During the depths of the financial crisis as Lehman collapsed and fears about another Great Depression spiked, nearly 200,000 Wall Street professionals lost their jobs. But that figure will likely pale in comparison to the broad-based economic destruction brought by the coronavirus, which will hammer virtually every industry and sector. To wit, in a presentation from NYC Comptroller Scott Stringer responding to Mayor de Blasio’s budget proposal for the coming fiscal year, Hizzoner’s anointed successor (Stringer is planning a run for mayor next year when Blaz gets term-limited out) revealed that the city will lose as many as 900,000 jobs – roughly 1 in 5 – as the fallout from the crisis worsens.
What’s worse: most of this destruction is expected to take place by the end of June. The worst-hit businesses include restaurants, hotels and, of course, retail. As Bloomberg points out, Stringer’s forecast is more dire than the mayor’s prediction last month that the city would lose more than half a million jobs over the first three quarters of the year.
Stringer warned that as de Blasio pushes to ramp up spending on social services, the city’s finances are in tatters thanks to an expected $3 billion shortfall in state funding. Stringer called on Blaz to cut $89.3 billion from his proposed budget.
Stringer also joined de Blasio’s call for more federal aid, arguing that New York contributes more to the federal budget than it gets back in aid.
Without a doubt, NYC is facing its “deepest recession” since the Great Depression, with much of the country’s job losses likely centered on the city, which also saw an outsize share of economic growth during the post-crisis recovery.
“We’re facing the deepest recession since the Great Depression, marked by historic and rapid job losses,” Stringer said in a statement. “In a crisis this severe, the federal government must step up and deliver relief to New York – the economic engine for the nation.”
Hopefully, New York can suckle up to the federal tit right next to California.