BY TYLER DURDEN
SUNDAY, MAY 03, 2026 – 10:45 PM
Many people are familiar with the "blue state exodus" over the past several years, but are they aware of the blue city business exodus?
It might be one of the biggest economic stories in modern US history, and Democrats are trying to keep it as quiet as possible. There is a blood letting going on in blue cities; a financial disaster in the making. And, like most financial disasters, it will probably be ignored until the house of cards comes crashing down completely.
For this examination let’s look at three very different examples, all facing similar crises. We start in New York City, where taxes have been consistently increased in order to offset the loss of billions in public revenues due to citizens leaving. NYC has experienced a net loss of around 220,000 residents since 2021, but it’s not the number of residents that is most important. Rather, it is the wealth of those residents that matters.
In the past two years alone, NYC has lost around 6000 businesses to closure or relocation, and the region is suffering from significant wealth decline. These losses represent tens of billions of dollars in tax revenues, erased from NYC coffers. And what did New Yorkers do? They elected Zohran Mamdani, doubling down on the far-left policies that caused the crisis in the first place.
Today, Mamdani is launching his much hyped "wealth tax" with the intention of funding the many socialist programs he promised to implement during his campaign. Sadly for the new Mayor, he is only now starting to realize that the more he taxes successful residents the more they will simply leave.
Companies including Apollo Management, JP Morgan Chase, ARK Investment, Wells Fargo and Citadel are all establishing primary corporate offices in Texas and Florida with rumors swirling that many other corporations are planning to leave NYC entirely. While Democrats deny this is a threat, the real test will be the wealth tax – Companies have been waiting to see if Mamdani will actually be stupid enough to follow through, and yes, we now know he is.
Source:
https://www.zerohedge.com/economics/blue-cities-across-us-are-spiraling-financial-collapse