Miami’s Economic Boom Paves Way to Become ‘Switzerland of America

2024-05-26

The ‘Magic City’ could be competing for Manhattan’s mantle as the business center of the U.S., at least according to Mayor Francis Suarez and several notable entrepreneurs and investors. 

From New York to Florida

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Move over New York – the new financial center and biggest haven for the nation’s ultra-wealthy could be shifting from north to south if the mayor of Miami has anything to do with it. 

Miami Mayor Shares Big Ambitions 

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Francis Suarez, who has been the mayor of Miami since 2017, is aiming to establish Miami as a business haven, thanks to an enormous increase in wealth in the city over the last five years.

America’s New Financial Hub

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In his eyes, the world needs another financial hub, and Miami is poised to be America’s best candidate. 

“We Need More Than One Switzerland”

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“The world is expanding in terms of financial and economic activity. The world is saying, ‘OK, we need more than one Switzerland . . . We need one in America,’” he said in an interview with the Financial Times. 

The “Capital of Capital”

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“Miami is emerging as the Singapore or Switzerland of this new iteration,” he continued. “I call it the ‘capital of capital.’”

Pandemic Influx

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Much of the recent surge in wealth in the city came during the pandemic when wealthy individuals and businesses flocked south to take advantage of the city’s economic benefits.

Corporate Perks

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The perks included zero state income tax, lower corporate income tax rates, and looser COVID-19 regulations. 

Long List of New Residents

Many notable individuals and companies, including Jeff Bezos, Carl Icahn, David Blumberg, and the hedge fund Citadel, have chosen to reside or establish their headquarters in the city.

75% Increase in Millionaires

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The number of millionaires in the city has also increased by 75% in the last ten years. While broader comparisons to Singapore and Switzerland have yet to be seen, there’s no denying that the city is attracting enormous wealth, with the potential for much more.

Safe for Banking and Finance

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Suarez referred to Switzerland in particular as “a place where banking and finance feel safe doing business,” a position that he sees as aspirational for Miami.

International Peers

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But he also compared the city’s upward financial trajectory to cities like Abu Dhabi, Dubai, Riyadh, and Doha. Miami is also currently the fourth fastest-growing metro area in the US.

Citadel Founder Praises Miami

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Suarez is far from the only public figure who has been singing the city’s praises, as well as its financial potential. Ken Griffin, the CEO and founder of Citadel, has also spoken effusively about the city.

The Future of the Country

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In Griffin’s eyes, Miami is the future of the country, and the most likely contender to take New York’s place as the U.S. capital of business and finance.

“It’s New York’s to Lose”

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“New York is the financial capital of America today, and it’s New York’s to lose,” he announced at a conference in Miami in November last year.

Worlds Top Talent

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“The density of talent both in financial services and just writ large in New York City is amongst the top in the world,” Griffin continued. “It’s a very unique and powerful city, both in the United States and around the world.”

50 Years From Now

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“[But] we’ll see how big Wall Street South becomes,” he said. “We’re on Brickell Bay, and maybe in 50 years it will be Brickell Bay North how we refer to New York in finance.”

Chicago to Miami

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Griffin shifted the headquarters of Citadel, a major multinational hedge fund, from Chicago to Miami in 2023. 

Vibrant and Growing

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“Miami is a vibrant, growing metropolis that embodies the American Dream,” he told Citadel employees when making the announcement.

“A City Rich in Diversity”

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“I am excited to have recently moved to Miami with my family and look forward to rapidly expanding Citadel in a city so rich in diversity and abounding with energy.”

Musk Chimes In

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Even Tesla and X CEO Elon Musk has praised the city’s growth potential. Despite moving his operations to Austin, Texas, the tech tycoon recommended Miami as the next best option for Americans who want “good networking opportunities” and “plenty to do.”

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.