The FIRE boom did drive up costs, but the real estate glut helped keep
them down. Meanwhile, social decay and the lack of a skilled labor force
make it more difficult to do business here. Giuliani's cutbacks will only
worsen this situation.
Treacy: You have hit the nail on the head here! The NYC public schools had
large vocational programs in woodworking for many years after they had
no such industry in the city. [EMAIL PROTECTED]
Doug
Doug Henwood [[EMAIL PROTECTED]]
Left Business Observer
212-874-4020 (voice)
212-874-3137 (fax)
On Tue, 16 Aug 1994, Eban Goodstein wrote:
> Doug--
>
> Thanks for getting back to me. Do you have any insights as to why things
> are so bad right now? Up through 1990 the NYC unemploment rate was not too
> far out of line for big cities in the Northeast, and about 2-3 points above
> the rest of the state. Now it is 4 points higher than other big cities, and
> 5 points higher than the rest of the state.
>
> Is it a Wall Street bust, with the other trends you talked about now
> showing up? If so is the bust "endogenous" in the sense that the boom drove
> up costs for F.I.R.E industries and they are now bailing out (and will come
> back when costs settle down)? Or is it a shift in technology, allowing more
> and more F.I.R.E firms to flee a sinking ship?
>
> Any thoughts would be helpful...
>
> eban
>
>
> **************
> Eban Goodstein Department of Economics
> 518-584-5000 (2739) 811 N. Broadway
> fax: 518-584-3023 Saratoga Springs, NY 12866
> [EMAIL PROTECTED]
> ************************
>
>
