Hi everyone!
Recently I submitted an article to be published in the Cornell Business Journal (CBJ). CBJ is the only independently run organization at our school and is essentially a student run small business. It is one of the great things you can get involved with during your tenure at the Johnson School and provides a way to pose interesting questions and issues while reaching a considerable amount of people. Its audience includes current students and alumni - via physical and on-line distribution.
I wanted to share my article with you...hope you enjoy!
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New York City: Passe? Or a Classic that Never Goes out of Style?
For years people from all over the world have clamored to get to the Big Apple. It represented possibility, freedom, and an exciting life...a successful life. It was home to the best of the best. Whether in finance, fashion, or art, those at the top of their game definitely played on the little east coast island. Now New York City faces many competitors as young professionals look to other cities in hopes of catching the next big wave - and this has left many people asking, "Has New York City lost its luster?"
Take Seth Johnson, a Washington DC business man and a total shoo-in to become a New Yorker, but decided on Dubai instead. He now commands a high salary and hand picks jobs from Saudi Arabian investors with deep pockets. Then there's Pavan Krishnamurthy, a child psychologist currently finishing his residency in San Francisco. He always dreamt of living in NYC but has set his sights on Berlin, claiming it is the new New York City and that the old one is dead. Sean Davenport, an independently wealthy entrepreneur who could live anywhere in the world, well he chose Jacksonville, FL commenting, "Who wants to be in NY now? I mean, it's such a downer." Yes, perhaps these people would have chosen alternate cities anyway, but the fact is these stories are becoming much more common, than 'I dream of NYC' stories.
Emphasizing this shift is obviously the current economic situation. New York City's unemployment rate in December totaled 7.4 percent and is predicted to rise until it hits 10.5 percent, a previous peak occurring in the 1970s. Budget officials also assume that the city will lose 294,000 jobs from mid 2008-2010, including 46,000 from the financial services industry. Tourism is down five percent, many small businesses have closed their doors, and retailers find themselves in constant sale mode. A global issue for sure, but New York City is just one of those places where you absolutely cannot live, unless you have a paying job (a high paying job is best) or fortunate circumstances. It practically costs $50 every time you step out your front door and, in contrast, other cities offer appealing lifestyles for a fraction of the cost.With this said, New York is infamous for being resilient, bouncing back, taking care of others when they're down on their luck, and for lighting up the mood the way only NYC can. For instance, many venues in the city promote Wall Street specials offering drinks at half the price when the Dow closes down 100 points or more. Then there's the Pink Slip Party where those who've found themselves without a job are provided a forum to meet and greet potential employers. A recession dining guide has been made and friends who have kept their jobs continue to lend a helpful hand to those that haven't. But is it enough?
In the immediate sense no, probably not - but financial crisis aside and with a more long-term view, one can surmise that while other parts of the world are pulling people in different directions, New York City will always afford opportunities of all desires and draw the best of the best to attention. Just because other destinations are rising up and becoming an integral part of the world business and political scene, does not necessarily mean that those who have been there for a while have become passe. For one to succeed, the other does not have to fail. So as people continue to move abroad or seek alternative residences, those who reside in the 917, 212, and 646 will surely call up their friends in Dubai, who every once in a while, say they miss New York.
Names in article were changed to protect privacy
New York City stats cited in New York Times, February 15th, 2009
U.S. unemployment rate totaled 7.2% in December 2008
