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Escape From New York

by Kerry Lutz
Financial Survival Network

Screen Shot 2017-04-10 at 11.29.45 AMA recent article in the New York Post showed that people are fleeing the New York State at an alarming rate. “More than 1 million people moved out of the New York area to other parts of the country since 2010, a rate of 4.4 percent — the highest negative net migration rate among the nation’s large population centers, US Census records show.” I am proud to be one of those people. I moved down to Florida in 2012 and haven’t looked back. Leaving New York was one of the happiest moments of my life. The Post continues, “Americans have been increasingly relocating from the eastern US and the Rust Belt to cities in Florida, Texas and the Northwest.”

But this only tells half the story. New York State’s top personal income tax rate is a whopping 8.82%. If you’re unfortunate enough to live in New York City, you could be forking over another 4% of your income, just for the privilege. And what do you get in return, rotten roads – among the country’s worst, one of the most generous welfare systems of almost any state, a medicaid system that’s out of control and systemic corruption to the core.

Florida is by no means a panacea. While it has among the best weather and highways in the nation, its schools are abysmal, corruption is rampant and governmental incompetence is staggering. The difference is that New York has a $153 billion annual budget versus Florida’s $83.5 billion. As humor writer Dave Barry says, “We’re only paying half for the same incompetence and corruption.” What a bargain.

Thanks to half a century’s unbridled socialism, New York is on the brink of insolvency. It’s pension funds are seriously underfunded. It’s union pandering ways means that everything costs twice as much than elsewhere in the nation. It’s pandering politicians are never at a loss to create new money draining programs that will help further sink the state’s finances. It’s in complete denial over this sorry state of affairs. Governor Andrew Cuomo is trying to outdo his father Mario’s socialist legacy. He’s going to out Bernie, Bernie Sanders.

On top of  all this, NY has just passed a law providing for “free” college tuition for all New Yorkers enrolling in state, city universities and colleges, for those families making less than $125,000 per year. They just have to agree to live and work in the state upon graduation. The scholarships don’t include room, board or books. Tuition in SUNY runs $6470 per annum. The state is guessing that this new program won’t cost more than $153 million a year.

It all sounds great. Why should anyone pay for college, after all it’s a human right, like high speed internet, smartphones and cable tv. But the state is grossly underestimating the true cost of this program. Those collecting welfare in other states have probably considered a moving to New York, lured by it’s more generous benefits. Free college is yet another incentive to cross state lines. While there is some promised aid to private colleges, the State is providing a nearly irresistible incentive for students to attend there. The nearly $26,000 savings on a 4 year degree will dramatically increase the demand for the better state schools.

So the cost is going to be way beyond current estimates. In addition, it’s sending future college students a bad message about higher education. It’s incentivizing people to attend college who will receive the least benefit. The lower the barrier to entry, the more entrants there will be. The higher the subsidy, the great the likelihood of shortages. This is exactly what’s going to happen to New York’s State University. Demand will increase greatly, but the capacity of it’s schools won’t.  Therefore, the students with better grades will wind up with higher acceptance rates and those with lower grades will be rejected. The net result will be less minorities and poor attending college. It will turn into another entitlement for the middle class. In future years, expect the outlays to increase geometrically, while those who could benefit most from a college degree will be frozen out.

When you’re dealing with Socialism failure is always will be the guaranteed result.

Regards,
~Kerry Lutz.

9 comments to Escape From New York

  • George West

    Great read. I moved from the Malibu area to Missoula Montana. Its still a well-kept secret. No sales tax. One-time lifetime registration on cars once they are 10 years old. No traffic. Clean air. Open carry guns anywhere except banks/schools K-12. $5 parking tickets. All buses are free in Missoula and some other cities. Full coverage on my Benz is $270 per year. And – I’m taking a risk here only because of crime correlation facts – 99.99% white like the snow.

  • daddy warbucks

    Live or work in New York, Long island or New Jersey?

