Couldn't be corporate mass media playing the citizens...nahhh.
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Do you finally understand why government regulations, especially anti-trust laws, are important?
Companies can get so big now, it's easy for them to just put the thumb on the scales.
Competition? Taxes? High wages? Customer satisfaction? A modicum of responsibility or ethics? What's that?
Yep... literally small towns fucking over their local businesses so that the next small town 5 minutes away doesn't get that extra sales tax income (eventually... after the 5 year giveaway expires).
Rest of your post is spot on. This is corporate welfare in that localities are willing to compete using taxpayer money giveaways for a potential long-term tax gain at the cost of hurting their own citizens and businesses, at least in the short term, and some certainly in the long term.
The only solution I see is some sort of law regulating such practices, but I kind of doubt that lobbyists would let something like that pass as long as the Dems and Repubs call the shots.
Outrage is easy. Delayed consequences rarely deter politicians. Legislation restricting government handouts to industry is hard.
Those expressing outrage should carefully consider how this is just a slightly different version of using taxpayer money to subsidize housing for workers whose employers underpay them so they can't afford to live where they work rather than letting the market force said employer to pay enough to attract employees. (e.g. Vail Resorts and "workforce housing")
Because they weren't going to do it at the scale of this deal. While they have a large presence there now, that doesn't mean it would continue. Now Amazon is contractually committed to bring those jobs and construction. If they don't, the cities don't pay the money. They aren't writing an upfront check here. It's paid out over a ~20 year period.
Note how this announcement for NY came after the election. No way would Cuomo want that on his record as the subways slowly die.
Considering that a Grover Norquist-style view of tax policy is now a litmus test for conservatives/Republicans/Libertarians, they should be fine with it. Ostensibly liberal/Democratic states should be ashamed of themselves.
Fox News talking heads would have a conniption of epic proportions if Democrats even suggested passing a law limiting corporate tax incentives nation-wide. It would be a sight to see.
Making $150k doesn't get you far in NYC.
Making $150k gets you a pretty swank lifestyle in many other places that Amazon rejected.
That could have been a big part of the employee incentive for the other locations...locations that actually match the criteria that Amazon literally spelled out it it's own search criteria.
Nah, those kids want to be in big cities that are happening. Not Boise or even Philly. But, bottom line, as always, it's where Bezos wants to spend his time. Like the whole migration of corporations out if NYC last century. The top guys wanted to drive to their golf courses.
He doesn't golf.
That's precisely the thing that leaves me scratching my head. Seems that a NYC location would be a logistical nightmare and crazy expensive, which leaves the ultimate conclusion of some serious backroom deals and under-desk action.
I don't buy it that it's all about the talent pool. Several of my local tech buddies who are software engineers and computer scientists in high positions at good companies have unanimously told me that if they got picked up by Google, Amazon or any of the other tech giants, that they would drop everything and move WHEREVER the company told them they needed them. They could have built in freaking Nebraska for all people care. These companies have no problem attracting top talent. They could have skipped all the tax breaks and built in a cheaper place, that would have also been super easy to build, expand, and move around. I think it's REALLY because Amazon wants the notoriety, attention, and intermingling of being in places like NYC and DC. NYC for the aesthetic appeal (good hipster street cred being around Queens, right?). DC for the elbow rubbing. There's a reason they ended up taking this two-pronged approach. It's super slimey.
If Amazon is the king of marketing and manipulation, then it could easily convince millenials that Detroit is the new New York.
And fucking Nashville?!? Amazon is moving shit to Nashville. If they can convince people to move to Nashville, they can convince people to move pretty much anywhere.
Nashville is pretty cool these days, attracts a lot of young people from the middle of the country, is centrally located, and is home to FedEx, which is a delivery service of Amazon these days. I'd live there if I had to.
I fail to see how Amazon is a leader in marketing, BTW. Maybe super low cost and convenient retail, but, marketing?
NPR pointed out that Amazon chose the financial and political capitals for their new HQs.
I haven't been in seattle in 15 years and I know it has really changed for what many would consider for the worst. I would take seattle over NY or DC in a second as an employee. I would never leave seattle for either DC or NY. There is a lot of technical talent in NY and DC and maybe being in those markets helps them in recruiting talent. I think Amazon wants a seat at the big boy table and being in NY and DC does that. It reminds me of Boeing corporate going to chicago.
Expect a presidential run in 2028.
Re: marketing think about the sheer volume of daily traffic they harbor and their product offerings outside their online marketplace. It's a huge opportunity to gain exposure. They are the leader in website traffic for Retail and E-commerce (only behind Google, YouTube and Facebook overall).
I was a stat line some usatoday or cnn opinion writer who lives there's article. I was surprised as well. Prior to 2013 it was apparently industrial. Still has open real estate for a building like Amazon needs. The handouts suck. The traffic will suck, the trains will suck, and the possible return is very long term for taxpayer.
Amazon needed talent, period. They we're putting this in/near a big city no matter what. Here's the deal build where you find the right land or don't build. You shouldn't get "free" shit just because of where you needed to build anyway.
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Retail and logistics are an integral part of a company's overall marketing strategy. Amazon is a single hub for all associated relations with regards to marketing a product or service (advertising, selling, and delivering products to consumers). Let alone the fact AWS has shitloads of pre-built templates for secure webservers and other cost effective solutions to start a business from the ground up. They also have tons of analytics tools for tracking metrics and creating standardized reports for monitoring product trends. Marketing is much more robust than sales and PR.