Economics: Why Miami Is Stealing New York`s Finance Industry

 (Drivebycuriosity) - Recently I spend some days in Miami. Florida`s metropolis is a pleasant place. It seems that others share this view. The chart below shows that the Miami region is gaining a lot finance jobs. Since New York is the financial capital of the US it seems that Miami is stealing New York´s finance industry, at least parts of it.

 

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There are indeed some reasons to move from New York to Florida. The almost tropical state has an attractive climate. Ok, it`s hot and humid in summer, but New York`s summer months are almost the same. And the northern metropolis can have very ugly winter days. The cold is not the worst. Blizzards and North-Eastern storms clock the streets frequently with lots of snow and often black ice makes walking a dangerous adventure. Not in Miami.

And New York`s politics are even worse. The city is traditional "liberal", meaning left-leaning. New York State charges a state income tax, Florida doesn`t. So high earners save a lot of money when they move south. "Liberal" New York City is also more bureaucratic and has more regulation than Miami, which is slowing businesses. New York`s neglected infrastructure (subway, streets) also reduces her atractivity.

And its getting worse. It seems that the so-called "Progressives" are gaining influence in the city parlaments. Their anti-capitalist stance creates economic headwinds. The "progressive" mob around Alexandria Ocasio-Cortez, known as AOC, already hindered Amazon to move headquarters to the Big Apple ( marginalrevolution). Not long ago BLM and Antifa activists rioted and  demolished many shops, turning Manhattan`s Soho neighborhood almost into Beirut.

The growing Antifa sentiment in "liberal" New York - combined with the "progressive" trend to "defund police - leads to a rising criminality. Reports about stabbings & shootings are getting more frequent and a notice a lot of heroin junkies in my Lower East Side neighborhood (boweryboogie ). Toxic for doing business.

 

Apparently New York is in a crisis. Miami is benefiting from that.