Another article by James Surowiecki in the New Yorker came up with some interesting statistics about the New York economy. The financial industry accounts for approximately 40% of all wages paid in Manhattan and 25% of the city’s GDP – that doesn’t include the legal industry which services the financial hub. Wall Street’s dominance curtails what can be done to reduce inequality but it is noteworthy that the top 1% of earners pay 43% of the NYC’s income tax.
Bill de Blasio, who won the Democratic mayoral primary in September, argued that to reduce inequality you need to increase the New York’s middle class which has fallen dramatically in the past few decades.
Where did the middle class jobs go?
For 30 years between 1969-99, NYC lost 400,000 jobs and ultimately workers. This was due to improved infrastructure and cheaper labour being enticed to the Sun Belt (a region of the United States generally considered to stretch across the South and Southwest) – latterly jobs in the manufacturing industry have gone overseas. Also with city policies designed to focus more on the financial sector and real estate, 51% of the remaining manufacturing jobs were lost in the last decade.
What does constrain the creation of middle income jobs is the cost of living – energy costs, taxes are steep, and rent is three times the national average. 30% of New Yorkers pay more than 50% of their income in housing costs.
Read the full article by clicking link below:
Below is an image from a website that shows how the heights of the buildings reflect the net worth of the people that are in them. There are a lot more images like this on the website below:.