NEW YORK—In his speech to the Economic Club of New York on Monday, Mayor Michael R. Bloomberg outlined several strategies aimed at strengthening New York City’s economy, aid small businesses, create jobs and increase support for freelance workers.
The Mayor reported that the financial crisis on Wall Street resulted in over $54 billion in losses, numerous layoffs, and downstream effects with impact on all industries. He indicated that 36,000 New Yorkers lost employment in January of 2009, resulting in the largest one-month drop in over three decades. “The financial crisis is having an impact in every neighborhood,” stated the Mayor.
He reiterated that the old strategies, such as borrowing capital to meet operating expenses and subsiding on crime-fighting and education spending, had not been successful in the past, and indicated that preserving parks, hospitals and the subway system are key in maintaining an acceptable quality of life in New York City. The Mayor also stated that keeping the biggest taxpayers in the City during this economic downturn will ease the burden on the rest of the residents.
The Mayor indicated that his administration has been preparing for the expected economic downturn for the past 2 years. He noted that the City’s affordable housing program has a less than 0.1 percent mortgage foreclosure rate, high school graduation rates have increased by over 20 percent, and crime rate has been reduced by 30 percent since 2002. “As tough as 2009 will be, the City has entered this recession at a higher point than we’ve ever been and better positioned than ever to ride out the storm,” said Mayor Bloomberg.
The Mayor reviewed several key actions implemented by his administration to strengthen New York City’s economy, including the following: The administration has cut $2.5 billion in spending, while implementing the strategy “to do more with less” across all public agencies. A web-based center is planned to provide access to all permits and licenses for small businesses in the effort to eliminate unnecessary bureaucracy. The City has awarded $3 million in grants to businesses in the effort to facilitate employee retention in New York City. Several programs have been implemented to aid businesses with obtaining loans and incentives, creating business plans, finding affordable legal services and expanding employee training. The Workforce1 Career Centers that support job training activities have extended their hours of operation to include nights and weekends. Job placement through the centers has increased from 500 per year in 2004 to over 17,000 in 2008. The Mayor stated that the centers plan to place 20,000 workers in 2009. The FastTrac New Venture Program was launched in partnership with the Kauffman Foundation to provide training to people aspiring to start their own businesses. This initiative aims to increase the number of jobs through entrepreneurial efforts and creating of new companies. A $43 billion capital plan was implemented to improve the City’s infrastructure while creating tens of thousands of construction-related jobs. A subway extension of the Number 7 Train to Hudson Yards is currently being built as part of this initiative.
Mayor Bloomberg also announced that the City partnered with the Freelancers Union to increase support and incentives for independent workers, including:
“We cannot climb out of this recession by shutting our doors to immigrants. We’ll only make things worse. The reality is we need more immigrants – not fewer,” noted Mayor Bloomberg. “We need more scientists, engineers, doctors, and teachers whose ideas and innovations will build the economy of the future – and keep America the world’s economic superpower,” he added.
The Mayor stressed that the City should not be dependent on any one industry for economic stability. As part of the diversification strategy, the City has invested in various industries over the past seven years, including tourism, film and television, media, fashion, health care, bioscience, green development, information technology and education. “The most stable and successful cities will be those that – like smart investors – diversify their portfolios,” stated Mayor Bloomberg. “That’s why promoting small businesses and entrepreneurialism is so important. But we’re also working to attract and support mid-to-large companies in growing industries,” he continued.
“By nurturing small businesses that are more diverse than ever, by attracting capital and talent that is more mobile than ever, and by offering a quality of life that is better than ever, the global economy gives cities more opportunity than ever to create their own future,” concluded the Mayor.
The Mayor reported that the financial crisis on Wall Street resulted in over $54 billion in losses, numerous layoffs, and downstream effects with impact on all industries. He indicated that 36,000 New Yorkers lost employment in January of 2009, resulting in the largest one-month drop in over three decades. “The financial crisis is having an impact in every neighborhood,” stated the Mayor.
He reiterated that the old strategies, such as borrowing capital to meet operating expenses and subsiding on crime-fighting and education spending, had not been successful in the past, and indicated that preserving parks, hospitals and the subway system are key in maintaining an acceptable quality of life in New York City. The Mayor also stated that keeping the biggest taxpayers in the City during this economic downturn will ease the burden on the rest of the residents.
The Mayor indicated that his administration has been preparing for the expected economic downturn for the past 2 years. He noted that the City’s affordable housing program has a less than 0.1 percent mortgage foreclosure rate, high school graduation rates have increased by over 20 percent, and crime rate has been reduced by 30 percent since 2002. “As tough as 2009 will be, the City has entered this recession at a higher point than we’ve ever been and better positioned than ever to ride out the storm,” said Mayor Bloomberg.
The Mayor reviewed several key actions implemented by his administration to strengthen New York City’s economy, including the following: The administration has cut $2.5 billion in spending, while implementing the strategy “to do more with less” across all public agencies. A web-based center is planned to provide access to all permits and licenses for small businesses in the effort to eliminate unnecessary bureaucracy. The City has awarded $3 million in grants to businesses in the effort to facilitate employee retention in New York City. Several programs have been implemented to aid businesses with obtaining loans and incentives, creating business plans, finding affordable legal services and expanding employee training. The Workforce1 Career Centers that support job training activities have extended their hours of operation to include nights and weekends. Job placement through the centers has increased from 500 per year in 2004 to over 17,000 in 2008. The Mayor stated that the centers plan to place 20,000 workers in 2009. The FastTrac New Venture Program was launched in partnership with the Kauffman Foundation to provide training to people aspiring to start their own businesses. This initiative aims to increase the number of jobs through entrepreneurial efforts and creating of new companies. A $43 billion capital plan was implemented to improve the City’s infrastructure while creating tens of thousands of construction-related jobs. A subway extension of the Number 7 Train to Hudson Yards is currently being built as part of this initiative.
Mayor Bloomberg also announced that the City partnered with the Freelancers Union to increase support and incentives for independent workers, including:
- Increasing the unemployment safety net for the independent workers that make up more than 15 percent of the City’s workforce
- Working with the State to eliminate the Unincorporated Business Tax, which double-taxes independent contractors and sole proprietors
- Drafting a proposal for creating a federal unemployment benefit for independent workers, and Increasing the amount of affordable office space for aspiring entrepreneurs and freelancers.
“We cannot climb out of this recession by shutting our doors to immigrants. We’ll only make things worse. The reality is we need more immigrants – not fewer,” noted Mayor Bloomberg. “We need more scientists, engineers, doctors, and teachers whose ideas and innovations will build the economy of the future – and keep America the world’s economic superpower,” he added.
The Mayor stressed that the City should not be dependent on any one industry for economic stability. As part of the diversification strategy, the City has invested in various industries over the past seven years, including tourism, film and television, media, fashion, health care, bioscience, green development, information technology and education. “The most stable and successful cities will be those that – like smart investors – diversify their portfolios,” stated Mayor Bloomberg. “That’s why promoting small businesses and entrepreneurialism is so important. But we’re also working to attract and support mid-to-large companies in growing industries,” he continued.
“By nurturing small businesses that are more diverse than ever, by attracting capital and talent that is more mobile than ever, and by offering a quality of life that is better than ever, the global economy gives cities more opportunity than ever to create their own future,” concluded the Mayor.
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