    Can you say ironic, the talking heads in NYC propagating false narratives could be enabling their own destruction if this actually plays out?

    Obama: Nuclear Blast In NYC Bigger Concern Than Russia
    https://youtu.be/wddZFn-V7iA

    Go to minute 29:30, then 38:00 then 48:00:
    AWESOME Deep State Follow-up Vid by Clay / FaithfulBerean
    https://youtu.be/pXnchsTfziU

  • Glen Hamner

    Good article. I took things a Little further. I lived in Florida for over 40 years and watched with horror as the State deteriorated. Fed up, I moved out of the country apon retirement. I now happily live in Republic of Panama. I haven’t been back to Florida in 8 years nor will I return. Florida has been destroyed by people like you, Mr Lutz, who move to Florida, to escape other area’s that have been ruined. Good riddance Florida.

    • citizen49a

      You could have gone north like I did. No yankees up here close to the Georgia line.

      • Notice I didn’t say it was a panacea. Everything is relative. I spent some time in Panama, contemplating a move. No thank you very much. Panama City is a nightmare. Busted up sidewalks and extremely poor quality of infrastructure, kind of reminded me of New York. It’s a police state as well. Thanks but no thanks. I didn’t ruin Florida, the illegals have, the Mareille Boat lift etc. How’s your second amendment rights holding up there? But thanks for being on the site and I wish you the best.

  • Nikalus Hostettler

    We have no socialism just as much as we have no capitalism neither. Socialism isn’t about entitlements not any differently in that Capitalism isn’t about handouts, stimulus packages, funding start-ups (look no further than the solar fiasco), etc. etc. But this is what everybody wants expecting someone else to pay for it. Socialism fails quickly when it becomes non-sustainable because it is based on tax-money or some other easy money (Venezuela and oil), where as Capitalism always benefited from some sort of colonialism.

    Systems always fail for the same reason: An elite who starts to look for its own interests neglecting the needs of the country, and refusal to adjust to economic sustainability. It is basically the same as someone stated, can’t remember who it was: Countries/societies grow when focus is no production (forward looking, focus on social investments) and decline when focus is on capital (stagnating, preserving a status quo instead on socialistic investments).

    Ever wondered why there is so much demonizing of socialism in the US, and never mention that Sweden, the country that had the highest standard of living and in the average the richest citizens, but always banana republics that failed, like Venezuela? Those who have all the benefits are the ones who run the country and understand that their entitlements will go away if equally distributed – based on sustainability.

    The US always did great because of socialistic investments and/or made available for free to the public: Interstate system, GPS, Internet (we only pay to access it) to mention three.

  • Ky

    Kerry,
    I get your newsletter and enjoyed READING this article. Please consider transcripts of your other articles. I am a skimmer and just can’t bring myself to listen to podcasts.
    Thanks…

  • Gavin Loban

    Kerry, Why do you keep defending Trump? Why are you supportive of him? He is not draining the swamp. He is part of the swamp and always has been. He just knows how to play the American people, including people like you. Why live in denial and believe Trump is the Messiah? He is NOT. If he was, guaranteed he would not have been allowed to run. Look at what he’s doing in less than 100 days – targeting and signaling hostility, fueling it toward Syria, Iran, North Korea, Somalia involvement, Afghanistan’s MOAB. He played the American people, he played you and he is no different. He’s just a VERY good actor and always has been a very good politician. Your support of Trump (who is no less of a shark than Hillary. Trump = Hillary) makes me believe you are not as insightful about the realities and ways of this world order which directly impact the financial markets and dynamics around the world. It is poor judgment on your part Kerry.

  • Lisa

    Perfect summary of NY! Cuomo doesn’t care if the college plan doesn’t work. It’s just a notch in his belt in the run for president. It looks great to the uninformed. Government and incopetance are synonymous in this state and no one listens to the competent ones like DeFrancisco. They just continue to drive their tax base out.

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