Millionaire Exodus!

migration has become a huge political issue in  Nations all around the world polls showed that   a majority of Voters see immigration as one of  the most important issues making it difficult for   politicians to avoid taking a stance as I've  mentioned in Prior videos almost half of the   global population who are eligible to vote will  have that opportunity in 2024 and thus the issue   of immigration has been getting a lot of press  almost everywhere immigration has been a Hot Topic   in Europe since 2015 2016 when over 2 million  people came to the EU mostly fleeing the civil war   in Syria in Britain the debate over immigration  influenced the 2016 vote to leave the EU the   topic has been a huge issue in American politics  two last month Joe Biden outraged the leftwing of   the Democrat Party by in ing one of the toughest  executive orders on immigration ever issued by   a Democrat which allows officials to quickly  remove migrants illegally entering the United   States without processing their Asylum requests  Biden claims this order was given to gain control   of the US Mexican border but in an election year  it was likely heavily influenced by the political   need to counter Trump's charges that the Democrat  party are soft on illegal immigration according to   a recent Associated Press survey roughly 2third  of Americans disapprove of how Biden is handling   border security while a lot of the focus has  been on economic migrants and Asylum Seekers   and the pressures they put on public services a  record number of millionaires are also expected to   relocate in 2024 according to research from Henley  in part Partners a British investment migration   consultancy based in London according to their  research an unprecedented 128,000 millionaires   are expected to relocate this year eclipsing  the previous record of 120,000 set last year   this is a 16% increase from the 110,000 who moved  to a new country in the prepandemic days of 2019   as this chart shows the number of millionaire  migrants has trended up since 2013 having   slowed down temporarily during the global pandemic  likely driven by the difficulty of moving country   during that period Henley and partners defined  these millionaire migrants as individuals with   liquid investable wealth of1 million us or more as  these wealthy individuals migrate they move wealth   expertise and investment which has a direct impact  on the economic Vitality of both the countries   that they are leaving and the countries that  they're moving to most of these people are not   relocating as refugees so where they are moving  from and two can possibly tell us something about   their expectations whether right or wrong  about the attractiveness of these locations   in the coming years so let's look at millionaire  m migration where wealthy people are moving from   and to what causes wealthy individuals to migrate  and the economic consequences for the countries   they leave and arrive in many of 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millionaires  are moving to are the UAE the USA Singapore Canada   Australia Italy Switzerland Greece Portugal and  Japan the country most millionaires are leaving   is China which is only so surprising given the  country's population well that may be an important   factor the number of wealthy immigrants from  China represents a new record outflow according   to Henley General wealth growth in China has been  slowing over the past few years which means that   these outflows could be more damaging than usual  popular destinations for millionaires leaving   China traditionally include Singapore the USA and  Canada with Japan being a new destination on their   list the data shows that 9,500 millionaires will  leave the UK in 2024 a new record outflow for the   country with London expected to be especially hard  hit according to the research the top destinations   for millionaires leaving the UK include Paris  Dubai Amsterdam Monaco Geneva Sydney and Singapore   as well as Retirement hotspots like Florida The  Algarve Malta and the Italian Riviera according   to the report this increase in Britain's wealthy  residents moving abroad is the exceleration of a   trend that began around the time of brexit from  2017 through until last year Britain lost 16,500   millionaires to migration this is a major reversal  for a country that historically acted as a magnet   for Global wealth India comes in at number three  on the list which is somewhat surprising as it's   currently ranked as the fastest growing economy  in the world while India is expected to lose   4,300 millionaires with many moving to the UAE  these outflows are not particularly concerning   as the country continues to produce far more new  millionaires than it LO uses to immigration the   report highlights that the Indian millionaires  who move abroad tend to still retain business   interests and second homes in the country possibly  driven by Capital controls It's Not Unusual for   Indian millionaires to live abroad to enjoy a  better lifestyle safer and cleaner environments   and to gain access to more highend health and  education services the number of millionaires   leaving South Korea has been growing in recent  years and once again a record number are expected   to leave in 2024 popular destinations for wealthy  South Koreans include the USA Australia and Canada   while Russia comes in at number five on the list  the ongoing sanctions and exchange controls make   it both difficult for wealthy individuals to  operate from Russia but also to leave Russia   millionaire outflows from the country Peak leaked  in 2022 according to Henley