Tuesday, November 27, 2018
TKC QUESTION: HOW WILL KANSAS CITY COPE WITH PREZ TRUMP RECESSION?!?!
Harsh economic times hit every White House Administration and now it looks like Prez Trump will confront a U.S. economic downturn sooner rather than later. Meanwhile, Kansas City government, media and biz are typically slow when dealing with financial reality and a recession has the potential to create local havoc.
To wit . . .
IS KANSAS CITY PREPARED FOR THE PREZ TRUMP RECESSION??!?!
Two areas stand out as exceptionally vulnerable to any real economic difficultly . . .
Developer Subsidy Switcheroo???
KCMO has been giving away tax breaks and cash to speculative deals for almost a decade. These projects ramped up during good times but now a debt and money crunch will leave this town holding the bill for a great deal of far-too-optimistic schemes. A recession requires a bit more conservative approach with subsidies and it's unlikely 12th & Oak will be able to switch gears.
Housing Hot Mess Cont'd
As an example of politicos late to the game as always, KCMO is now slap fighting over housing policy at the end of a real estate boom. Current checks & balances threaten to discourage development in blighted districts and, in fact, as an economic downtown takes hold, policies inspired by social justice advocates will mostly work to enforce poverty on blighted communities.
While residents can't expect City Hall to understand complicated economic lessons, at the very least it's important to recognize reality whilst politicos attempt to blame and politicize money growing tighter and/or more scarce.
Check the links:
The Week: How to spot the next recession
CNBC: Economists see the Trump economy slowing drastically next year before a possible recession in 2020
YF: There's a 30% chance of a recession in 2020, Morgan Stanley says
The Street: Recession Could Hit a Vulnerable U.S. Economy in 2019
Atlantic: Is a Recession Coming?
The Next Recession Is Coming: Here's How To Protect Your Portfolio
Seeking Alpha: China Is In A Recession
Harvard Biz Review: What Sales Teams Should Do to Prepare for the Next Recession
You decide . . .