From the Record:
New Jersey’s suburban economy’s existential crisis
A new study suggests that New Jersey could expand its economy by $150 billion and create a quarter-million new jobs over the next decade by making a number of policy changes regarding business operations in the state. The report by consulting firm McKinsey says that the state needs to nurture young businesses, improve roads and mass transit options and better tailor incentives to promote growth.
This is correct as far as it goes, but the report barely scratches the surface on why New Jersey is struggling to gain younger businesses and misses a looming economic crisis. The why is best explained by Rutgers professors James Hughes and Joseph Seneca. They write about how New Jersey successfully evolved from an urban manufacturing-based economy to one that made the state an economic success story based on suburbanized information and research-driven employment.
“The baby boom will soon be yesterday’s workforce. Tomorrow’s workforce will be dominated by a new, expansive generation… such young creatives… currently do not find the car-culture suburbs in which they grew up an attractive place to live, work and play,” according to Hughes and Seneca.
“Suddenly, New Jersey’s greatest core advantage in the late twentieth century — a suburban-dominated, automobile dependent economy and lifestyle — is now regarded as a disadvantage,” they add.
New Jersey is the most densely populated state in the nation. It’s also the most suburban U.S. state, which means plenty of malls and office parks. Not too long ago these properties helped make New Jersey the most prosperous of the 50 states.
That is no longer the case today.
In fact, too many New Jersey suburban towns – most of New Jersey – are facing a perfect storm that could lead to significant property tax increases unless mayors and state leaders take action soon.
Here’s the reality: Suburban office parks are going the way of dinosaurs unless they are reimagined. Left unchanged, each of these formerly hefty taxpayers are going to be a drain resulting in tax reductions that will have to be absorbed by homeowners.
In Bergen County, many towns are struggling with the best way to replace these office park dinosaurs. Too often, municipal leaders have chosen to hope the these office parks will again fill with white-collar employees whose property owners pay significant taxes and demand little in the way of local services. That time has come and gone and local leaders cannot wish the current trends away.
On top of that is the lack of affordability of suburban housing for the middle-skilled worker the McKinsey report describes. More than a quarter-million residents left New Jersey in 2015 as our state ranked last in income growth and had the highest property taxes. Simply stated, to remain an economically strong state New Jersey must make housing more within reach of all worker, especially the middle-skilled ones.
tGiFoist
So google now lines up with the mob and the left has become the bastion of science deniers. My how the worm has turned.
Anyone Disagree?
http://www.slate.com/blogs/moneybox/2017/08/01/a_small_but_soul_crushing_illustration_of_donald_trump_s_utter_economic.html
@alexnazaryan
“Gorka knows virtually nothing.”
I am Machiavellian about the whole thing fla I am Machiavellian about the whole thing
Flabmax
What you consistently failed to grab is that your attitude is only going to help that guy get reelected in 2020.
The Dictaphone on the iPhone is a beautiful thing. Ugh
@PabloTorre
Threatening nuclear war on Twitter feels like a terms of service violation
Everyone keeps writing about the office parks. What are they going to do with all the retail space when that is no longer relevant? Only room enough for so many entertainment and restaurant malls. What comes next?
30 yr,
They make great nursing homes. Parking for visitors. Easy access to highways for trip busing. Handicap/wheelchair accessible with elevators, escalators. Room inside for urgent care. Easy to place supermarket/food delivery inside, convenient for large truck deliveries. Electrical systems high capacity already in place. Plumbing will need some work, however.
Lol…Blue, they love teachers. 13% increase coming your way. American workers work for the health insurance industry. Got damn, criminal to not have a single payer in place and forced to be a working slave for the heath industry. Something has to give.
http://nj1015.com/healthcare-premiums-for-nj-teachers-to-increase-in-2018/
What’s going to be interesting is which nj towns decide to become middle class again. Meaning, tear up their zoning laws, and allow for middle class housing in the form of high rises. Problem in northeast nj, everyone is rich, and no one wants that in their town. This is what the headline for this article should have stated. Affordable middle class housing has been taken out by the rich.
30 year realtor says:
August 11, 2017 at 9:01 am
Everyone keeps writing about the office parks. What are they going to do with all the retail space when that is no longer relevant? Only room enough for so many entertainment and restaurant malls. What comes next?
Comedy Gold.
https://twitter.com/DPRK_News?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
Lol…Blue, they love teachers. 13% increase coming your way. American workers work for the health insurance industry. Got damn, criminal to not have a single payer in place and forced to be a working slave for the heath industry. Something has to give.
