It's Election Day, and two notable former Wall Street dealmakers, Michael Bloomberg and Jon Corzine, are up for re-election. And guess what? Their campaign spending has become an economic stimulus program of sorts to the local economies of New York City and New Jersey.
Bloomberg, who amassed his wealth from the creation of one of the largest business media company, Bloomberg LP, which also acquired BusinessWeek last month, is expected to spend a record $95 million by Tuesday for his third run for New York City mayor, according to the New York Daily News. That exceeds the $84.6 million he spent in 2005 for his re-election, a race he handily won, and his first run in 2001 when he spent $74 million. Bloomberg's Democratic opponent Bill Thompson reportedly has spent $6 million of his $8 million campaign funds.
Meanwhile, N.J. Gov. Corzine, who was co-chairman of Goldman Sachs Group Inc. (NYSE:GS) from 1994 to 1999, is making his re-election bid against Republican Chris Christie and Independent Chris Daggett. Corzine is in the political fight of his life as polls show the race for the governor will be tight. The 62-year-old Princeton resident has looked to use his deeper wallet to his advantage, spending $23.6 million as of Oct. 28, according to the state Election
Law Enforcement Commission, while Christie has spent $8.8 million, and Daggett has used $1.2 million.
The New York City mayoral and New Jersey gubernatorial elections have given a small boost to the local economies, with both candidates buying television and radio ads as well as temporarily hiring campaign workers, but the spending likely won't be enough to appease local voters. New York City and New Jersey are ailing due to high unemployment and runaway taxes -- and perhaps all this spending might just backfire, prompting a backlash in the voter's booth.
But Christie is still skeptical about the difference in campaign spending. "When somebody outspends you 3 to 1 on nothing but negative ads, that has an effect, there's no question that has an effect ... that's quite a thing to be up against," he told The Star-Ledger. - Gerald Magpily
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New York unemployment is on the rise, but conditions vary throughout the state according to this heat map:
http://www.localetrends.com/st/ny_new_york_unemployment.php?MAP_TYPE=curr_ue