(TheLastPatriotNews.com) – Democrat-run California and New York are experiencing a hugely significant exodus of financial companies managing over $2 trillion in assets, which have moved to Republican-led states such as Florida and Texas.
Three hundred seventy major investment companies whose portfolios total $2.7 trillion left New York and California between March 2020 and March 2023, relocating to Sun Belt states government by the GOP, Bloomberg reports, as cited by Newsmax.
It notes the Wall Street companies have been “repelled” by California and New York’s “rampant crime, high taxes and exorbitant housing costs.”
At the same time, the cost of living in the Republican-led Sun Belt states is up to 40% cheaper.
The combined assets of the companies quitting in California and New York for Sun Belt states represent 2.5% of the total assets managed by investment firms in the nation.
Republican-led states like North Carolina and Tennessee benefited from the financial departure from Democrat-run jurisdictions.
The two states attracted asset portfolios worth $600 billion after Allspring Global Investment left San Francisco for Charlotte in 2022 and AllianceBernstein abandoned New York for Nashville in 2021.
“The mass migration is taking a toll on California’s and New York’s tax revenue base, as well as career prospects for financial professionals,” the report points out.
Thus, while 33% of all US financial industry jobs were in New York, by 2022, its share had collapsed to 17.6%.
Other investment firm giants who have moved recently include Charles Shwab, which moved its headquarters from San Francisco to Dallas; Icahn Capital Management and Cathie Wood’s ARK Investment, moving from New York to Florida; DoubleLine abandoning Los Angeles for Tampa; and Ken Griffin’s Citadel leaving Chicago for Miami.
The departure of the financial companies from Democrat-run big cities is also causing massive losses to the real estate markets in New York City, Los Angeles, Boston, and Chicago.
The report notes some financiers “relish living in Republican-leaning states” over efforts to “reinstate legal migration, restrict late-term abortion, and recalibrate diversity and green initiatives.”
“People don’t drop cocktail glasses at a party just because you said something,” comments David Blumberg from Tiger 21, a global network of high-net-worth individuals.
Repelled by rampant crime, high taxes and exorbitant housing costs, financial firms managing $2 trillion in assets have left New York and California for Texas, Florida and other Sun Belt states where the cost of living is as much as 40% cheaper. https://t.co/f7OK6Wbahl
— NEWSMAX (@NEWSMAX) August 22, 2023