Today I was think ing about the New York City economy so and how it’s a mystery to me that it hasn’t tanked much further. I went over to Wikipedia to look at this article on New York City’s economy and found the following table, which I am lifting in its entirety.
Of course there are other people who work in the city, in fields like advertising, marketing, law, consulting, architecture, and design. In other words, fields that service companies like those listed below.
Companies in green are in finance, companies in yellow are in entertainment. Many, if not most, face insolvency.
The Top 25 Fortune 500 Companies in New York City | |||||||
rank in: | corporation | Headquarters (New York, NY) |
Fortune 500 industry group | 2007 Revenues ($ million) |
Stock price 2008 |
||
NYC | NYS | US | |||||
1 | 1 | 8 | Citigroup | 399 Park Ave. 10043 | Commercial Banks |
$159,229
|
–77.2% |
2 | 2 | 12 | J.P. Morgan Chase & Co. | 270 Park Ave. 10017 | Commercial Banks |
116,353
|
–27.8% |
3 | 3 | 13 | American International Group | 70 Pine St. 10270 | Insurance: Property and Casualty (stock) |
110,064
|
–97.3% |
4 | 5 | 17 | Verizon Communications | 140 West St. 10007 | Telecommunications |
98,786
|
–22.0% |
5 | 6 | 20 | Goldman Sachs Group | 85 Broad St. 10004 | Securities |
93,775
|
–60.8% |
6 | 7 | 21 | Morgan Stanley | 1585 Broadway 10036 | Securities |
87,968
|
–69.8% |
7 | 8 | 30 | Merrill Lynch | 4 World Financial Center 10080 | Securities |
87,879
|
–78.3% |
8 | 9 | 37 | Lehman Brothers Holdings | 745 Seventh Ave. 10019 | Securities |
64,217
|
|
9 | 10 | 43 | MetLife | 200 Park Ave. 10166 | Insurance: Life, Health (stock) |
59,003
|
–43.4% |
10 | 11 | 47 | Pfizer | 235 E. 42nd St. 10017 | Pharmaceuticals |
53,150
|
–22.1% |
11 | 12 | 49 | Time Warner | 1 Time Warner Center 10019 | Entertainment |
48,418
|
–39.1% |
12 | 14 | 75 | American Express | 200 Vesey St. 10285 | Diversified Financials |
46,615
|
–64.3% |
13 | 15 | 77 | Hess Corporation | 1185 Sixth Ave. 10036 | Petroleum Refining |
39,474
|
–46.8% |
14 | 16 | 80 | Alcoa | 390 Park Ave. 10022 | Metals |
32,316
|
–69.2% |
15 | 17 | 82 | New York Life Insurance | 51 Madison Ave. 10010 | Insurance: Life, Health (mutual) |
31,924
|
|
16 | 18 | 84 | News Corporation | 1211 Sixth Ave. 10036 | Entertainment |
30,748
|
–55.6% |
17 | 19 | 86 | TIAA-CREF | 730 Third Ave. 10017 | Insurance: Life, Health (mutual) |
29,280
|
|
18 | 20 | 125 | Bristol-Myers Squibb | 345 Park Ave. 10154 | Pharmaceuticals |
28,655
|
–12.3% |
19 | 21 | 139 | Loews Corporation | 667 Madison Ave. 10021 | Insurance: Property and Casualty (stock) |
27,526
|
–43.9% |
20 | 22 | 156 | Bear Stearns | 383 Madison Ave. 10179 | Securities |
19,977
|
|
21 | 24 | 172 | Bank of New York Mellon Corporation | 1 Wall Street 10286 | Commercial Banks |
17,920
|
–41.9% |
22 | 25 | 181 | CBS | 51 W. 52nd St. 10019 | Entertainment |
16,151
|
–69.2% |
23 | 26 | 182 | L-3 Communications | 600 Third Ave. 10016 | Aerospace and Defense |
15,985
|
–30.4% |
24 | 27 | 186 | Colgate-Palmolive | 300 Park Ave. 10022 | Household and Personal Products |
14,798
|
–12.1% |
25 | 29 | 191 | Viacom | 1515 Broadway 10036 | Entertainment |
14,073
|
–54.3% |
NYC = New York City; NYS = New York State; US = United States | |||||||
All data except stock price changes are for either the calendar year ending on December 31, 2007 or the company’s fiscal year ending before February 1, 2008. | |||||||