This is why Trump was right when he said we need to remove this imaginary state lines for insurance companies. Horizon has a near monopoly and they are abusing the taxpayer.
Chi,
Agreed. Dems need to find their upper class twit of the year by 2018.
Wait a minute. The article said NJ was dead last in wage growth.
Pumpkin you better let them know about all the pant-up wage growth!!!
How much did AC, south jersey, and west jersey play a role in the data? Northeast nj is getting it, but god bless those other locations in the state.
Troll Feeder says:
August 11, 2017 at 10:30 am
Wait a minute. The article said NJ was dead last in wage growth.
Pumpkin you better let them know about all the pant-up wage growth!!!
Pumpkin zoning or otherwise you aren’t getting middle class housing, it’s not where the money is made. The municipalities you are talking about lack the infrastructure to support the building of high rises, add that to the construction cost and it should be apparent high rises will be upper class housing. It is uneconomic to build high rises unless the housing cost is sufficiently high, high density stick built buildings 5 stories or less seems to be the most profitable thing to build. NJ has a big future in logistics and distribution.
“Northeast NJ is getting it”
Sound argument, based on hard data.
I concede!
All hail the orange “economic” genius. Per Slate
Trump is trying to explain that he thinks the United States is growing too slowly compared with the rest of the world, and therefore we need to cut our corporate tax rate to 15 percent. I’ve bolded the key part.
Donald:
“So I’ll call, like, major—major countries, and I’ll be dealing with the prime minister or the president. And I’ll say, how are you doing? Oh, don’t know, don’t know, not well, Mr. President, not well. I said, well, what’s the problem? Oh, GDP 9 percent, not well. And I’m saying to myself, here we are at like 1 percent, dying, and they’re at 9 percent and they’re unhappy. So, you know, and these are like countries, you know, fairly large, like 300 million people. You know, a lot of people say—they say, well, but the United States is large. And then you call places like Malaysia, Indonesia, and you say, you know, how many people do you have? And it’s pretty amazing how many people they have. So China’s going to be at 7 or 8 percent, and they have a billion-five, right? So we should do really well.”
But in order to do that – you know, it’s tax reform, but it’s a big tax cut. But it’s simplification, it’s reform, and it’s a big tax cut, 15 –
At some point, it appears Donald Trump heard somebody say that the United States cannot grow as fast as China or Malaysia because we have a “large” economy. No doubt, what they meant is that the U.S. is a highly developed, rich nation and therefore can’t expand as quickly as developing countries that can still reap large gains from taking basic steps to improve their living standards. But Trump did not understand it that way. He apparently thought that when whoever he was listening to said “large,” they were talking about population. Therefore, in his mind, if China grows at nearly 7 percent per year with its 1.4 billion people, the U.S. should be able to do it too
Interesting, thanks for the lesson. Was not aware of the cost of infrastructure when it comes to these types of buildings. So the three story 300 unit buildings will become the norm for most new construction.
JCer says:
August 11, 2017 at 10:58 am
Pumpkin zoning or otherwise you aren’t getting middle class housing, it’s not where the money is made. The municipalities you are talking about lack the infrastructure to support the building of high rises, add that to the construction cost and it should be apparent high rises will be upper class housing. It is uneconomic to build high rises unless the housing cost is sufficiently high, high density stick built buildings 5 stories or less seems to be the most profitable thing to build. NJ has a big future in logistics and distribution.
Just look at the rental costs and how they have been rising in northeast nj, that’s all the info you need to draw the conclusion. Rents aren’t rising in ac like that, sure as hell not in south or west jersey.
Troll Feeder says:
August 11, 2017 at 11:09 am
“Northeast NJ is getting it”
Sound argument, based on hard data.
I concede!
Simply mind blowing, and this guy is a billionaire? Wtf? This is what a genius business mind does with basic math? Some genius. Overpaid con artist. So many like him in the billionaire class, that’s the sad part.
“He apparently thought that when whoever he was listening to said “large,” they were talking about population. Therefore, in his mind, if China grows at nearly 7 percent per year with its 1.4 billion people, the U.S. should be able to do it too”
We’ve continuously elected a government that thinks it can grow at a faster rate than the economy. The same people who criticize the current administration have no issues with that, in fact, more often want to grow the government even more.
“…forced to be a working slave for the heath industry. Something has to give.”
Like the idea that healthcare is free for consumers?
I would argue maintenance of your health is more important than maintenance of your car and home. Why should an individual not be paying at least those amounts for their health?
