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What affect will this have on NJ's middle class culture? I think it will be REAL bad. NJ historically hasn't had the sort of income inequality that NYC has, but I think this has been changing. You see it a lot recently in Hudson and Bergen County, you no longer have the older middle class couple moving here from the city, but a lot of the urban poor that can no longer afford to live near city centers. Most of the back offices of large firms are now located in NJ, other than Deutsche bank , no large bank has their office on Wallstreet anymore, even the GS building doesn't have a GS logo on.
Bad for NJ? I think. NYC still hasn't recovered from the 2009 banking bust, and with the corruption in NJ politicians I see NJ getting hurt during future recessions if larger parts of our economy rely on the financial industry. Any thoughts?
Most of the jobs that have or are being moved to NJ are things like IT and operations. The "wall street" kind of financial people will never move from NYC. The jobs in question are probably a lot more middle class then you think. Not to mention that they are just setting up shop across the river from NYC. Its not like they are moving offices out to truly suburban places like Mahwah, Parsippany, or Bridgewater where only NJ people would be applying for them. Nothing prevents someone from NYC from commuting to Jersey City.
I think more jobs that pay well in NJ is always a good thing.
Citigroup will be leaving One Court Sq in Queens once the lease is up and relocating to a Tribeca HQ. Close enough to Wall St that I'd call your morbid outlook untrue. In the telecommunications age a monolithic HQ with thousands of staff working in one building has become outdated. The NYC metro will still be an epicenter for core business units and executive staff while the paper pushers are moved out of state.
Most of the jobs that have or are being moved to NJ are things like IT and operations. The "wall street" kind of financial people will never move from NYC. The jobs in question are probably a lot more middle class then you think. Not to mention that they are just setting up shop across the river from NYC. Its not like they are moving offices out to truly suburban places like Mahwah, Parsippany, or Bridgewater where only NJ people would be applying for them. Nothing prevents someone from NYC from commuting to Jersey City.
I think more jobs that pay well in NJ is always a good thing.
I doubt that. Many financial products were structured by Quants, derivatives like CDOsbeing the most common, and they took the hardest hit when WS tanked, with often the Quant divisions falling out first. Thoes same Quants are now working at HFs.
For IT infastructure etc...I agree it can be a good thing
Last edited by throwitdontshowit; 01-19-2016 at 12:50 PM..
I agree that it's mainly IT/Operations/Back Office that are moving to NJ. All the front office traders and investment professionals are still and will remain in Manhattan. The back office locations that are not immediately near NYC have employees that are mainly from NJ, so overall I think it's a good thing.
If you're talking about hedge funds or quant shops that relocate to NJ, well, those are extremely difficult to get into regardless of where you're from (unless of course you graduated from an Ivy League school and have investment banking/PE/consulting etc background), so for the majority of people in NJ, it won't have an impact.
What affect will this have on NJ's middle class culture? I think it will be REAL bad. NJ historically hasn't had the sort of income inequality that NYC has, but I think this has been changing. You see it a lot recently in Hudson and Bergen County, you no longer have the older middle class couple moving here from the city, but a lot of the urban poor that can no longer afford to live near city centers. Most of the back offices of large firms are now located in NJ, other than Deutsche bank , no large bank has their office on Wallstreet anymore, even the GS building doesn't have a GS logo on.
Bad for NJ? I think. NYC still hasn't recovered from the 2009 banking bust, and with the corruption in NJ politicians I see NJ getting hurt during future recessions if larger parts of our economy rely on the financial industry. Any thoughts?
If i'm reading this post correctly, your saying that if people with high incomes move into NJ thats a bad thing. From an economic perspective that is 100% wrong.
If i'm reading this post correctly, your saying that if people with high incomes move into NJ thats a bad thing. From an economic perspective that is 100% wrong.
What I'm saying is a lot of the services/markets (ie real estate) built around those salaries won't be as inelastic to the market if we pour more and more into the finance industry. They will collapse like the housing market in 2009 and take a lot of the towns/businesses with it
Back office and IT jobs in the financial industry pay middle class/perhaps upper middle class salaries. They don't make people rich. They also tend to be more stable then jobs in business areas that can be completely decimated if the business does not perform. Though of course the cuts are always possible. Overall, it is not bad for NJ if these jobs move to the state but would not make a huge difference.
The problem in NJ and the rest of the country is the lack of quality jobs for people with either high school diploma or community college degree. Jobs flipping burgers somewhere in the "service" industry do not provide meaningful employment.
What I'm saying is a lot of the services/markets (ie real estate) built around those salaries won't be as inelastic to the market if we pour more and more into the finance industry. They will collapse like the housing market in 2009 and take a lot of the towns/businesses with it
The marginal difference between how much Wall Street has already been supporting the higher income towns vs the new movement of some personnel is negligible. Already many of the top income towns are supported by financial industry dollars. Further, during a true market crash like 2008, you don't need to be near Wall Street to feel the pain as clearly evidenced already. So living in fear of some employment movement between lower Manhattan and NJ is misplaced. Finally, the old adage will remain: a good safe neighborhood with nice housing stock, within a decent distance to a major metropolitan city, plus good schools will always be in demand longer term.
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