{"id":513343,"date":"2022-11-21T02:58:11","date_gmt":"2022-11-20T23:58:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/techs-slow-motion-crash-is-now-mayor-eric-adams-problem\/"},"modified":"2022-11-21T02:58:11","modified_gmt":"2022-11-20T23:58:11","slug":"techs-slow-motion-crash-is-now-mayor-eric-adams-problem","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/techs-slow-motion-crash-is-now-mayor-eric-adams-problem\/","title":{"rendered":"#Tech\u2019s slow-motion crash is now Mayor Eric Adams\u2019 problem"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e7445a9667\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e7445a9667\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/techs-slow-motion-crash-is-now-mayor-eric-adams-problem\/#%E2%80%9CTechs_slow-motion_crash_is_now_Mayor_Eric_Adams_problem%E2%80%9D\" >&#8220;Tech\u2019s slow-motion crash is now Mayor Eric Adams\u2019 problem&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CTechs_slow-motion_crash_is_now_Mayor_Eric_Adams_problem%E2%80%9D\"><\/span>&#8220;Tech\u2019s slow-motion crash is now Mayor Eric Adams\u2019 problem&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<div class=\"inline-module inline-module--columnist inline-module--author\">\n<div class=\"inline-module--author__img\">\n            <img decoding=\"async\" width=\"76\" height=\"69\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/nicole-gelinas.png?w=76&amp;h=69&amp;crop=1\" class=\"attachment-nyp_columnist size-nyp_columnist\" alt=\"Nicole Gelinas\" loading=\"lazy\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/nicole-gelinas.png 76w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2013\/08\/nicole-gelinas.png?w=38 38w\" sizes=\"auto, (max-width: 76px) 100vw, 76px\"\/><\/div>\n<\/div>\n<\/aside>\n<p>Not even a week after <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dol.ny.gov\/system\/files\/documents\/2022\/11\/meta-platforms-inc.-formerly-facebook-inc.-2022-0052-11-9-2022.pdf\">Facebook laid off\u00a0871 New York City employees<\/a> and not even two after <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dol.ny.gov\/system\/files\/documents\/2022\/11\/warn-twitter-nyc-2022-0050-11-8-2022_0.pdf\">Twitter laid off\u00a0418 locals<\/a>, Mayor Eric Adams announced the city\u2019s deficits over the next 3 \u00bd years are $1.5 billion worse than he projected in July, for a total\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nyc.gov\/assets\/omb\/downloads\/pdf\/fpu11-22.pdf\">$13.4 billion<\/a>\u00a0budget gap.<\/p>\n<p>Welcome to the city\u2019s tech recession.<\/p>\n<p>For three decades, going back to early-\u201990s Mayor David Dinkins, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.city-journal.org\/new-yorks-amazon-win\">New York\u00a0has courted the tech industry <\/a>to make us less dependent on Wall Street jobs.\u00a0<\/p>\n<p>And this effort worked. Last year, tech employed 172,570 people in the city, per an October <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.osc.state.ny.us\/files\/reports\/osdc\/pdf\/report-10-2023.pdf\">report by\u00a0state Comptroller\u00a0Tom DiNapoli<\/a>, up from fewer than 60,000 in 1995.<\/p>\n<p>New York captured an outsized share of nationwide tech growth, propelling the state as a whole to the nation\u2019s third-largest tech employer, with 321,000 jobs, behind California (1 million) and Texas (half a million).<\/p>\n<p>There\u2019s no denying tech\u2019s boom powered New York City\u2019s economy and budget. Tech workers are the perfect taxpayers. Young (38, three years younger than the city\u2019s average private-sector worker) and male (71%), they\u2019re big earners without requiring public services like schools.<\/p>\n<p>The tech sector accounts for just 4.9% of city jobs, says the comptroller, but 10% of wages. With the city and state\u2019s progressive tax structure, that means they pay an even higher share of income taxes. And techies pay state and local taxes when they cash out stock options.<\/p>\n<p>This oversized contribution to the city budget is bested only by Wall Street, whose similar number of employees \u2014 also about 5% of the city\u2019s private-sector workforce \u2014\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.osc.state.ny.us\/files\/reports\/osdc\/pdf\/report-11-2023.pdf\">make up about 22% of private-sector wages<\/a>.\u00a0<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/twitter-nyc.jpg?w=1024\" alt=\"Adam's deficit announcement came as tech companies like Twitter and Meta have shrunk their New York City workforces.\" class=\"wp-image-24727875\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/twitter-nyc.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/twitter-nyc.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/twitter-nyc.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Adam\u2019s deficit announcement came as tech companies like <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> and Meta have shrunk their New York City workforces.<\/figcaption><figcaption><span class=\"credit\">AP Photo\/Mary Altaffer<\/span><\/figcaption><\/figure>\n<p>Tech has been about all that\u2019s kept New York going since 2020. Tech jobs increased by 34% from 2016 to 2021, DiNapoli notes, while the total private sector lost 3.3% of its jobs. \u201cJob losses,\u201d he says, \u201cwould have been worse by a third\u201d during the pandemic \u201cif not for the tech sector.\u201d<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>All industries suffer regular downturns, but it\u2019s about the worst time for New York City to see its newish golden goose suffer one. We\u2019re still missing 2.4% of our pre-pandemic private-sector jobs, or more than 100,000 positions, pretty much the worst performance in the country.