A while ago, the military-industrial complex figured out a neat trick to keep political influence across Congress. They would site a small parts factory in virtually every community in America. This would give that community a stake in continuing to build the weapons of war. A member of Congress voting against military spending would have to not only think about the balancing of budget priorities between defense and other line items, but they would have to think about jobs in their districts.
I see an early indication that Wall Street, previously confined to a few square blocks in New York City, may be going that route as well.
New York’s biggest investment houses are shifting jobs out of the area and expanding in cheaper locales in the United States, threatening the vast middle tier of positions that form the backbone of employment on Wall Street […]
“Places like New York or London will remain financial centers, but most of the players are taking a much harder look and asking whether they can move large numbers of jobs,” said James Malick, a partner at the Boston Consulting Group who advises banks on relocation. In addition to higher taxes in the New York region, employers face real estate and labor costs significantly above the national average.
Consultants say they have seen a sharp pickup in this trend, known as near-shoring, as opposed to offshoring overseas. Goldman Sachs, during a presentation to investors in late May, even boasted of the cost savings that relocating jobs can bring.
“Some functions need to stay in the United States, but they don’t need to be in New York City or near the client,” Mr. Malick said. And with most investment giants facing anemic revenue and more stringent regulation that cuts into trading revenues, relocation is more tempting than it was before the financial crisis.
Among the sites under consideration are places like Salt Lake City, North Carolina and Jacksonville, Florida. But that’s just the beginning. We’ve seen this movie before. The finance lobby couldn’t get by with the inference that what’s good for Wall Street is what’s good for Main Street. So instead, they’ll bring Wall Street to Main Street, and then force politicians who want to crack down with stiffer regulations and penalties to hurt their own constituents in the process. Think about how much of a stooge Chuck Schumer is for Wall Street special interest, and now magnify that by the entire country. It’s pretty ingenious, you have to admit.