when over 8,500 High   net worth individuals left this year only 1,000  are expected to leave Russia has seen the largest   outflow of millionaires of any country in the  world in recent years with data suggesting that   as many as 15,000 millionaires left since the  start of the war in Ukraine so where are these   people all moving to well the top Des a is the  United Arab Emirates which attracts large numbers   of millionaires from India the Middle East Russia  and Africa large inflows are this year expected   to come from the UK America is always a popular  destination for those eligible to move there and   its growing Tech dominance is attracting wealthy  individuals from all over the world who want to   work or invest in this sector according to the  report Florida rise as one of the top retirement   destinations for wealthy individuals continues to  grow too it's not just foreigners that are moving   to Florida either Americans have been moving there  too at a record rate making it the fastest growing   state in America by population which is all  the more surprising as it already has the third   largest population in the country according to a  survey run by Vox people say that they're moving   to Florida for the year- round Sunshine the lack  of State individual income tax and they say that   the pandemic created new opportunities for them  in the state additionally many retirees who always   plan to retire to Florida moved up their timelines  in the wake of the pandemic Singapore which is   widely regarded as one of the most business  friendly places on Earth comes in at number three   on the list of places millionaires are moving  to Singapore consistently ranks near the top of   lists like this and is Additionally the world's  fastest growing family Office hub helped Along by   the absence of capital gains tax in the city state  the number of new family offices established in   Singapore Grew From 27 in 2018 to 453 in 2021 and  prominent multinational family offices are said   to be establishing satellite offices in Singapore  as a gateway to access investment opportunities   in the rest of Asia Canada comes in at number four  for migrating millionaires especially those coming   from Asia and Europe Australia then comes in at  number five but the report notes that millionaire   inflows for 2024 are well below the peak levels  recorded in the 2010s when Australia consistently   attracted more than twice as many wealthy migrants  per year the fact that Britain is at number two on   the list of countries that wealthy individuals are  leaving is quite a turnaround as London has always   been seen as a prime location for the world Super  Rich from the 1950s through to the early 2000s   Britain saw large suedes of Rich families arrive  from across Mainland Europe Africa Asia and the   Middle East the fact that it's now the country  with the second highest projected outflow of   millionaires is really the big headline from  this story the UK is projected to lose 9,500   of its high net worth individual population this  year which is more than double the 4,200 lost last   year over 7% of the millionaires expected to move  country in 2024 will be choosing to depart the UK   a rather Grim statistic for the country according  to Dr Hannah White of the institute for government   the UK is one of only three countries in the  top 15 Global wealth ranking to have seen a net   loss in high net worth residents over the last 10  years the other two are Japan and Hong Kong China   White says that these figures reflect a steady  accumulation of factors detracting from the UK's   appeal to high net worth individuals The Hangover  from brexit continues to be felt with the city of   London no longer seen as the financial center  of the world the war in Ukraine and resulting   energy crisis hit the UK worse than any other  country in western Europe according to the IMF   because of the country's over Reliance on Russian  gas the consequent rise in inflation continues to   impact considerably on the cost of living in the  UK she highlights that the impact of external   factors on the economic situation has been  compounded by significant political turmoil with   three conservative Prime Ministers taking power  in quick succession in the second half of 2022 she   says that this domestic instability accompanied by  a lack of policy space to address the structural   factors impeding the UK economy has contributed  to an uncertain investment climate when wealthy   individuals leave a country the country suffers  as its tax base Falls additionally businesses   that cater to these individuals suffer due  to lower demand so what's causing wealthy   individuals to migrate in 2024 according to the  law firm Pennington's geopolitical threats are   high on the list of reasons that cause wealthy  individuals to move abroad they say that the   war in Ukraine and the everchanging relationship  between China CH and the West are pushing wealthy   individuals to reconsider the safest places in  which to base both their families and their wealth   other factors that affect individuals decisions  to relocate are personal security and applicable   immigration and tax rules a 2022 paper from the  European Journal of political economy analyzed   why people from wealthy countries migrate and  found that differences in quality of political   and Economic Institutions significantly impact  migration between oecd nations according to   the study political institutions are more  important than Economic Institutions and   countries with effective institutions have  inclusive and accountable governments and   active civil societies that