What Would New York Look Like With a Smaller Financial Sector?

Violent, crime ridden, crumbling infrastructure and de-populating? Megan McArdle tries to answer the captioned question today:

(…) What turned this around was not the creative class, who were still flocking to rent-controlled apartments in the safer parts of town. No, what made the difference was money. Money bought peace among the city’s various interest groups, repaired infrastructure that had been neglected for decades, and paid for more police. It created jobs in construction and services and almost everything else you can imagine. And where did that money come from? Deregulation, and a 17-year bull market that inflated Wall Street salaries, and tax revenues right along with them. Without the financial renaissance, these days New York might well look a lot more like Detroit or St. Louis.

So it’s interesting to contemplate what it will look like, if the financial industry gets shrunk down to the size that many are hoping. The last time that happened, in the 1930s-1960s, New York had a lot of other businesses: shipping, manufacturing, and for that matter, being the corporate headquarters for so many national businesses. That’s pretty much ended. New York is now a specialist city: creative industries, finance, and tourism.

Read the whole thing »

What do you think? (first time comments are moderated)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s