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Wealthy residents who fled New York resulted in estimated billions in lost income

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New York is also known as the Big Apple  with its numerous tourist destinations such as the Statue of Liberty, Wall Street, Empire State Building and Broadway shows faced a challenge with the Coronavirus pandemic. Governor Cuomo and Mayor Bill de Blasio’s strict Covid-19 policies and the Coronavirus pandemic made it difficult for businesses to thrive, wealthy residents to flee and caused New York a shadow of its once-famous glory.

Over 300,000 wealthy residents fled the City during the pandemic, resulting in an estimated loss of $34 billion. However, at the same time, millions of others with lower incomes took their place according to a study released on Tuesday.

Thomas Walle, the chief executive and co-founder of Unacast said, “Maybe the greater impact is how the population is changing and how the demographics are changing.”

In Tribeca, a wealthy neighbourhood in downtown Manhattan, residents who left this year earned an average income of about $140,000. The average person who moved into the neighbourhood earned an average of $82,000.

According to sociologists, the changing demographics may lead to more affordable brands taking the place of higher-end stores. At the same time, real estate developers will need to offer more lower-priced housing options.

NYC Comptroller Scott Stringer mentioned in an interview with Market Watch, there was a 90 per cent decline in tourism in the last quarter of the fiscal year in 2020.

“In the midst of the pandemic, we are starting to realize that our 62 million [annual] tourist visitors will be no more in the short term,” Stringer said.

Even the sanitation budget was cut by more than 100 million dollars.

The mass exodus of the wealthy and income across the city may have lasting consequences for New York City as it attempts to recover from the economic crisis caused by the Coronavirus pandemic.

Politicians also voiced their views concerning the state of New York. Governor Cuomo stated the mass exodus from mostly wealthy residents hit tax revenues hard. Cuomo said: “A single percent of New York’s population pays half of the state’s taxes and they’re the most mobile people on the globe.”

However, Mayor Bill de Blasio previously made a public plea for taxing the rich and redistributing their wealth. Mayor de Blasio said: “Help me tax the wealthy. Help me redistribute wealth. Help me build affordable housing in white communities if you want desegregation.”

New York also saw a crime wave. In one incident a man in the subway attempted to rape a woman in full view of the public, undeterred by a member of the public filming him and calls from others telling him to stop.

In the 11 months of 2020, shootings in New York City surged to levels unseen in years, the New York Police Department said.

Whilst the overall crime overall remained flat, the number of shootings increased  in November by 112%. The NYPD said there were 115 shootings last month compared to 51 in November of 2019. For the year, shootings rose 95% (1,412 vs. 721) through the first 11 months of 2020 compared with the same period last year.

Coupled with the Coronavirus pandemic the rising crime was one of the major factors that caused residents to flee the city.

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