We don’t need to play any violins for the slightly less rich one percenters, of course. Their incomes were still more than $2 million in 2009 – enough to get by, even in Manhattan. They make more than 30 percent of New York City’s total income, and their incomes likely staged a comeback since 2009.
Yet the graph proves the increasing importance of the “High–Beta Rich” – a new breed of wealthy whose incomes and fortunes are highly dependent on volatile stock markets. (You can read more about them here).
While we shouldn’t feel sympathy for the High-Betas, we should worry about the impact of all this manic money on our tax rolls and spending. The one percent pay more than 40 percent of New York State’s taxes. And they account for an outsized share of spending.
That means that New York, like many of the richest parts of the country, has placed its future on the most manic segment of our economy. Get ready for a rough ride.
-By CNBC's Robert Frank
Follow Robert Frank on Twitter: @robtfrank