The NY dollar is only equaled to $0.76 compared to the American dollar. Costs to build and live in NY exceed other American cities significantly. I think when people weigh the opportunity costs of living in NY the pros beat the cons. It is expensive, but wages are higher, and because there are no other cities quite like it (being the hub of business/stock market/foreign interaction) people are immediately and inevitably attracted. The fact that the NY dollar has a value decrease is negligible compared to what you are getting in return.
-Hayley O'Neil
3 comments:
I think you are right. Costs are high in New York City. But I think it's safe to say that the resources at one's fingertips are not provided by any other metropolis in the world. Also, the potential for earning more is higher because of the critical masses that filter in and out of the city. Also, public transportation can be factored into the economic equation. There is a reason the city is known for drawing younger people, perhaps not in the best of financial situations. There are many cheap areas of the city, and because it is relatively small and easy to navigate (compared to Los Angeles for instance), it is an attractive option for many people. The high cost of living can effectively be compensated for by convenience and opportunity.
I think this is true, but when you are weighing the pros and the cons, you need to take into account the age group, and the income of the people that you are talking about. For a young person right out of college, it is a great place to be, but living comfortably is usually not an option. For someone who is much older, there are not as many perks for living in the city as there are for the younger demographic.
I agree, and would definitely refrain from taking the depreciated value of the NY dollar as a negative. One could argue that money changes hands daily in New York more then any other US state. Like Omar and Matt said, pay attention to the demographic. The younger generation is that of spenders, seeking instant gradification. I'm not saying younger people burn money, but what I am saying is the enticing and constantly updating product market influences an increase in buying where as twenty years ago these temptations where not as strong.
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