business!


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