Cities seeing inflows include Auckland, Dubai, Montreal

[_mtler_]

https://www.bloomberg.com/news/articles/2018-01-31/rich-folks-are-fleeing-london-and-lagos-wealth-report-shows

Rich Folks Are Fleeing London and Lagos, Wealth Report Shows

January 30, 2018, 7:28 PM EST Updated on January 30, 2018, 10:19 PM EST

• New taxes, Brexit are factors in first big outflow from London
• Cities seeing inflows include Auckland, Dubai, Montreal

Wealthy Londoners are leaving the city as new taxes make it expensive to inherit and invest, and as Brexit prompts rich Europeans living in the U.K. capital to return home.

This puts the British financial hub in the same category as Lagos and Istanbul, which are also seeing net outflows of rich people, according to the Global Wealth Migration Review published this month. About 5,000 high net-worth individuals left the U.K. during 2017 and only about 1,000 arrived, the report shows.

 

“Over the past 30 years, the United Kingdom has been one of the biggest recipients of migrating HNWIs,” the report said. “However, this trend changed in 2017 when the country experienced its first major HNWI net outflow.”

Wealthy Exodus

Rich people are opting to leave Lagos and London for Auckland and Dubai

Losing wealthy individuals is normally a sign of trouble in the political economy of a country. Rich people are often the first people to leave, because they can -- unlike the middle class or the poor.

Cities that saw large inflows of HNWIs include Auckland, Dubai, Montreal, New York, Tel Aviv and Toronto, the report showed.

New World Wealth says it focuses only on HNWIs who have truly moved -- that is, those who stay in their new country for more than half the year. China and India continue to dominate countries that the rich are moving out of, but once the standard of living improves several wealthy people will probably return, according to the report.

Moving Out

Rich Chinese and Indians opt for the U.S. or Canada, Russians also choose the UK and CyprusMumbai -- India’s financial hub -- is expected to be the fastest-growing city in terms of increase in wealth over the next decade. Wealth in the entire country is predicted to triple in the period to about $25 trillion followed by China’s 180 percent increase to $69 trillion, according to the report. The U.S. will expand 20 percent but still tops the holdings list with $75 trillion of wealth.

Total private wealth held worldwide amounts to about $215 trillion, according to the report. While the average person has net assets of $28,400, there are some 15.2 million HNWIs in the world, defined as those with net assets of $1 million or more.

Russia is the most “unequal” country, where 24 percent of total wealth is held by billionaires. Japan is the most equal, with only 3 percent controlled by billionaires.

 

Modifié 18 février 2018 par _mtler_

[_mtler_]

Anyone able to download the report?

[Cataclaw]

Citation

Rich people are often the first people to leave, because they can -- unlike the middle class or the poor.

This is only true if there is some general reason to leave that affects everyone equally. High taxes on the rich don't affect everyone - just the rich.

[vivreenrégion]

il y a 14 minutes, Cataclaw a dit :

This is only true if there is some general reason to leave that affects everyone equally. High taxes on the rich don't affect everyone - just the rich.

si une ville perd des riches, elle perd aussi l'argent qui vient avec, donc ça nuit aux pauvres indirectement. Les villes vont se retrouver avec moins de revenus.

[Cataclaw]

il y a 5 minutes, vivreenrégion a dit :

si une ville perd des riches, elle perd aussi l'argent qui vient avec, donc ça nuit aux pauvres indirectement. Les villes vont se retrouver avec moins de revenus.

Ça dépendrait des chiffres. Si j'ai 10 riches qui paient 1 M$ chacun en taxes, et une nouvelle taxe vient doubler ce revenue, et je perds 2 riches à cause de la taxe, mon revenue augmente quand même à 16 M$ versus 10 M$.

I was just pointing out an error in thinking that was in the original article. Whether I would be for or against any tax would depend on the specific details of that tax.