People are getting laid off so they can be replaced by entry-level low wage workers who will have absolutely no spending power, and from whom the city and state won't be able to extract tax revenue.
Businesses are collectively sinking their own ships to try and economically reduce government.
The timing is different for each business, between the time a business cuts it's costs by laying off employees and when the negative consequences occur, but in every case the delay is long enough for the cause of those negative consequences to be vaguely blamed on "the economy," rather than the businesses own practice.
The state and city cut a tiny bit deeper into it's own throat by laying off highly paid government workers. The tax loss won't be felt for a while, but it's inevitable.
The shock to the local private sector economy is three-fold for every government worker laid off, by virtue that most government employees are paid at least twice the private sector average wage, even more if you include benefits.
No customers, intermittent fire and police protection, utilities rendered unreliable, If you own your own business and you own the building too, you've doomed yourselves.
My advice is to continue to hype the local economy long enough to sell your business. Oh, sorry about giving away that secret.
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