Posted BY: Jasmine | NwoReport
Wall Street firms have been steadily leaving New York City over the past few years, resulting in a staggering loss of approximately $1 trillion for the city’s economy. The departure of nearly 160 financial firms since the end of 2019, according to data from Bloomberg, has prompted a significant outflow of assets under management. The reasons for this massive shift are multifaceted but notably include concerns about rising crime rates, homelessness, lawlessness, and the perceived influx of illegal immigrants into the city.
Faced with these challenges and seeking to escape high taxes and an increasingly unaffordable cost of living, 158 financial companies have relocated their headquarters out of the city, taking with them close to $1 trillion in assets. This substantial loss also means the departure of thousands of highly paid employees, impacting the city’s talent pool and workforce.
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Prominent figures in the financial sector, such as Icahn Capital Management led by billionaire Carl Icahn, have chosen to move their operations to states like Florida. Icahn’s firm, managing assets worth $22.2 billion, shifted its base from Manhattan to a Miami suburb in August 2020. The repercussions of this exodus extend beyond just the financial sector. The departure of affluent individuals and businesses could lead to a decline in the city’s tax base and economic activity.
The empty office spaces, apartments, and homes left after this departure pose significant challenges for New York’s future. Ultimately, this trend highlights the more important implications of socio-political dynamics on economic decisions. The situation serves as a reminder that policies and circumstances can have far-reaching consequences on businesses and individuals, leading to an uncertain future for the city and its economic recovery. As the city faces these challenges, it remains to be seen how it will adapt and evolve to regain its financial and cultural prominence.