Stock price changes are for the calendar year 2008. Declines of over 50% are in boldface. Over the same period (December 31, 2007 to December 31, 2008), the 30-stock Dow Jones Industrial Average declined by 33.8% and the Standard & Poor’s index of 500 leading stocks declined by 38.5%. By the end of 2008, the stocks of Bear Stearns (acquired by JPMorgan Chase) and Lehman Brothers (in dissolution) were no longer being traded. | |||||||
Sources: Fortune 500 website and Fortune, May 5, 2008 (Volume 157, number 9), pages F-1 to F-10, F-28, F-34, and F-40 to F-41. Stock price change between December 31, 2007 and December 31, 2008 from "Year–End Review: Markets and Finance 2008", The Wall Street Journal, Friday, January 2, 2009 (Volume CCLIII, number 1), pages R-15 to R-18. |
Today I was think ing about the New York City economy so and how it’s a mystery to me that it hasn’t tanked much further. I went over to Wikipedia to look at this article on New York City’s economy and found the following table, which I am lifting in its entirety.
Of course there are other people who work in the city, in fields like advertising, marketing, law, consulting, architecture, and design. In other words, fields that service companies like those listed below.
Companies in green are in finance, companies in yellow are in entertainment. Many, if not most, face insolvency.
The Top 25 Fortune 500 Companies in New York City | |||||||
rank in: | corporation | Headquarters (New York, NY) |
Fortune 500 industry group | 2007 Revenues ($ million) |
Stock price 2008 |
||
NYC | NYS | US | |||||
1 | 1 | 8 | Citigroup | 399 Park Ave. 10043 | Commercial Banks |
$159,229
|
–77.2% |
2 | 2 | 12 | J.P. Morgan Chase & Co. | 270 Park Ave. 10017 | Commercial Banks |
116,353
|
–27.8% |
3 | 3 | 13 | American International Group | 70 Pine St. 10270 | Insurance: Property and Casualty (stock) |
110,064
|
–97.3% |
4 | 5 | 17 | Verizon Communications | 140 West St. 10007 | Telecommunications |
98,786
|
–22.0% |
5 | 6 | 20 | Goldman Sachs Group | 85 Broad St. 10004 | Securities |
93,775
|
–60.8% |
6 | 7 | 21 | Morgan Stanley | 1585 Broadway 10036 | Securities |
87,968
|
–69.8% |
7 | 8 | 30 | Merrill Lynch | 4 World Financial Center 10080 | Securities |
87,879
|
–78.3% |
8 | 9 | 37 | Lehman Brothers Holdings | 745 Seventh Ave. 10019 | Securities |
64,217
|
|
9 | 10 | 43 | MetLife | 200 Park Ave. 10166 | Insurance: Life, Health (stock) |
59,003
|
–43.4% |
10 | 11 | 47 | Pfizer | 235 E. 42nd St. 10017 | Pharmaceuticals |
53,150
|
–22.1% |
11 | 12 | 49 | Time Warner | 1 Time Warner Center 10019 | Entertainment |
48,418
|
–39.1% |
12 | 14 | 75 | American Express | 200 Vesey St. 10285 | Diversified Financials |
46,615
|
–64.3% |
13 | 15 | 77 | Hess Corporation | 1185 Sixth Ave. 10036 | Petroleum Refining |
39,474
|
–46.8% |
14 | 16 | 80 | Alcoa | 390 Park Ave. 10022 | Metals |
32,316
|
–69.2% |
15 | 17 | 82 | New York Life Insurance | 51 Madison Ave. 10010 | Insurance: Life, Health (mutual) |
31,924
|
|
16 | 18 | 84 | News Corporation | 1211 Sixth Ave. 10036 | Entertainment |
30,748
|
–55.6% |
17 | 19 | 86 | TIAA-CREF | 730 Third Ave. 10017 | Insurance: Life, Health (mutual) |
29,280
|
|
18 | 20 | 125 | Bristol-Myers Squibb | 345 Park Ave. 10154 | Pharmaceuticals |
28,655
|
–12.3% |
19 | 21 | 139 | Loews Corporation | 667 Madison Ave. 10021 | Insurance: Property and Casualty (stock) |
