For over a year, cities all over the United States, as well as in Canada and Mexico, have been in a battle to get Amazon’s attention. Two-hundred and thirty-eight entries from states, cities and towns were submitted since the announcement of the search for Amazon’s HQ2, all offering the online retail giant millions of dollars in tax incentives. Local officials all over North America had immense excitement about the possibility of bringing many new, high paying jobs to their city. In the end, Amazon chose to split its second headquarters between two areas that already have the greatest number of Amazon employees other than Seattle and the Bay Area – Long Island City, NY (just outside of Manhattan) and Arlington, VA (just outside of Washington D.C.) The decision is controversial, and has local taxpayers wondering whether or not the benefits outweigh the downsides of the company’s presence.
Amazon has committed to generating 25,000 new jobs in each city, with an average salary of more than $150,000 for those jobs. They have also committed to building community infrastructure and to donate space for a new public school and ““for a tech startup incubator and for use by artists and industrial businesses.” There are many potential benefits on the local economy and individuals as a result of so many new jobs and an investment in the community. Additionally, college students in the surrounding areas are enthusiastic about the number of diverse, high-paying future job opportunities.
But many concerns are also being raised, particularly surrounding the headquarters in Long Island City, in the Queens neighborhood outside of Manhattan. Alexandria Ocasio-Cortez, the representative-elect of New York’s Fourteenth Congressional District said on Twitter, “The idea that [Amazon] will receive hundreds of millions of dollars in tax breaks at a time when our subway is crumbling and our communities need MORE investment, not less, is extremely concerning to residents here.” Others have also openly criticized the use of government money for a private corporate government, when that money could be used for so many other things.
There are additional concerns over housing prices rising outside of Long Island City and Arlington. According to senior economist at First American, Odeta Kush, home prices in Seattle have jumped 35 percent since Amazon opened its doors. In the last five years, that jump was 73 percent for homes and 31 percent for rent prices, according to Zillow data.
In places like New York City and Washington D.C., where home and rent prices are already some of the highest in the U.S. these statistics are extremely concerning to many residents. However, some analysts believe price trends will not mirror Seattle’s because of the already established housing markets in the two cities.
As plans for the split HQ2 are being finalized, everyone seems to have an opinion on the decision – including SNL writers.
The recent announcement is another example of how a company that started out as an online bookstore, has become such a powerful force in our society. Amazon has an economic impact that cannot be ignored, and has even manage to seep into popular culture,
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