The city of Chicago usually ranks at the top for its economic potential among major cities, not just in the United States but also, across the world. However, the reality has been a poor reflection of expectations. In 2013, World Business Chicago identified over 700 new & rapidly expanding facilities that were underdeveloped or unutilized in the metro area.
This is a significant figure, as it represents a total of 35 million square feet of commercial space and over $6 billion in potential economic development activity. Chicago also ranks as one of the top 20 snobbiest cities in the world, quite a surprise considering it is still one of the cities facing the brunt of the Great Recession when the actions of Barnie Frank, some bankers on Wall Street, and Alan Greenspan over the preceding few years came to fruition.
Another Year of Quashed Economic Hopes in Chicago
This year started as another year of great expectations and hopes for Chicago, and as it closes, Chicago had greater dismal news than good. The following are a few interesting facts about what is being perceived as one of the most economically crippled cities in the country because of liberal policies which are anti-business. The following points indicate the continued fall of Chicago.
Since 2012, the median household income Chicago metro area has barely changed.
The Chicago metro area "High Net Worth" stakeholders and investors are optimistic about the city's future, but also pessimistic about the dependability of local start-ups, their business owners, and the overall state of Illinois.
As of 2014, the Chicago metro area is home to over 1.3 million people living below the nation's poverty line. This is a result of high taxes.
According to the National Activity Index, a monthly index drafted to assess the overall economic activity and related inflationary pressures on a national level, Chicago’s federal reserves fell significantly between July-August, 2014.
On the positive side, Illinois' unemployment rate has dropped considerably from last year. However, the decrease actually came due to fewer job seekers.
In an attempt to improve the state’s economic conditions, Illinois' government has voted to increase the minimum wage to $10 per hour and to increase the millionaire tax by 3 percent. Anyone who understands business will know this will just crush small businesses and prevent more startups. It will push rich folks out of the state. These types of goofy tax increases are irrational and job killers.
Chicago has a few mayoral candidates vouch for the revival of a daily commuter tax. This is another socialist idea that has job destruction written all over it.
Coincidently, Chicago, with its rich and comparatively affordable alcohol industry, ranks as the best place to spend money at bars at in this country! This is of course if you have any money left over after all the taxes. Really, this has nothing to do with creating economic prosperity for thousands of people.
Statistics have also revealed that the long-term economic prospects are highly demographic in nature, appealing only to those who are in a younger age group.
Southern Illinois Poised for Economic Expansion
The good news for Illinois is Bruce Raune. He is the new governor and a Republican. He has told everyone that he is about jobs and improving the economy. Illinois has also just legalized fracking. This is because there could be 300 billion barrels of oil in Illinois Basin's New Albany Shale Formation located in the southern part of the state. Chicago may still be crumbling while the southern part of Illinois could be soon on fire as North Dakota is now and will be for years to come.