How economic power in the USA is shifting from New York and San Francisco
A major shift is happening within the United States, with new cities on the path to become economic powerhouses. According to a report by Barron's, the economic power is shifting from cities like New York and San Francisco.
The report highlights that cities like Houston, Dallas, Nashville, and Miami are becoming driving forces of economic development in the US.
Stanford historian Niall Ferguson has touched upon how America is becoming multipolar with economic power shifting from the coastal power zones of New York and San Francisco.
“You used to have two coastal power zones where you could live your best life, never really touching down in the red states,” Ferguson told Barron's.
"We now have much more of a multipolar America rather than a bipolar America. That reflects taxes, quality of life, cost of living, the ability to build, and incredibly striking differentials in quality of governance," added Ferguson.
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The report talks about how Dallas and Houston have become USA's fourth- and fifth-largest cities, respectively.
“Dallas is inexpensive energy, massive entrepreneurship, and a very permissive regulatory environment. They've now got more renewables coming out than California, which 10 years ago was insane to think about," said Eurasia Group founder and President Ian Bremmer.
As per the report, Miami is serving as the headquarters of companies which are looking to pursue business in Latin America. Amazon founder Jeff Bezos has also moved to the city. Miami's airport is No.1 in the country for loaded and unloaded international goods.
Nashville has become a healthcare business hub with nearly 500 companies related to the sector, having base there. Houston is marching ahead with its energy economy.
The report notes that as economic power flows to the middle of the US, it could add to the strength of the country as a result of diversification. However, it may also divide the US further on economic, political, and geographic lines.