On the flip side of the coin we can also expect living in the city to become more expensive. The influx of labor may also make the city more congested and commuting times longer. The host city will also give tax benefits to Amazon, but there's a trade off right there- the city may have to cut spending in other services or raise taxes elsewhere.
However, looking at Seattle's example it's safe to say that this will be beneficial to the economy.
https://www.nytimes.com/2018/01/18/technology/amazon-finalists-headquarters.html
http://money.cnn.com/2017/10/27/technology/amazon-hq2-housing-costs-seattle/index.html
1 comment:
While following the Amazon HQ2 news, I've noticed that in an attempt to attract Amazon, many cities loosen tax laws and/or other regulations. While having such a large company like Amazon in a city should theoretically be beneficial, I wonder what the actual outcome will be, especially if the "winning" city relaxes taxes and regulations enough that citizens already there are effected. On a related note, right after the tax bill was passed, Apple announced that they were planning to hire 20,000 new people and open a second headquarters (same as Amazon) in the USA. Since this very public "city-search" hasn't happened with Apple, I wonder how much of Amazon's search is a publicity stunt and how much is actually necessary for procuring the best deal for it's business.
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