Tuesday, July 03, 2012
This is an revealing story. Wall Street firms are moving back office jobs out of Manhattan to lower cost venues. It has been happening for a long time but it might be accelerating. Like it or not, the city's tax base depends on middle class jobs in the finance industry, the last great business of New York City. It cannot live on wealthy hedge fund managers alone. So, how would you convince Wall Street firms to keep jobs in New York? There is no good reason in the internet age for such jobs to remain. Erosion might be inevitable and a lost cause. So, what would you do to attract new employment? There is excitement that a technology corridor is growing in the city, but that will be hardly enough to replace thousands who are moved to Florida and elsewhere. What is a city if it becomes hollowed out? Ask Detroit.