CNN Anchor GOES SCORCHED EARTH On Democrats As He ADMITS Blue Cities Are OUT OF CONTROL!
Quick Read
Summary
Takeaways
- ❖CNN is reportedly 'sounding the alarm' on blue states and cities struggling with affordability and disorder.
- ❖New York City has some of the highest combined income and corporate tax rates in the U.S., comparable to European nations offering universal services.
- ❖Los Angeles's homelessness budget of nearly $1 billion for FY25/26 has coincided with a significant increase in homelessness since 2015, with billions in prior funding untraceable.
- ❖The host argues that government subsidies, like New York's 5x increase in rental assistance spending, inadvertently drive up costs.
- ❖California has the highest cost of living in the nation, with its policies of high minimum wages and extensive social programs blamed for driving up overall expenses.
- ❖Governor Gavin Newsom's anti-oil stance is criticized for contributing to California's highest gas prices, despite his claims of fighting for affordability.
Insights
1CNN's Critical Stance on Blue Cities' Struggles
The host observes that even CNN is highlighting the struggles of 'blue states' and cities with issues like affordability, suggesting a growing recognition of these problems beyond conservative media. He frames this as an admission that Democratic policies are failing to deliver on their promises.
The host states, 'we got to talk about CNN sounding the alarm on these blue states and blue cities across the country that are struggling with the same things that Democrats claim that they have the answers to.'
2New York City's Extreme Taxation and Poor Return on Investment
New York City is presented as a prime example of a 'blue city' with exceptionally high tax rates that do not translate into commensurate public services. High earners face combined state and city income taxes reaching 14.776%, and businesses face a 17.44% combined corporate tax rate. The host contrasts this with European countries that offer universal healthcare and free education for similar tax burdens, while New Yorkers get '300 miles of sidewalk sheds.'
The host cites, 'For high earners, the combined state plus city income tax reaches 14.776%. Add federal taxes and the combined marginal rate can exceed 50%... The Citizens Budget Commission reports that New York City business activity faces the country's highest combined corporate tax rate, 17.44%.'
3Los Angeles's Ineffective Homelessness Spending
Despite massive budgets, Los Angeles has seen a significant increase in homelessness. The city's homelessness budget for FY25/26 totals $950 million, yet homelessness surged 9% countywide and 10% in the city in 2023, and 70-80% countywide since 2015. An audit found officials could not reliably track where $2.4 billion in prior funding went or what it achieved.
The host states, 'The city's homelessness budget for fiscal year 202526 totals about $950 million... homelessness was up 9% countywide and 10% in the city... and a 2024 AP account noted that homelessness has surged 70% countywide since 2015 and 80% in the city. An audit reviewed 2.4 billion in city homelessness funding and found that officials could not reliably track where it went or what it achieved.'
4Government Growth and Subsidies Drive Unaffordability
The host argues that government expansion and increased subsidies, intended to help, actually exacerbate unaffordability. He cites New York's rental assistance spending rising fivefold from $263 million in FY2020 to $1.34 billion in the most recent fiscal year, while housing costs worsened.
The host asserts, 'unaffordability is what happens when government becomes a machine that grows faster than the society it governs.' He adds, 'The city's rental assistance spending rose from 263 million in fiscal year 2020 to 1.34 billion in the most recently reported fiscal year. That is a five times increase in a handful of years. And housing costs only got worse.'
5California's Affordability Crisis Under Newsom's Leadership
California has the highest cost of living in the nation, with prices 11% higher than the national average. The host criticizes Governor Gavin Newsom's claims of economic success, pointing out that many residents, including Newsom's own in-laws, are leaving the state due to unaffordability. He argues that Newsom's policies, such as high minimum wages and extensive social programs, contribute to the state's high costs.
The host cites, 'California has the highest cost of living in the nation. The state's prices are 11% higher than the national average.' He also notes, 'his in-laws moved out of California, right? In 2020, they moved to Florida.'
6Newsom's Anti-Oil Stance vs. California Gas Prices
Governor Gavin Newsom publicly boasts about being 'big oil's number one enemy' and actively anti-oil. The host highlights the hypocrisy, noting that California has the highest gas prices in the country, which he attributes to Newsom's policies and stance, further contributing to the state's unaffordability.
In a clip, Gavin Newsom states, 'oil's big oil's number one enemy uh is is is me.' The host responds, 'Again, California's gas prices are the highest in the country. They're continuing to go up.'
Lessons
- Analyze the long-term fiscal impact of government subsidies and expanding social programs, as they may inadvertently drive up costs and exacerbate affordability issues.
- Scrutinize the effectiveness of large public spending initiatives, especially in areas like homelessness, by demanding transparent tracking of funds and measurable outcomes.
- Evaluate political leaders' claims about economic success against real-world indicators like cost of living, population migration, and local tax burdens, rather than just GDP or industry dominance.
Quotes
"New York is really a prime example of a problem Democrats seem unwilling to confront. Blue cities are out of control. Promising more, spending more, delivering less, and pushing off the fiscal problems to some future day."
"unaffordability is what happens when government becomes a machine that grows faster than the society it governs."
"oil's big oil's number one enemy uh is is is me."
Q&A
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