Friday, August 15, 2014

Atlantic City, New Jersey, A Political Calamity from the Start

New Jersey continues its multi-decade decline taking center stage this next week in Atlantic City as Governor Chris Christie takes time off from his Presidential Campaign to convene a summit to discuss the future of the City.

Crony Capitalism on display for decades, from the very beginning a government rolling calamity of failure and now a city on the brink of collapse as 3 of it's 11 casinos are set to close down next month. Another shockingly predictable calamity in the 45 year history of New Jersey's Casino industry.

Gambling In New Jersey Gets its Start 

A colorful beginning back in the days when Hugh Hefner invested a fortune in the Northern New Jersey mountain town of Vernon to hold the first Casino. Hefner and his Playboy Club proved the folly of the "build it and they will come argument", he built it and they went to Atlantic City. last time I was there it still sat - virtually empty as it was on the day it opened. Imagine a casino lobby with no casino stuff... Frisbee golf comes to mind last I saw it. They threw big parties in the disco Days of the 80'sbut the concept was doomed without the gambling revenue.

New Jersey is following the folly of Greece in that it focuses on Tourism, a low job value, "high tax revenue" Economic Strategy that failed the people of Greece miserably and is failing New Jersey too.  

Since the beginning New Jersey's efforts to rely on gambling as a source of economic value and tax revenue have been a damaging factor to New Jersey and it's people. Atlantic City never lived up to any of the projections over the years. So much was invested, both the tax payers money and the very spirit of the community.

The soul of the people were distracted from making the products that the world would want to buy to instead making systems to promote moral diversions and to separate retirees and drunks from their pensions and pay. They built a cycle of decay. Recent warnings from credit agencies concerning the Cities General Obligation bonds seems a bit late to the party. Today, Atlantic City is a testament to the cronyism of New Jersey's culture. A culture that young people should step up and take notice of.

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