The Consequences of America's Shrinking Cities and States

Americans are on the move. They're leaving various cities and states to avoid high taxes, crime, high costs of living, and to seek better jobs; or, to simply retire.  The downside to this is potential bankruptcies as the tax bases shrink; leaving cities and states with expensive pensions and other commitments that are left over from a time when populations were much higher.

This was certainly the case in the now-bankrupt Detroit.  In 1950, that city's population was 1.8 million. By 2013, it had only 700,000 residents.  But, Detroit's problems -- as the largest city in Michigan -- are taking that state along with it.  Right now, Michigan is on the verge of losing one of it's  Congressional seats due to it's slowing growth.  As a state with nearly 10 million residents, the population increased by only 6,270 from 2014 to 2015; according to the Census Bureau. 

Illinois is in a similar "state" of affairs.  It, too, is close to losing a Congressional seat to some other faster growing states like Texas.  Key to the loss there, is the fact that its largest city, Chicago, is shrinking in size.  New York state is also losing people, but in its case, many of those leaving are high end earners.  Even the weather-desirable California is seeing its population growth slowing.  The fact is that 8 states have growth rates of less than 1/2 of a percent and well below the inflation rates for running the state's expenses.

We are getting very close to an actual bankruptcy of the entire State of Michigan, and not just a single city like Detroit.  Not far behind are Cleveland, Pittsburgh, St. Louis, and Youngstown, Ohio who have all seen losses greater than 50% from their peak populations.  The list of all the cities (see references) that have lost populations is substantial.  As a result, people located in those areas are bound to see higher taxes as the legislatures try to cope with increased costs and a lower tax base.  Raising taxes would only cause even more people to leave.  This is a serious spiral that America cannot afford.  The city/states that are effected need to rethink ways to restore population without raising taxes or we will all wind up paying higher taxes to bail them out.

References:

The Incredible Shrinking Illinois: http://www.chicagomag.com/city-life/February-2016/Where-Is-Illinois-Losing-Population/

Chicago area sees greatest population loss of any major U.S. city, region in 2015: http://www.chicagotribune.com/news/local/breaking/ct-chicago-population-record-loss-met-20160324-story.html

Taxpayers are fleeing New York in droves: http://nypost.com/2016/09/15/taxpayers-are-fleeing-new-york-in-droves/

The Decline of Detroit: https://en.wikipedia.org/wiki/Decline_of_Detroit

Mich. population rebound is slowing, census shows: http://www.detroitnews.com/story/news/local/michigan/2015/12/22/mich-population-rebound-slowing-census-shows/77746798/

Once a boom state, California sees a historic period of slow population growth: http://www.sacbee.com/site-services/databases/article69054977.html

Warning: New Jersey in Midst of Millennial Outmigration: http://www.njspotlight.com/stories/16/02/15/new-report-warns-that-new-jersey-is-in-midst-of-millennial-outmigration/

New Jersey Herald: Time to address population loss: http://www.njherald.com/article/20160327/ARTICLE/303279973#

List of U.S. states by population growth rate: https://en.wikipedia.org/wiki/List_of_U.S._states_by_population_growth_rate

Shrinking cities in the United States: https://en.wikipedia.org/wiki/Shrinking_cities_in_the_United_States

CDC Incompetence: Allowing Possibly Infected People To Live Normally Among Us

According to the Director of the CDC, they are closely monitoring all those who treated the first U.S. Ebola patient. Estimates are that this is about 70 people. Now, we are told that another nurse, one of that 70, has been diagnosed with Ebola and, only hours before, traveled by air to and from Cleveland, Ohio.  As a result, we now have another 132 passengers who may have been in contact with this 3rd U.S. patient. But, what about all those other people that came in contact with that healthcare worker either before or after taking the flight?

Obviously, the CDC isn't containing the disease when, in fact, it allows possibly contaminated persons to live their normal lives; including air travel.  How many people have to be infected before the CDC treats this disease with serious caution?

