Max Politics: "Issue Brief: The Economy" (May 1, 2021)
Host: Ben Max (Gotham Gazette)
Co-Host: Jarrett Murphy (City Limits)
Episode Overview
This episode dives deep into the economic issues shaping New York City's critical 2021 elections. Ben Max and Jarrett Murphy explore the pandemic's impact on employment, the intersection of economics with other key policy areas, the levers of power available to city officials, and the complex challenge of fostering both recovery and greater equity in the city’s economy. The discussion contextualizes the city’s historical economic cycles and frames pressing questions for candidates seeking office.
Key Discussion Points & Insights
1. Why the Economy Is Central to NYC’s Policy Landscape
- Interdependence: Economic health directly affects every aspect of city life—tax collection, inequality, public safety, and social cohesion.
- “It feeds into city in a very direct way, covering all other issue areas, because the economy is essential to generating taxes... Economic activity and jobs feed into basically every other policy issue we could be talking about, right?” – Jarrett Murphy (00:34)
- Job Quality versus Quantity: Pre-pandemic low unemployment masked persistent poverty, revealing many jobs paid too little to support a decent living.
- “Even when unemployment was under 4%, the poverty rate in the city was extremely high.” – Ben Max (09:18)
2. COVID-19's Extraordinary Impact
- Illustrating disruption, Murphy notes:
- “...just an incredible fall off in the past year. I think one of the questions is obviously what happens beyond that chart...is the population going to come back? Are people going to return to offices? Is retail ever going to look like it used to? Is dining, tourism, are those things ever going to come back?” – Jarrett Murphy (05:37)
- The uncertainty is unprecedented, posing major questions for every candidate.
3. Political Perspectives on Economic Development
- Bloomberg vs. de Blasio: Contrasting mayors’ philosophies—from pro-business growth to a focus on reducing inequality.
- “Mayor Bill de Blasio...has often...talked about trying to make the city more equal...in a way that I think a lot of candidates in the 2021 election are actually trying to get away from...” – Ben Max (01:27)
- Campaign Implications: 2021 candidates are rethinking both the messages and policies around fairness, growth, and unity versus division.
4. The Web of Policy Influence
- The city cannot unilaterally steer the economy—state and federal policies (minimum wage, tax deductions, stimulus) are vital.
- “No one has a lever controlling the economy at any level of power, but especially here in the city, a mayor is subject to the rises and falls of the larger economic sea...” – Jarrett Murphy (07:06)
- CUNY and Education: Preparing the workforce is critical, though higher education gets comparatively little political airtime.
- “...CUNY is a very important piece of the puzzle as well as the Pre K through 12 system...” – Ben Max (04:45)
5. City Levers for Economic Influence
- Land Use: Council’s decisions on rezonings (Amazon HQ2, Industry City) affect job trajectories and neighborhood development.
- Tax Policy: Debates about using incentives, reducing fines, and cutting “red tape” to support businesses.
- “...city tax policy and how it could be used to help small businesses...related to the economy, city policy related to things like business fines, business, business regulations.” – Ben Max (12:01)
- City Contracts & Capital Budget: City spending supports hundreds of thousands of jobs—direct hires and contracted services, e.g., human services, construction.
- “A couple of candidates...including Maya Wiley...about better using the city’s massive capital budget spending to create jobs, and especially to create good paying jobs for low income communities...” – Ben Max (12:33)
- Hiring & Operations: The city is one of the largest employers with huge secondary impacts on the broader economy.
- “City hiring is a huge part of the economy. 300,000 or so city employees obviously are a major part of the workforce.” – Jarrett Murphy (10:47)
6. Under-the-Radar Issues
- Informal/Gray Economy: Many residents are employed “off the books” and not counted in official statistics.
- “...many people who don’t participate in [the formal economy], maybe don’t participate in a formal way. They work in the gray economy...are paid under the table, they are unlicensed vendors...” – Jarrett Murphy (10:47)
- Public University System: CUNY’s quasi-independent structure sometimes leaves it out of economic debates, despite its critical workforce role.
7. The Dilemma of Austerity versus Stimulus
- City leaders must balance demands for fiscal responsibility against the economic need for public spending.
- “If the city cuts funding, if it cuts spending on capital, if it cuts jobs, that might have an effect to clean up the city’s balance sheet, but it will have a broader economic impact as well...” – Jarrett Murphy (13:41)
Notable Quotes & Memorable Moments
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On the Broad Reach of Economic Policy:
- “When we talk about the transit system, the education system, obviously that has an impact too. Maybe not as direct or as immediate, but there’s certainly a connection there.” – Jarrett Murphy (02:53)
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On Returning to ‘Normal’:
- “We don’t really want to return to the economy from before COVID. We want to bring jobs back, but we want to figure out how they can be better paying jobs with better benefits and not have 4% unemployment and 20% of the New York City population still living in below poverty.” – Ben Max (10:27)
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On the Future of Work in NYC:
- “How Midtown has been so hollowed out. And that isn’t just about those office jobs...but also the jobs that then rely on those jobs...what the future of work looks like and how city government is trying to talk with business leaders, work with small businesses, and do so many other things to try to make sure that jobs return...” – Ben Max (14:38)
Timestamps for Important Segments
- 00:34 – The Economy’s Interdisciplinary Impact
- 05:37 – Historic and Pandemic-driven Shifts in Employment
- 07:06 – Constraints on City Power and External Factors
- 09:18 – Disparities Between Job Data and Poverty Rates
- 10:47 – The Informal Economy and Hidden Unemployment
- 12:01 – City Levers: Tax, Spending, and Regulation
- 13:41 – Austerity vs. Reinvestment Dilemma
- 14:38 – The Office Sector, Midtown, and Services Ripple Effect
Key Questions for Candidates
- Has COVID fundamentally changed the city’s economic landscape (offices, tourism, retail, residential patterns)?
- How will candidates leverage city policy (taxes, land use, capital spending) to create quality jobs?
- What is the role of CUNY and education in economic growth and recovery?
- How can the city address poverty and inequality while fostering recovery?
- Should the city aim to return to pre-pandemic economic “normal,” or build something different?
Closing
The episode emphasizes that economic recovery and transformation are central to the 2021 NYC elections. Candidates must present coherent visions not only for restoration but also for an economy that is fairer and more resilient for all New Yorkers.