A Disturbing Trend


New York Has the Most Millionaires
Robert Frank

According to the new Metro Wealth Index, created by consulting firm Capgemini, the New York Metropolitan area had 650,000 high-net worth individuals, or people with $1 million or more in investible assets in 2009. That is 18.7% higher than in 2008.

Once again, the New York area topped the list of metro-area wealth centers. Its total was greater than the combined total of the next three runners up–Los Angeles, Chicago and Washington.

Of the top 10, Houston posted the the fastest growth, at 28.9%. But all enjoyed strong growth.

Here are the tallies of millionaires for the top 10, along with the percentage growth:

New York – 667,200, +18.7%

Los Angeles – 235,800, +13.3%

Chicago – 198,100, +15.1%

Washington, D.C. – 152,400 +19.3%

San Francisco – 138,300 +14.5%

Philadelphia – 104,100, +20.1%

Boston – 102,300, + 14.4%

Detroit – 89,100, +12.1%

Houston –- 88,200, +28.9%

San Jose — 86,500, +24.5%

What are the takeaways?

First, that the U.S. taxpayers’ bank bailouts certainly helped those on Wall Street (though why New York still has huge budget problems given the wealth surge in 2009 and much-publicized tax burden of the wealthy remains a mystery).

Second, that finance, technology and oil remain the main sources of wealth in the U.S.

Third, while New York, D.C., Houston and San Jose are now above 2007 levels, the rest are still below the 2007 heights.

Fourth, that 2010 may not be as rosy as 2009 when it comes to minting new millionaires or re-minting the old ones.
What patterns do you see in the numbers?

The seat of government, Washington, DC,  placed in the top five American cities with millionaires and that should say something about what government has done to its citizens.  In a city where the only business is government which then goes and has a steadily increasing number of millionaires from one year to the next but was virtually deadlocked and or engaged in acrimonious debate on increasing unemployment benefits for the country’s unemployed says something about what many people in government think is their role.  The war on terror has led to the enrichment of many private citizens whose wealth depends on a fearful government willing to empty out its coffers to fight or demonize people who either don’t exist, mean them no harm or are incapable of inflicting harm, at the expense of the majority of the American people.  In this case, the expression ‘follow the money’ has meaning!

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