The End of New York City

Today I was think ing about the New York City economy so and how it's a mystery to me that it hasn't tanked much further. I went over to Wikipedia to look at this article on New York City's economy and found the following table, which I am lifting in its entirety. 

Of course there are other people who work in the city, in fields like advertising, marketing, law, consulting, architecture, and design. In other words, fields that service companies like those listed below. 

Companies in green are in finance, companies in yellow are in entertainment. Many, if not most, face insolvency.   

The Top 25 Fortune 500 Companies in New York City
rank in: corporation Headquarters
(New York, NY)
Fortune 500 industry group 2007
Revenues
($ million)
Stock
price
2008
NYC NYS US
1 1 8 Citigroup 399 Park Ave. 10043 Commercial Banks
$159,229
77.2%
2 2 12 J.P. Morgan Chase & Co. 270 Park Ave. 10017 Commercial Banks
116,353
–27.8%
3 3 13 American International Group 70 Pine St. 10270 Insurance: Property and Casualty (stock)
110,064
97.3%
4 5 17 Verizon Communications 140 West St. 10007 Telecommunications
98,786
–22.0%
5 6 20 Goldman Sachs Group 85 Broad St. 10004 Securities
93,775
60.8%
6 7 21 Morgan Stanley 1585 Broadway 10036 Securities
87,968
69.8%
7 8 30 Merrill Lynch 4 World Financial Center 10080 Securities
87,879
78.3%
8 9 37 Lehman Brothers Holdings 745 Seventh Ave. 10019 Securities
64,217
 
9 10 43 MetLife 200 Park Ave. 10166 Insurance: Life, Health (stock)
59,003
–43.4%
10 11 47 Pfizer 235 E. 42nd St. 10017 Pharmaceuticals
53,150
–22.1%
11 12 49 Time Warner 1 Time Warner Center 10019 Entertainment
48,418
–39.1%
12 14 75 American Express 200 Vesey St. 10285 Diversified Financials
46,615
64.3%
13 15 77 Hess Corporation 1185 Sixth Ave. 10036 Petroleum Refining
39,474
–46.8%
14 16 80 Alcoa 390 Park Ave. 10022 Metals
32,316
69.2%
15 17 82 New York Life Insurance 51 Madison Ave. 10010 Insurance: Life, Health (mutual)
31,924
 
16 18 84 News Corporation 1211 Sixth Ave. 10036 Entertainment
30,748
55.6%
17 19 86 TIAA-CREF 730 Third Ave. 10017 Insurance: Life, Health (mutual)
29,280
 
18 20 125 Bristol-Myers Squibb 345 Park Ave. 10154 Pharmaceuticals
28,655
–12.3%
19 21 139 Loews Corporation 667 Madison Ave. 10021 Insurance: Property and Casualty (stock)
27,526
–43.9%
20 22 156 Bear Stearns 383 Madison Ave. 10179 Securities
19,977
 
21 24 172 Bank of New York Mellon Corporation 1 Wall Street 10286 Commercial Banks
17,920
–41.9%
22 25 181 CBS 51 W. 52nd St. 10019 Entertainment
16,151
69.2%
23 26 182 L-3 Communications 600 Third Ave. 10016 Aerospace and Defense
15,985
–30.4%
24 27 186 Colgate-Palmolive 300 Park Ave. 10022 Household and Personal Products
14,798
–12.1%
25 29 191 Viacom 1515 Broadway 10036 Entertainment
14,073
54.3%
NYC = New York City; NYS = New York State; US = United States
All data except stock price changes are for either the calendar year ending on December 31, 2007 or the company's fiscal year ending before February 1, 2008.
Stock price changes are for the calendar year 2008. Declines of over 50% are in boldface. Over the same period (December 31, 2007 to December 31, 2008), the 30-stock Dow Jones Industrial Average declined by 33.8% and the Standard & Poor's index of 500 leading stocks declined by 38.5%. By the end of 2008, the stocks of Bear Stearns (acquired by JPMorgan Chase) and Lehman Brothers (in dissolution) were no longer being traded.
Sources: Fortune 500 website and Fortune, May 5, 2008 (Volume 157, number 9), pages F-1 to F-10, F-28, F-34, and F-40 to F-41.
Stock price change between December 31, 2007 and December 31, 2008 from "Year–End Review: Markets and Finance 2008", The Wall Street Journal, Friday, January 2, 2009 (Volume CCLIII, number 1), pages R-15 to R-18.

 

Comments

so?

In the worst economic environment in decades, it would be surprising if all of these countries weren't in deep trouble. Is your point that New York would face dire trouble if these companies failed? No doubt, but it wouldn't spell ruin the city - these firms are together only a small fraction of the city's total employment or production. New York isn't a company town - losing one or even twenty-five firms won't sink it.
While finance - the sector in the most danger - is a huge part of New York's image and income, the region and city are diversified. The places in the biggest danger are smaller cities that have highly focused in finance. You might be surprised that 28% of the jobs in Bloomington, IL are in finance.
Finance is a huge part of New York's income, but keep in mind that New York's service industries (advertising, media, design) serve national and international markets. In Bloomington or Charlotte, it's reasonable to suppose that the service sectors are more locally focused, and therefore more vulnerable to downturns in the basic sector.

I wouldn't exactly say these

I wouldn't exactly say these are a small fraction of the city's economy. And no, I wouldn't be surprised that Bloomington and Charlotte, or for that matter would be hit hard. I fully expect it. In the case of any city, New York included, what can you point to besides finance, insurance, construction, real estate, trade, advertising, and media. Columbia can't support the entire city! Neither can hospitals. And I'm not sure what else is left. Take a look at these statistics. Our economy IS post-industrial. Manufacturing is a thing of the past while mining and agriculture have not exactly been strong points of the city in the recent past. I'm not sure what's left. 

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