Why should your health maintenance be paid for someone else?
paid for *by* someone else
USA Today “Everyone Will Have a Microchip Implant in Them Someday”
I’d reckon over half the Snowflakes ages 18 to 29 would willingly get a microchip implant if you offered them say the next generation iPhone for free and that had extra features or apps that only worked with said implant.
Things are GREAT AGAIN In the South
A planned demonstration by white nationalist extremists in Charlottesville, Virginia, has been described as the “largest hate-gathering of its kind in decades in the United States” by a monitoring group.
The Unite the Right gathering of extremists protesting the removal of a Confederate-era statue will draw alt-right groups, neo-Confederates, Ku Klux Klan members and neo-Nazis, all of whom have been “emboldened by the Trump presidency,” according to nonprofit civil rights group the Southern Poverty Law Center (SPLC).
600 new apartments on the way in Hackensack just south of Kinderkamach road on the site of the old Bergen county facility. These will 3 and more stories high. Construction has already started. New Milford on the way with 300. And Washington township just reached an agreement with developers for 300.
Can’t wait for the stock market to crack so we can get back to rampant speculation in precious metals. That was fun.
Hope everyone has gotten value out of their ingots.
Grim please unmoderated my comment. Don’t know what triggered it.
Shomer Shabbos
The robots are coming!
https://www.ft.com/content/16b8ffb6-7161-11e7-aca6-c6bd07df1a3c
Machiavellian?
So what you are saying is that you don’t care if T burns the house to the ground as long as you can make a buck of the back of it. And its MY attitude that’s the issue here.
Mkay!
Christie helps displaced Progresso plant workers
http://www.njtvonline.org/news/uncategorized/christie-offers-new-jobs-progresso-plant-workers/
http://www.nj.com/news/index.ssf/2017/08/ihop_to_close_25_stores_by_end_of_the_year_reports.html#incart_river_home
Applebees closing more than 100 locations, IHOP closing 20 based on a dip in sales. Again, market top is here.
I would like to disclose that I have never eaten at either establishment.
Great job by the staff to get pictures of both restaurants in a single picture…
@BillKristol
American blood was shed to save the world from the monsters these creeps admire–whom we can be proud did not spring from American soil.
@letsgomathias
American blood was shed to save the world from the monsters these creeps admire–whom we can be proud did not spring from American soil.
@SpeakerRyan
The views fueling the spectacle in Charlottesville are repugnant. Let it only serve to unite Americans against this kind of vile bigotry.
puzzy,
I presume your against the resist movement as well. Right? I said, right? You know the terrorist organization known as Antifa. You know, the group that attacks conservatives with nails sticking out of the end of bats, urine bombs, hurling bicycle locks, to name a few.
your = you’re
1:02. Ooooooh I’m a Conservative and a victim…waaaaaaah
Ex-jersey,
Who’s the victim, d0uchebag? It’s your side that whines and cries like toddlers. Go play with your crayons, assh0le. You’re side will get slaughtered when bullets fly.
Fast Eddie.
What you forget is that when that moment (bullets flying/constitution dead/maiden’s tale world) the side you seem to side with won’t have a chance. That’s the moment Putin, Communist China, the AQ & ISIS of the world would make their move too.
What you forget is that when that moment (bullets flying/constitution dead/maiden’s tale world) the side you seem to side with won’t have a chance. That’s the moment Putin, Communist China, the AQ & ISIS of the world would make their move too.
Maybe we should go back to bombing drills in school since the Russians are coming.
“As a result we could not stand to hear the Utopian talk of the boomers as we cannot stand to hear the Utopian talk of the millennials. We know that most people are rotten to the core, but some are good, and proceed accordingly.”
Why Generation X Might Be Our Last, Best Hope – Vanity Fair
https://apple.news/Ao4TlqCMQQsCRQ1WCmL1IEw
BRT
Wolverines!!!!
Maybe we should go back to bombing drills in school since the Russians are coming.
5:40 Is it in vogue now for puffy cube dwellers to threaten violence against other Americans? I think you over estimate your cardio Gary.
Blue- not sure I would look at Applebee’s as a market top or more as a passing of a generation. Applebees TGIF Charlie browns chill are the beef stake Charlie’s when we were growing up. Diets have changed in the last five years and people want bright clean spaces to eat not dirty greasy dark rooms. The lunch crowd wants seasonal food with artisan ingredients. Hence the Panera /chipotle springing up everywhere. they want choice in how their food is prepared. They want value but are willing to pay for quality. Or perceived quality. No one goes out for beers at lunch anymore as well especially the millennial. I remember the boomers. They knew how to do a Martini lunch on the low mans corporate card