BusinessFlare Take

NEARLY HALF OF FLORIDIANS LIVING PAYCHECK TO PAYCHECK EXPOSES ECONOMIC DEVELOPMENT’S HOUSING POLICY FAILURES Florida’s affordability crisis represents the predictable outcome of economic development strategies that prioritize attracting wealthy transplants over maintaining livable communities for existing residents, creating an economy where teachers, nurses, and working families can no longer afford to live in the places they serve. The Miami Herald‘s report revealing 4 million Florida households struggling financially despite steady employment demonstrates how communities that chase high-net-worth relocations without addressing housing supply constraints end up destroying their own workforce foundation. Miami’s millionaire population nearly doubled during the pandemic while working families face severe cost burdens, with more than half of renters spending at least 30% of income on housing and nearly three in ten spending more than half their paychecks on shelter. This borderlines on malpractice: communities celebrated population and wealth growth while ignoring the systematic housing policies that would allow their essential workforce to remain economically viable. The Florida Chamber of Commerce warns that parents aged 20 to 45 may leave the state, taking their future workforce with them, but this exodus was entirely predictable for any community that prioritizes attracting millionaires over workforce housing policy. Economic development professionals should be asking: What good is attracting wealth if you cannot house the workers who make communities function? How many teachers, nurses, and service workers must we price out before admitting our development strategies are fundamentally flawed? Why do we celebrate population growth that destroys community affordability for existing residents?

Street Economics Insight

NEW YORK’S $150 MILLION REGIONAL COMPETITION REVEALS STATE-LEVEL ECONOMIC DEVELOPMENT STRATEGY GAPS Governor Hochul’s launch of the 2025 Regional Economic Development Council Initiative, featuring $150 million in ACHIEVE competition funding, exposes the fundamental problems with state-managed economic development: regions forced to compete against each other for resources instead of collaborating for collective growth. The program requires each of New York’s 10 Regional Councils to present “transformational regional initiatives” competing for up to $50 million in implementation funding, creating artificial scarcity where successful economic development in one region means less funding for neighboring communities facing similar challenges. This competitive structure reflects broader state economic development dysfunction: instead of addressing systematic barriers that prevent all regions from succeeding, states create tournaments where communities waste resources on grant writing and political lobbying rather than actual economic development implementation. The ACHIEVE program’s emphasis on “high-impact, shovel-ready projects” demonstrates how state funding priorities favor flashy infrastructure over the mundane regulatory reforms and administrative improvements that actually enable sustainable economic growth. Cities and counties should be demanding: Why must regions compete for development resources instead of receiving systematic support for removing barriers? How much time and money do we spend on state grant competitions versus actual economic development work? What would happen if states focused on fixing systematic problems rather than distributing prizes to lucky winners?

Drama Meter Reading – A Two-fer of 10 out of 10

SMALL TOWN CITY MANAGER CLAIMS COUNCILMEMBER VOTES AND ABSTENTIONS VIOLATE OATH OF OFFICE A dispute erupted in a small town when the city manager warned councilmembers that voting “no” or abstaining on certain agenda items constituted violations of their oath of office, creating a constitutional crisis that exposes fundamental misunderstandings about municipal governance and democratic processes. The manager’s interpretation suggests elected officials cannot exercise independent judgment without violating their sworn duties, a position that would effectively eliminate representative democracy at the local level and transform council meetings into rubber-stamp ceremonies for administrative recommendations. This represents a dangerous precedent where appointed administrators claim authority to dictate how elected officials must vote, inverting the basic principle that managers serve councils rather than controlling them. The incident highlights broader problems in municipal governance: inadequate training for both elected officials and administrators about their respective roles, unclear policies regarding voting procedures and ethical obligations, and insufficient legal guidance about constitutional limits on administrative authority over democratic processes. Does our city charter clearly define the respective roles of elected and appointed officials? Are councilmembers receiving proper legal guidance about their voting obligations? What mechanisms exist to resolve disputes between administrative and legislative functions without creating constitutional crises? Drama Meter: 10/10

