Will New York Become The Next Detroit?
Wall Street as we know it may not be long for this world—though the movement that occupied its parks has little to do with it. The New York Times reports that, despite good years for America’s investment bankers, the number of mid-level financial positions on the Street is slowly dropping as banks escape the city’s regulations, high taxes, and high labor costs to open offices in friendlier states like Utah, North Carolina, and Florida.
New York city is looking more and more like a Potemkin Village these days. The middle levels of the city’s private sector are hollowing out, with fewer positions between the high wage titans and the low wage service-sector workers. Wall Street’s CEOs may still keep their high-rent digs in Lower Manhattan, but the cohort of well-paid but not super-rich employees that forms the middle class of any investment bank is quietly moving out of the city for cheaper rents elsewhere.