I'm not buying the fact that Ebola is not contagious until there are symptoms.  I hardly think that it is like a light switch when, as soon as there is a 101.5 degree or higher fever, a person is somehow instantly contagious. My guess is we will soon find out that this, too, is a lie.  Ask yourself this.  Why is the CDC trying to find those 132 passengers from that flight if, supposedly, that infected healthcare worker was said to only have a low-grade fever when she took that flight?

One last thing.  I'm tired of people downplaying this by saying more people die of the flu each year in this country than have died from Ebola.  We are only in the early stages and it looks to be spreading.  As a disease, it has a 70% kill rate. The flu kills less than one-tenth of one percent of those who contract it.  So, let me ask you this: What would you prefer to get infected with? The flu? Or, Ebola?

References:

Ebola Health Worker Flew Hours Before Reporting Symptoms: http://www.bloomberg.com/news/2014-10-15/ebola-health-worker-flew-day-before-reporting-symptoms.html

CDC says it missed opportunities to contain Ebola: https://news.yahoo.com/cdc-says-missed-opportunities-contain-ebola-044302209.html

WHO: Ebola Death Rate Now 70%; 10,000 New Cases a Week Possible: http://cnsnews.com/news/article/who-ebola-death-rate-now-70-10000-new-cases-week-possible


 

The Real Story of Unemployment and the Economy In America

Every month, we get an accounting of the overall unemployment rate.  Last month, the number moved up slightly to 6.2% from June's 6.1%.  All-in-all, that number seems reasonable; given that we were at nearly 10% unemployment in 2011. As a result, many Americans feel that unemployment is not a big problem anymore.

However, out of that top-level 6.2%, there are some very disturbing facts.

First, many of our major cities are still suffering.  Take Chicago, for example. That city's unemployment rate is at 8.4% or 35% higher than the national average.  Los Angeles sits at 7.6%.  Cleveland is at 8.5%,  and Detroit -- still in bankruptcy -- is at a whopping 14.5%.

The two cities that depend on gaming and leisure revenues -- Las Vegas and Atlantic City -- are still on the high side of unemployment; indicating that Americans don't have the ability to resume vacationing at these pre-recession, entertainment hot spots.  In Las Vegas, the unemployment rate is still 7.6%.  Atlantic City is almost double that, and worse than Detroit at 14.9%, and we are now seeing once high-trafficked casinos closing for lack of visitors.

The bottom line is that many of our major cities have high rates of unemployment because, quite frankly, their economies haven't recovered.  All three of the major metropolitan areas -- New York, Los Angeles and Chicago -- are struggling to keep their heads above water, and at least 20 more smaller cities such as Oakland, Fresno, and Harrisburg could see themselves in bankruptcy court very soon.

So, when I hear that President Obama is going to "pivot" to the economy and how well it's doing under his watch, I know that he's only able to do so because many Americans only hear the top line numbers every month and too many of those will falsely think it's the truth.  But, this country -- now 5 years since the recession ended -- is still in a world of hurt; and, that's a story that is definitely not being told.

References:

Chicago Unemployment Rate: https://www.google.com/search?q=chicago+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

Los Angeles Unemployment Rate:  https://www.google.com/search?q=Los+Angeles+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

Cleveland Unemployment Rate: https://www.google.com/search?q=cleveland+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

Detroit Unemployment Rate: https://www.google.com/search?q=Detroit+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

Las Vegas Unemployment Rate: https://www.google.com/search?q=las+vegas+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

Atlantic City Unemployment Rate: https://www.google.com/search?q=atlantic+City+unemployment+rate&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a&channel=sb

Casinos no longer golden for Atlantic City: http://www.latimes.com/nation/la-na-atlantic-city-blues-20140725-story.html

3 huge cities flirting with bankruptcy Staggering under pension obligations and debt, any of these could follow Detroit into court:  http://money.msn.com/investing/post--3-huge-cities-flirting-with-bankruptcy

20 Cities That May Face Bankruptcy After Detroit: http://www.newsmax.com/US/cities-bankruptcy-after-detroit/2013/08/06/id/519081/

Obama pivots to economic legacy: http://thehill.com/news/administration/213888-obama-pivots-to-economic-legacy