HAMTRAMCK MICHIGAN EXPERIENCES TEXTBOOK MUNICIPAL MELTDOWN WITH MULTIPLE INVESTIGATIONS In their third appearance of the Drama Meter, Hamtramck, Michigan is experiencing a municipal governance disaster that represents everything wrong with small-city administration: the police chief suspended over misconduct allegations, the city manager placed on administrative leave, two council members under investigation for residency fraud, and four current plus one former council members facing election fraud charges for alleged absentee ballot manipulation. The Michigan Attorney General has requested a special prosecutor to investigate election crimes involving “a conspiracy to unlawfully obtain access to absentee ballots” where officials allegedly worked together to fill out ballots for naturalized citizens who had signed blank forms. This represents the perfect storm of municipal dysfunction: hiring officials without proper vetting, failing to establish clear performance standards, allowing election processes to become corrupted, and creating governance chaos that makes economic development impossible. The real lesson for other cities is prevention through systematic reform: every municipality should have transparent hiring processes, measurable performance standards for all officials, independent oversight of election procedures, and clear separation between administrative and political functions. Communities experiencing similar governance breakdowns discover that rebuilding institutional credibility takes years longer than maintaining functional systems, while businesses and residents flee locations where basic government competence cannot be guaranteed. Drama Meter: 10/10

Book Drop – Red Tape Empire

GOVERNMENT RED TAPE COSTS EUROPEAN ECONOMIES $154 BILLION ANNUALLY IN LOST GDP New research reveals that bureaucratic red tape costs seven European countries an average of $154 billion annually in lost GDP, perfectly illustrating the “Red Tape Empire” principle that regulatory complexity designed to protect citizens often creates more economic damage than the problems it attempts to solve. The study used innovative methodology to measure how excessive regulations impose “shadow taxes” on businesses, finding that companies dealing with bureaucratic obstacles exhibit higher potential returns on capital investment because regulatory barriers prevent them from expanding efficiently. This represents classic red tape economics: well-intentioned rules that become so complex and burdensome that compliance costs exceed any benefits, while creating opportunities for bureaucratic expansion and rent-seeking behavior that Kevin Crowder warns about in “Red Tape Empire.” Cities and counties: Which local permitting and approval processes create more obstacles than protection? How much time and money do businesses waste navigating municipal bureaucracy versus productive activities? What regulatory simplification would eliminate barriers without reducing necessary oversight? The European data proves that bureaucratic complexity has measurable economic costs, while communities that streamline regulatory processes without sacrificing essential protections gain competitive advantages over jurisdictions trapped in regulatory maze-building that satisfies bureaucrats but destroys business efficiency.

ECOSINT Signal

COLOMBIA’S M19 TERRORIST PRESIDENT THREATENS CONSTITUTIONAL REFERENDUM WHILE CHINA ADVANCES STRATEGIC PARTNERSHIPS President Gustavo Petro’s announcement of a constitutional referendum represents the culmination of a 35-year strategy by former M19 terrorists who never abandoned their revolutionary goals despite supposedly “demobilizing” in 1990, creating economic and security risks that extend far beyond Colombia’s borders. The referendum proposal coincides with China’s accelerating strategic advance in Colombia, leveraging economic partnerships and infrastructure investments to gain geopolitical influence in a region critical to US economic and security interests. When M19 terrorists officially “embraced democracy” in 1990, intelligence professionals understood this represented tactical adaptation rather than ideological transformation: the group shifted from violent confrontation to institutional infiltration, playing a decades-long political game while US policymakers focused on four-year election cycles. The current situation creates multiple economic intelligence concerns for US municipalities and businesses: potential disruption of trade relationships with Colombia, increased migration pressures affecting border communities, and precedent for Chinese economic influence operations in Latin America that could affect US supply chains and regional economic partnerships. How might political instability in Colombia affect regional trade patterns? What signals indicate Chinese economic influence operations in other Latin American countries? Which US communities have economic exposure to Colombian trade relationships that could be disrupted by constitutional changes or increased Chinese influence?