27,526
|
–43.9% |
20 | 22 | 156 | Bear Stearns | 383 Madison Ave. 10179 | Securities |
19,977
|
|
21 | 24 | 172 | Bank of New York Mellon Corporation | 1 Wall Street 10286 | Commercial Banks |
17,920
|
–41.9% |
22 | 25 | 181 | CBS | 51 W. 52nd St. 10019 | Entertainment |
16,151
|
–69.2% |
23 | 26 | 182 | L-3 Communications | 600 Third Ave. 10016 | Aerospace and Defense |
15,985
|
–30.4% |
24 | 27 | 186 | Colgate-Palmolive | 300 Park Ave. 10022 | Household and Personal Products |
14,798
|
–12.1% |
25 | 29 | 191 | Viacom | 1515 Broadway 10036 | Entertainment |
14,073
|
–54.3% |
NYC = New York City; NYS = New York State; US = United States | |||||||
All data except stock price changes are for either the calendar year ending on December 31, 2007 or the company’s fiscal year ending before February 1, 2008. | |||||||
Stock price changes are for the calendar year 2008. Declines of over 50% are in boldface. Over the same period (December 31, 2007 to December 31, 2008), the 30-stock Dow Jones Industrial Average declined by 33.8% and the Standard & Poor’s index of 500 leading stocks declined by 38.5%. By the end of 2008, the stocks of Bear Stearns (acquired by JPMorgan Chase) and Lehman Brothers (in dissolution) were no longer being traded. | |||||||
Sources: Fortune 500 website and Fortune, May 5, 2008 (Volume 157, number 9), pages F-1 to F-10, F-28, F-34, and F-40 to F-41. Stock price change between December 31, 2007 and December 31, 2008 from "Year–End Review: Markets and Finance 2008", The Wall Street Journal, Friday, January 2, 2009 (Volume CCLIII, number 1), pages R-15 to R-18. |
so?
In the worst economic environment in decades, it would be surprising if all of these countries weren’t in deep trouble. Is your point that New York would face dire trouble if these companies failed? No doubt, but it wouldn’t spell ruin the city – these firms are together only a small fraction of the city’s total employment or production. New York isn’t a company town – losing one or even twenty-five firms won’t sink it.
While finance – the sector in the most danger – is a huge part of New York’s image and income, the region and city are diversified. The places in the biggest danger are smaller cities that have highly focused in finance. You might be surprised that 28% of the jobs in Bloomington, IL are in finance.
Finance is a huge part of New York’s income, but keep in mind that New York’s service industries (advertising, media, design) serve national and international markets. In Bloomington or Charlotte, it’s reasonable to suppose that the service sectors are more locally focused, and therefore more vulnerable to downturns in the basic sector.
I wouldn’t exactly say these
I wouldn’t exactly say these are a small fraction of the city’s economy. And no, I wouldn’t be surprised that Bloomington and Charlotte, or for that matter would be hit hard. I fully expect it. In the case of any city, New York included, what can you point to besides finance, insurance, construction, real estate, trade, advertising, and media. Columbia can’t support the entire city! Neither can hospitals. And I’m not sure what else is left. Take a look at these statistics. Our economy IS post-industrial. Manufacturing is a thing of the past while mining and agriculture have not exactly been strong points of the city in the recent past. I’m not sure what’s left.