In mid February, Amazon was not feeling the love from NY and decided not to go through with a new HQ2 in Queens. While individuals who bought condos to take advantage of possible increases will have to wait longer, Amazon has decided its HQ2 personnel of 700 people in 2019 and by 10 years 25,000 people, they will be working in another city. Perhaps, New Jersey which offered billions to come is back on the table. In the world of economic attraction, bringing in a profitable company to your home is very valuable, a company that could easily take up more office space with jobs that were expected to start around the $100,000 area is even more valuable.
However, local politicians and neighbors were not keen on Amazon coming to Queens and Amazon felt a whole host of criticisms in the economic attraction game. Governments offer money to profitable companies in the form of tax breaks and incentives, should they be? If Amazon hired 25,000 workers who lived and paid tax in New York, there might be an argument it is worth having those workers in New York. The questions would remain why should not both the company and workers contribute to the tax role now? For a large city like New York, other companies could possibly evolve to the same size, but Amazon given their growth in the past seemed to be able to do exactly that and for New York or any other city it seems a lot to give up.
Linking to dividend paying stocks, companies do not exist in an isolated world, where they only do good. At times the company is the lighting rod for all the wrongs the existing system operates. The company itself may have little to do with it, but the people find local supporters and the issue becomes bigger than the announcement. Fortunately profitable companies can wait and have options. In the case of Amazon 238 proposals came forth, Washington DC accepted Amazon; that still leads 236 other very good choices.
There are more questions than answers, till the next time – to raising questions.