The David Lin Report America's Wealthiest City Is Going Bankrupt, Economist Reveals How | Steve Hanke
Nov 22, 2025
Steve Hanke, a Professor of Applied Economics at Johns Hopkins University, dives into the economic risks facing New York City. He warns that ambitious policies like free transit and a $30 minimum wage could lead the city to bankruptcy. Hanke links inflation and ineffective municipal plans to growing wealth disparities while critiquing rent freezes and proposed public housing projects. He draws parallels with historical examples of socialism, emphasizing the importance of market-driven solutions for fiscal stability.
AI Snips
Chapters
Books
Transcript
Episode notes
Inflation Drove Affordability Issues
- The Fed's post-2020 money expansion inflated asset prices and widened wealth gaps.
- Steve Hanke links rising housing and food costs to monetary inflation rather than local policies.
City Budget Is Already Strained
- New York faces multi‑billion dollar structural budget gaps in coming years.
- Hanke warns expansive city programs will deepen deficits and fiscal vulnerability.
Don't Eliminate Fares Without Funding
- Avoid making buses free without funding because fare elimination costs about $1 billion.
- Prioritize a safe, reliable transit system rather than unfunded fare-free policies.