encourage trust by  promoting the rule of law freedom of press and   Equitable policies among others a paper from the  London School of Economics published this January   argues that the vast majority of Britain's  extremely wealthy people would never leave   the country for tax reasons partially due to the  stigma involved in doing so the paper was based   on in-depth interviews with 35 wealthy British  citizens mostly based in London the interviewees   said that the most important factor driving their  reluctance to myig grade was their attachment to   London's unparalleled cultural infrastructure  Private health services and private schools   along with the ability to maintain key social ties  they also expressed concern about career risks the   administrative burden of moving and familial  upheaval along with a strong attachment to   British culture and values it is however possible  that what people say in interviews is different   to how they actually behave in real life the paper  reports that many were concerned the top tax rates   in the UK were currently too high and would rise  further and some said that they would not rule   out tax migration but only if the political and  economic conditions in Britain change dramatically   a return to the top tax rat scen in the 1970s are  a Jeremy Corbin style government were frequent   cited as Redline conditions a paper by Andre  salamano called Global mobility of the wealthy   and their assets found that 43% of the world's  millionaires are based in the United States and   that given the history of instability and the  potential for confiscation in emerging economies   and developing countries whether real or imaginary  the wealthy from these countries seek to establish   their residence in high income Nations and special  jurisdictions helped by the proliferation of   investment migration schemes Solano found that  high net worth individuals consider personal   safety availability of highquality health  services favorable tax treatment protection of   wealth property rights educational opportunities  for their children visa-free Mobility to third   countries and Cosmopolitan settings and good  transport connections when choosing a country to   establish residence in he found that historically  wealthy individuals have migrated or moved country   temporarily for at least four reasons in response  to new opportunities for profit abroad to enlarge   the scope of their work and attain International  recognition to escape from political religious or   ethnic persecution and to seek to Shield their  assets from taxation Financial uncertainty and   confiscation policies factors which induce  the rich and to some extent the upper middle   class to leave their home countries either on  a permanent or temporary basis include factors   such as economic insecurity cumbersome taxation  systems lack of adequate protection of property   rights political uncertainty austerity policies  depressed asset prices violence and terrorism a   paper by Peter Hall of the University of New South  Wales analyzed the locational choices of skilled   scientific and technological knowledge workers to  understand why brain drains occur should countries   worry about them and if government policy in  particular R&D policy makes a difference to   migration flows he found that scientific  workers were influenced by International   income differentials in making location decisions  but that they were also sensitive to the long-term   prospects of being able to study the problems that  they find interesting he argues that this is both   a warning and an opportunity for governments  interested in attracting and keeping these   workers he found that increasing total government  R&D spending does raise wages and attract these   workers but he found When comparing Germany to the  United states that the visibly deregulated labor   market in the United States allowed for greater  career-long flexibility allowing researchers to   move between interesting projects which was more  attractive to these workers than the similarly   well-paid but longer term employment contracts  required by law in Germany that can limit movement   even within a firm it appears that flexibility  matters as much as pay in attracting and keeping   highly skilled workers while migration can be  politically sensitive an oecd study released this   week shows that the average number of children  per woman across the 38 most industrialized   countries has fallen from 3.3 in 1960 to 1.5 in  2022 which is below the replacement level of 2.1   where a country's population is considered to be  stable the paper warns that this lower birth rate   could have large effects on economic growth and  prosperity in the developed world and thus that   immigration into these countries will be needed  in the coming years when combined with the fact   that people are living longer than ever before  these aging populations can be expected to put   pressure on public finances as there are fewer  workers paying taxes and supporting retirees   the great demographic reversal by goodart and  praon argues that a skewed ratio of consumers   to workers in a society is also likely to lead  to inflation with a UK election coming in under   two weeks opinion poll showed that migration  is one of the biggest issues concerning voters   Rishi sunak has come under pressure from some of  his party to meet a conservative pledge to slash   net migration to Britain economists however are  warning that delivering on this pledge could have   serious consequences for the economy net migration  to the UK fell 10% last year but inflows are still   well above historical