Citing a recent corporate tax increase, General Electric has announced plans to leave Connecticut and move its corporate headquarters to Boston. But that’s not the only reason it’s moving, writes Aaron Renn for Newgeography.
In the past, New York City was a dangerous city on the verge of bankruptcy, which caused many Fortune 500 companies to leave for New Jersey and Connecticut, including GE in 1974. Now, however, cities are back and highly skilled workers prefer to live in metropolitan areas, writes Renn.
Starting in the 1990s, technology radically
transformed the business world and is now a major industry in its own right.
The financial industry was deregulated. Globalization drove demand for new
types of business services, reinforcing the need to stay on top of a constantly
shifting landscape. People with advanced, specialized knowledge are the ones
who help companies innovate now. These employees work in highly interactive
ways that benefit from clustering together—disproportionately in urban areas
like New York, Chicago, and Boston.