Red River Flavor

RFK JR. TARGETS AMERICA’S CARB ADDICTION WHILE FOOD GIANTS FACE FEDERAL LAWSUIT OVER ULTRA-PROCESSED MARKETING The The Wall Street Journal‘s editorial supporting RFK Jr.’s campaign against America’s carbohydrate addiction arrives as eleven major food manufacturers face federal lawsuits for deliberately engineering “addictive” ultra-processed foods and marketing them aggressively to children, exposing how food industry deception creates economic burdens for communities through workforce health costs and healthcare expenses. The Pennsylvania lawsuit against Kraft Heinz, Coca-Cola, PepsiCo, General Mills, and Nestle alleges these companies spend approximately $2 billion annually marketing ultra-processed foods to children while knowing their products cause health problems including type 2 diabetes and fatty liver disease that “were unheard of in children 40 years ago but are now common.” This legal action reveals how food industry lies create measurable economic impacts: unhealthy populations require more healthcare resources, experience reduced workforce productivity, and generate higher insurance costs that affect business attraction and retention in affected communities. RFK Jr.’s focus on carbohydrate reduction challenges the USDA’s grain-heavy dietary guidelines that have coincided with dramatic increases in obesity and diabetes, while supporting traditional eating patterns that emphasize natural fats and proteins that Red River Spices formulations are designed to enhance. Communities: How do food industry marketing practices affect local healthcare costs and workforce productivity? Which businesses consider community health metrics when making location decisions? What policies could reduce exposure to deceptive food marketing while supporting legitimate food businesses that promote actual health rather than processed food consumption? MAJOR FOOD COMPANIES FACE FEDERAL LAWSUIT OVER ULTRA-PROCESSED FOOD MARKETING TO CHILDREN

The Music Cities

LIVE NATION’S $1 BILLION INVESTMENT PROVES MUSIC VENUES DRIVE ECONOMIC DEVELOPMENT MORE EFFECTIVELY THAN TRADITIONAL INCENTIVES Live Nation’s announcement of $1 billion investment in 18 new music venues across smaller American cities demonstrates how entertainment infrastructure creates sustainable economic development that outlasts conventional incentive packages and tax breaks. The investment targets markets including Birmingham, Alabama; Virginia Beach, Virginia; and Allentown, Pennsylvania, bringing major concerts to communities that previously required residents to drive hours to major metropolitan areas for quality live entertainment. Oxford Economics projects the investment will generate $2.9 billion in total economic impact during construction and $1.4 billion annually once venues begin operations, creating multiplier effects through hotel stays, restaurant visits, and retail spending that ripple through local economies in ways traditional industrial recruitment rarely achieves. Unlike manufacturing plants that can relocate when incentive packages expire, music venues create permanent cultural infrastructure that attracts and retains young professionals while establishing communities as regional entertainment destinations. The announcement validates the Music Cities economic development strategy: rather than competing with identical incentive packages, communities can differentiate themselves through authentic cultural offerings that create unique value propositions for residents and businesses. Live Nation hired 37,000 workers in 2025 and set a $20 minimum wage for crew positions, demonstrating how entertainment industry jobs provide better compensation and working conditions than many incentive-chasing industries that communities typically pursue.

Space Economy Signal

COMMERCE DEPARTMENT AWARDS PATHFINDER GRANTS TO ACCELERATE COMMERCIAL SPACE LICENSING The Department of Commerce’s announcement of Commercial COLA (Commercial Launch Authorization) Gap Pathfinder awards represents a significant shift toward streamlining space industry regulations that have constrained economic development in aerospace communities across the United States. The Pathfinder program addresses licensing bottlenecks that have prevented space companies from scaling operations efficiently, particularly affecting emerging space hubs in states such as Texas, Florida, and California, as well as emerging markets in Alabama, Colorado, and New Mexico. These grants support the development of more efficient regulatory frameworks for commercial space operations, potentially reducing licensing timelines from months to weeks while maintaining safety standards that protect both space operations and ground-based communities. For economic development professionals, this signals the transition of the space economy from experimental to routine commercial operations, creating opportunities for communities with aerospace manufacturing capabilities, technical workforce training programs, and proximity to launch facilities. The pathfinder approach suggests federal agencies are recognizing that bureaucratic delays in space licensing impose economic costs on the entire industry ecosystem, from launch providers to satellite manufacturers to space tourism operators. Communities positioning themselves for space economy growth should monitor: Which regulatory improvements will reduce barriers for space companies? How can local workforce development programs align with streamlined space industry requirements? What infrastructure investments could attract space companies benefiting from faster federal licensing processes?

About Street Economics Daily

Street Economics Daily cuts through noise, jargon, and bureaucracy to deliver sharp, actionable insights for civic and economic development professionals. Blunt, irreverent, and grounded firmly in reality, it’s essential daily reading for city leaders who refuse to settle for outdated strategies.

BusinessFlare | Street Economics | Drama Meter | The Music Cities | Goodnight’s Red River