\u00a0<\/p>\n<p>Then there\u2019s real estate. Tech was the\u00a0<em>only\u00a0<\/em>industry actually adding to its commercial real-estate base during 2020 and 2021, when everyone else was shedding floors. But now <a rel=\"nofollow noopener\" target=\"_blank\" href=\"http:\/\/cbre.vo.llnwd.net\/grgservices\/secure\/NY_Manhattan_November-22.pdf?e=1668914576&amp;h=1d9e09fbc69149e67bf85e0cf87e2fa2\">Manhattan\u2019s office-vacancy rate is 15%<\/a>, twice the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/img1.wsimg.com\/blobby\/go\/8b077786-e9ac-41f3-88b5-7b48129212fc\/downloads\/CBRE%20-%20Q3%202019%20US%20Office%20Figures.pdf?ver=1631583694150#:~:text=the%20economic%20expansion.-,Note%3A%20Ranking%20includes%20markets%20with%20at%20least%20150%2C000%20office%2Dusing,CBRE%20Econometric%20Advisors%2C%20Q3%202019.&amp;text=The%20office%20vacancy%20rate%20fell,lowest%20level%20since%20Q3%202001.\">pre-COVID rate<\/a>, and still rising as tech, too, tries to sublease its office space to other tenants.<\/p>\n<p>And tech may be facing not just a short-term economic blip but a longer-term employment decline. For two decades, since the recovery from the 2000 tech-bubble burst, companies like Facebook and Google have minted money. Even companies without consistent profits \u2014 like Twitter and Uber \u2014 had no problem attracting investor cash.<\/p>\n<p>So there was no cost discipline in the tech sector. Facebook\u2019s employee roster was up nearly 30% just in the past year, to\u00a0more than 87,000\u00a0worldwide.<\/p>\n<p>Facebook is still a profitable company \u2014 but with the Nasdaq index of tech stocks down 31% off its high of a year ago, investors are far less likely to pump money into unprofitable companies, like food-delivery firms, meaning the gravy train of high-paying jobs may have halted indefinitely.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/migrant-tent.jpg?w=1024\" alt=\"Part of the city's extra budget funding is going to &quot;emergency contracts&quot; for things like the migrant tent city on Randall's Island.\" class=\"wp-image-24727874\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/migrant-tent.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/migrant-tent.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/migrant-tent.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>Part of the city\u2019s extra budget funding is going to \u201cemergency contracts\u201d for things like the migrant tent city on Randall\u2019s Island.<\/figcaption><figcaption><span class=\"credit\">Matthew McDermott<\/span><\/figcaption><\/figure>\n<p>So what is Adams doing to prevent even higher budget deficits? Despite gestures toward cutbacks, city-funded spending for this fiscal year, at $78.8 billion, is 5.9% above Mayor Bill de Blasio\u2019s spending last year. (The remainder of the city\u2019s $104 billion budget comes from federal and state sources.)\u00a0<\/p>\n<p>And that\u2019s even though the city\u2019s public-sector workforce has\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.osc.state.ny.us\/files\/reports\/osdc\/pdf\/report-13-2023.pdf?utm_medium=email&amp;utm_source=govdelivery\">shrunk by 6.4% <\/a>since the pandemic, as people have quit or retired rather than return to work.<\/p>\n<p>If we\u2019re spending more to pay fewer people, what is the extra money going to?<\/p>\n<p>Partly, it\u2019s costs for pensions and health care \u2014 but also for unaccountable, opaque, \u201cemergency\u201d contracts, like erecting a tent city for migrants on Randall\u2019s Island only\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ibo.nyc.ny.us\/iboreports\/ibo-asylum-seeker-letter-and-memo-november2022.pdf\">to immediately tear it down<\/a>, and other temporary resources for the border crisis, totaling at least $16 million.\u00a0<\/p>\n<p>And that\u2019s also\u00a0<em>before<\/em>\u00a0we\u2019ve even begun to address a key question: With the city\u2019s labor contracts expired, raises to keep up with inflation would cost an additional $3 billion a year.<\/p>\n<p>Adams has a lot of work to do \u2014 work that our tech bros can\u2019t magically solve.<\/p>\n<p><em>Nicole\u00a0Gelinas is a contributing editor to the Manhattan Institute\u2019s City Journal.<\/em>\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/11\/20\/techs-slow-motion-crash-is-now-mayor-eric-adams-problem\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Tech\u2019s slow-motion crash is now Mayor Eric Adams\u2019 problem&#8221; Not even a week after Facebook laid off\u00a0871 New York City employees and not even two after Twitter laid off\u00a0418 locals, Mayor Eric Adams announced the city\u2019s deficits over the next 3 \u00bd years are $1.5 billion worse than he projected in July, for a total\u00a0$13.4&#8230;<\/p>\n","protected":false},"author":1,"featured_media":513344,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/11\/newspress-collage-24726149-1668988563010.jpg?quality=75&strip=all&1668970608&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[135891,5069,66147,4974,91076,5070,4953,91261,10401],"class_list":["post-513343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-11-20-22","tag-economy","tag-eric-adams","tag-facebook","tag-gig-economy","tag-jobs","tag-new-york-city","tag-recession","tag-twitter"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/513343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=513343"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/513343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/513344"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=513343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=513343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=513343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}