The Empire Page

Governor Paterson has stated that we should be happy that Wall Streeters are getting large bonuses, because the State needs the money. In the short run he is correct. New York is facing a catastrohic budget shortfall and the tax revenues brought in by Wall Street bonuses are essential revenue to help our State. The Governor is wrong that we should not be critical of the excesses  Wall Street has shown.  The long term question is that the furor caused by the excessive bonuses shows we have become way too dependent on Wall Street.  In the financial good times, Wall Street leaders managed other people’s money to pay their own bonuses and the result was our financial meltdown.  Criticism for this behavior is well deserved and the recent decisions to continue to pay record bonuses after federal bailouts shows that this bad behavior continues. Wall Street excesses have resulted in a record gap between the richest New Yorkers and all others as too much money is concentrated at the top of the income scale.

So yes, as the  Governor says, we need the money and let us not look a gift horse in the mouth. Times are tough and we should take the money where we can get it. You can’t say all this money is deserved and the fact that we need the money so much shows how dependent we have become on Wall Street. Our economy needs to diversify so we can stop the Wall Street dependence. New industries that develop businesses throughout the state need to be actively encouraged. We should not need to worry that if Wall Street is investigated that our whole economic base is threatened. Tax and economic policies have long catered to the Finance and Real Estate industries, thinking they would carry us forward. This year they are threatening to take us down with them.