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Amazon and New York "break up"

Last month, on the Valentine's Day, e-commerce giant Amazon announced that it would break up with New York and no longer consider setting up its second headquarters in Queens.

More than a month later, Arlington County, Virginia, sent Amazon an "engagement gift" - a tax benefit worth about $51 million. The amount is not large, but the gift is light and affectionate. This money is a testimony to the marriage between Arlington and Amazon.

The mood of the Arlington government can be imagined: Amazon's settlement will provide 50,000 jobs to the local area and 50 billion US dollars in tax revenue in the next 20 years.

For this place that is famous for its national cemetery and where the location is not particularly good, the arrival of Amazon is tantamount to the favor of the god of wealth. According to the previous plan, Arlington County can only be divided into half of Amazon's second headquarters. Today, Amazon and New York are noisy, and Arlington enjoys its benefits.



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New York and Amazon "break up"

In November last year, Amazon CEO Bezos announced that Amazon will build its second headquarters, and more than two hundred cities in the United States are excited. Some media said that they waited for Bezos' selection as they waited for the "beauty contest." In order to win this marriage, each city comes with a "dowry." New York announced a $3 billion tax plan, and the mayor and governor came out together. The governor joked that Amazon is willing to come and I am willing to follow it.

Bezos later selected New York and Arlington, which is not unrelated to the location advantage. New York is the largest city in the United States, a consumer center in the United States, with ample talent reserves. Although Arlington is a small city, it is very close to Washington. It is suitable for Amazon, a giant that often deals with the government.

But when Bezos announced that the second headquarters of Amazon was spent in New York and Arlington, it was not ecstasy, but anger and protest, which was mainly from the civilians and the bottom.

The reason is simple. When Amazon comes, it will bring a lot of high-paying jobs. If there are more people, the city will be upgraded and upgraded - Queens will no longer be suitable for the poor.

Some intellectuals sympathize with the people at the bottom, and they refer to the renovation and upgrading of the leading cities of large companies as “Gentry”. After the skyscrapers and commercial districts were built, the city became dull and cold, lacking human touch, the community disappeared, and the vendors were gone. The café cafes of different sizes were replaced by the same Starbucks and McDonald's. What comes with it is that it is not suitable for the poor to survive. So they joined forces to boycott Amazon.



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At the beginning, Amazon also thought about negotiating compromises. For example, it plans to invest US$5 million to build a vocational training center in the country to provide vocational training for low-income and low-education people.

But the concession did not come to the end. Okasio Cortes, a hot political star from the New York State Constituency, publicly stood up and condemned that Amazon’s settlement in New York would displace people. Amazon was not good, so it quickly issued a statement considering the withdrawal from New York State.

When the Amazon left, the mayor and the governor were greatly embarrassed. They even stood up and condemned that Amazon was "abusing corporate power" and hurting workers. As a result, Amazon naturally decided to decide.


New Yorkers regret it

In my opinion, this "breakup" drama is completely a farce. For the economic development of New York, it is a tragedy - New York was kidnapped by a few people and missed a good opportunity for development.

The entry of large companies is equivalent to an increase in local productivity. Employment will increase and wages will increase. The company may not hire local workers, but high-paying jobs will stimulate consumption and drive related employment. Low-educated people may not be able to enter Amazon, but are likely to take on the job opportunities of large companies. As employment increases, cities will be more dynamic and good for everyone.

The rise in rents is indeed part of the chain reaction. But the normal market reaction is to increase housing supply to accommodate more people. The reason why the New York rental market has a significant squeezing effect is that the housing supply is controlled – New York State is the most heavily populated area in the United States, and rents are regulated.



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Do New Yorkers don’t understand this? Maybe not. The protests of the poor are normal. Why don’t anyone stand up to support Amazon? I think the very important reason is to rip off.

Unexpectedly, Amazon does not eat this set, choose to break up on Valentine's Day.

When you are in love, both sides must exercise restraint. If one side is pressing hard, it is likely to face the embarrassing scene of chicken flying eggs and cooked ducks flying to the sky. This time it was the turn of the New Yorkers to regret it. In addition to the polls showing 67% of New Yorkers against Amazon's departure, there is another performance: Ocassio Cortes's support rate is falling. 38% of respondents believe that she played the role of “villain” in the incident, and only 12% thought she was a “hero”.

Affected by the New York turmoil, this time Arlington officially welcomed Amazon to settle in, it is particularly positive and enthusiastic. On March 19, when the local parliament deliberated to give Amazon more than 50 million US dollars in tax incentives, the protests outside continued, and the vote still achieved a 5:0 result. At this time, I feel a sigh of relief, maybe not Amazon, but a lot of Arlington people.