averages according to  the office for National statistics the number   of international students signing up to study  at UK universities has declined 57% year onye   as of this may after Rishi Sak put restrictions  in place on education visas University leaders   have argued that these visa restrictions will  harm British universities who rely on foreign   student fee income for more than a fifth of their  revenues this is a big deal as foreign students   pay much higher fees than domestic students and  their disappearance will hurt University funding   a letter signed by Business Leaders warned that  reducing the talent pool available to high within   the UK by reducing student visas would harm their  ability to grow their businesses and to invest   further in the UK as hot of a topic as migration  can be Ian golden of Oxford University wrote in   his book the shortest history of migration that  given the increase in the global population   the percentage share of people on the move has  barely changed over the years migration can be   quite a struggle for those who move country  and is not usually a decision taken lightly   even the millionaires being discusted can find  themselves struggling to do as well as they   had done at home once they no longer have the  same access to business networks that took them   years to cultivate data from the eu's labor force  survey found that nearly half of all migrants with   degrees work in roles that they are overqualified  for compared with less than a third of native   workers despite high demand for highly skilled  workers migrants with degrees are also unemployed   at nearly double the rate of native workers this  is often driven by a lack of recognition of their   foreign qualifications it's difficult to know what  to make of all of this data an ft piece this week   by Janan ganes highlights how politicians can  misread public opinion and this can lead to   policy decisions that make no sense at all in his  article he argues that people falsely blamed the   rise of populist ideas in the US and the UK in  2016 on their belief that free market economies   had been allowed to run wild he points out that  recent European elections show that there's no   relationship between a country's exposure to  Market forces and its degree of populist anger   the hard r is flourishing in Social democracies  and in more Market centered ones in regions that   are poorer than the nation's average such as the  German East and in regions that are much richer   such as the Italian North in countries that  have experienced government Cuts Like Britain   and in ones that have spent at will like the  United States in places where manufacturing has   collapsed over the decades like in Britain  and the US and in places where it hasn't   like in Germany he argues that the belief amongst  Democrats in the United States that neoliberalism   had led to the election of trump caused the  current Administration to believe that America   wanted or needed a status economic transformation  which led to huge government spending which only   ended up implicating Biden for inflation the data  shows that on the eve of the pandemic economic   confidence was at a high in the United States  and satisfaction with the way things are going   in the US was where it was in the mid 1990s and  mid 2000s there was no ground swell of populist   anger that had to be dealt with Janan points out  that Trump emerged after Obamacare and the bank   bailouts two of the largest Federal interventions  in private economic life since LBJ was in office   Trump's precursor he says was the party whose  grievance was too much government not too little   the problem with reading too much into news  reports of anger over immigration is that these   news reports which are often just driven by the  need to sell papers can cause knee-jerk political   responses that are not beneficial to the nation  in question countries need to carefully think   through their immigration policies in order to  balance their demographics and attract workers   with the skills needed by employers this needs  to be done sensibly rather than being driven by   leaders who feel they have to make big changes  whether right or wrong in order to satisfy an   angry mob that possibly doesn't exist at all  according to the IMF the foreign born labor   force in the United States is 9% higher today than  it was at the start of 2019 and this increase in   the number of workers means that the US economy is  now expected to be 2% larger over the next decade   than it previously been forecast The Economist  argues that this influx of new workers helps   explain the country's strong economic growth but  that immigration's impact goes beyond its effect   on GDP it extends to things like inflation the  cost of housing living standards the availability   of school places and government budgets all all  of these things need to be considered together to   come up with sensible immigration policies if you  found today's video interesting you should watch   this one next don't forget to check out our  sponsor ODU who helped me with my new website   using the link in the video description have a  great day and I'll see you in the next video bye

Channel: Patrick Boyle

Views: 235,497

Keywords: finance, trading, patrick boyle, on finance, cfa exam, kings college london, business school, quantitative finance, financial derivatives, personal finance, investing, investments, stock market, corporate finance, wealth migration, millionaires leaving the uk, brexit, immigration, Millionaire Exodus!

Id: z6DSENMFVmg

Length: 28min 50sec (1730 seconds)

Published: Fri Jun 21 2024