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June 2, 2009
Breaking down the AY fiscal analysis: why if you follow NYC EDC in your personal economics you could go to jail
Atlantic Yards Report
In this must-read entry, Norman Oder applies NYC EDC's "analysis" method to his own financial situation, and likes the results.
So let's talk "economic and fiscal impact analysis." That was the exercise by which the New York City Economic Development Corporation (NYC EDC) concluded that Atlantic Yards would bring more than half a billion dollars in revenue to the city over 30 years, a figure touted enthusiastically by NYC EDC president Seth Pinsky at Friday's AY oversight hearing.
...To NYC EDC, "economic and fiscal impact analysis" concerns revenue you take in. That's it. No costs, no subsidies.
A personal example
OK, I have just conducted an "economic and fiscal impact analysis" regarding my personal future revenue stream. After 20 years, I conclude, I will easily become a millionaire.
Yippee!
Oops--I forgot to factor in rent, food, and tons of other things, including taxes. If I don't pay taxes, well, I go to jail.
It renders my "economic and fiscal impact analysis" slightly flawed.
Didn't this kind of shoddy math lead to our economic meltdown?
NoLandGrab: While Oder's approach is humorous, the implications are certainly no laughing matter. He outlines a number of deep flaws in the EDC's alleged "analysis," which clearly seems designed to make the Atlantic Yards project look fiscally, and misleadingly, attractive.
Seems to us that a key duty (perhaps the most significant duty) of the President of the NYC EDC is to deliver the result the Mayor wants, truth be damned.
Posted by eric at June 2, 2009 10:41 AM