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Will NYC Go Bankrupt?

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2 years ago

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Mass unemployment, colossal bankruptcies, and a shattered tourism industry have ravaged New York City during the coronavirus pandemic. In January 2021, Governor Andrew Cuomo proposed raising taxes on the wealthy, while cutting Medicaid and school spending to balance the multi-billion dollar budget deficit. Opponents say tax hikes could lead to a mass exodus of the wealthy New Yorkers who fund a large portion of the city’s revenue. Others say that the crisis has exasperated existing inequalities and cutting social services will only hurt those most affected.

Concern over New York City’s future is brewing as state lawmakers consider drastic measures that could hinder the city’s recovery from the Covid-19 pandemic.

New York Governor Andrew Cuomo proposed in January raising taxes on the wealthy and cutting Medicaid and school spending at the state level. Conservatives argue that higher taxes could lead to wealthy taxpayers leaving the city, while progressives say reducing services could have a long-lasting impact on New York City.

New York City is highly dependent on its wealthy population. In 2018, the top 1% of earners made up 42.5% of total income tax collected by the city, according to the Independent Budget Office of New York City. That was $5 billion in revenue for the city.

“If they leave, there’s a huge fiscal crisis,” said Jared Walczak, vice president of state projects with the Center for State Tax Policy at the Tax Foundation. “How do you pay for all of these services? That affects everyone. The people who stay either have a higher tax burden or will receive fewer government services.”

“There’s a real question that policymakers need to address right now. How do you keep these people here? How do you make sure that post pandemic, they want to come back?” Walczak said.

But Kim Phillips-Fein, a historian at New York University, said cuts to services could hurt the city in the long run. She noted austerity measures taken during the 1970s fiscal crisis caused increasing inequalities that have haunted the city ever since.

Cornell University assistant professor Cristobal Young also pointed out that only a small fraction of wealthy people leave their states for tax purposes.

Watch the video above for more on New York’s situation and its potential road to recovery.

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How China came to dominate the global EV factory boom

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2 days ago

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July 14, 2026

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Chinese automakers have made over $100 billion in EV and battery investments abroad since 2019, according to Atlas Public Policy, far outpacing US firms. CNBC’s Robert Ferris has more on how the Asian country got here and why.

Chapter 1: What is happening – 01:18
Chapter 2: Why this matters – 03:05
Chapter 3: The future – 06:00

CREDITS:
Produced by: Robert Ferris
Shot and edited by:
Additional Editing: Darren Geeter
Animation: Jason Reginato, Emily Park
Senior Managing Producer: Tala Hadavi
Additional Footage: Getty Images, AP

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Cisco Buys AppDynamics One Day Before Its IPO | Tech Bet | CNBC

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5 days ago

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July 12, 2026

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Cisco buys tech startup AppDynamics one day before its IPO. Here’s what to expect next.
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AI’s Next Race: Cost, Control, and Compute

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5 days ago

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July 11, 2026

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The AI race is shifting from who has the biggest model to who can run, control and deploy AI most effectively.

Perplexity CEO Aravind Srinivas joins to discuss the company’s new orchestrator model, why he’s building on open-source Chinese AI, and his argument that “token value per watt” may decide the next phase of competition.

Then, Benchmark general partner Peter Fenton and Ollama CEO Jeff Morgan discuss the rise of open models, why enterprises are increasingly running models they can download and control, and what Ollama’s growth says about where the AI ecosystem is heading.

Together, the conversations get at one big question: in AI’s next race, will the winners be defined less by model access and more by cost, control and compute?

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How Warsh’s Task Forces Will Reshape The Federal Reserve

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7 days ago

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July 10, 2026

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Federal Reserve Chairman Kevin Warsh is floating major revisions to the central bank’s approach to assets, productivity, data, inflation and public communications. To achieve this, Warsh has created 5 “task forces” while soliciting interest from individuals outside of the Fed. This presents an opportunity for a small unelected group to influence the broader U.S. economy and value of U.S. dollars circulating globally. CNBC’s Matt Peterson reports.

Credits
Reporter: Matt Peterson
Produced and Edited by: Carlos Waters
Camera by: Charlotte Morabito
Animation: Jason Reginato
Senior Managing Producer: Shawn Baldwin
Additional Footage: Getty Images

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How AI Super PACs Are Shaping The Midterms

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7 days ago

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July 10, 2026

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Members of Congress are debating the future of AI regulation at a pivotal moment for the technology. In an effort to influence the next class of lawmakers, dueling super PACs backed by AI giants like OpenAI and Anthropic are pouring millions of dollars into the midterm elections. CNBC’s Emily Wilkins breaks it down.

CREDITS:
Reporter
Emily Wilkins
Produced by
Macklin Fishman
Additional Production
Karen James Sloan
Shot by
Mickey Todiwala, Fred Soffa
Edited by
Andrea Miller, Darren Geeter
Animation
Jason Reginato, Emily Park
Senior Managing Producer
Shawn Baldwin
Additional Footage
Getty Images

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