Amazon's second headquarters may create jobs, but it will also drive inequality and housing crises
Amazon's second headquarters may create jobs, but it will also drive inequality and housing crises
Amazon's hq2 may come with a social sacrifice
major cities the world over are in a tough position a trend of increased income inequality has
created bifurcated city sherek ties by intractable housing crises and gentrification
The matching political trend has been for local politicians to try to attract new industries with the goal of using that
Prosperity to bridge the growing divide or so they say
Amazon's recent announcement that it's looking to build a second headquarters
which it calls HQ to to rival its sprawling footprint in Seattle plays right into the hands of these mayor's who are
Hoping to boost their city's economic growth yet by trying to attract a company like Amazon
They are not taking an account the good chance that the problems faced by their cities will only multiply
in this request for Proposal Amazon lists a number of demands for cities looking to host its HQ -
Including a population of more than 1 million a development ready urban location
on-site connections to mass transit and proximity to major highways and an International Airport
However, there is another very important requirement that will trump the others in the end
Despite the fact that Amazon is the fourth largest
Company in the world by market cap its choice of where it locates its offices and warehouses
Depends largely on the incentives that states and municipalities are willing to dish attend the competition for HQ - will be no different
Mega deals and recent years have granted massive tech firms an average of six hundred and fifty eight thousand per job created
And there are serious questions about whether these large subsidies are justified
Why is it that Amazon?
Google Apple and other big tech firms, so doggedly pursue tax breaks and subsidies when they're already some of the largest companies in the world
Often with plenty of money in the bank
It's not like they really need it though their desire to reduce their overall tax burden seems to fall more in the realm of
ideology than necessity as
Illustrated by the convoluted tax evasion schemes they helped pioneer, and it's not even that they already have plenty of money
Governments on all levels need to consider the kind of incentives
They're creating by giving so much to companies that are increasingly and rightfully perceived to be quasi monopolies and may find
themselves in the crosshairs of antitrust regulators under a future Democratic administration in the US and possibly much sooner in Europe
Does it make sense to subsidize the growth of such large firms when small businesses increasingly?
Struggle to survive in an economy with such high levels of consolidation
One only needs to look at the cities in which these massive tech companies are
Currently headquartered to see the effects Eve had on the urban environment, and they're not positive
Any mayor looking to win Amazon's HQ - really needs to consider the serious social implications that will come with it
But their statements suggest that they are focused only on winning the prize and that doesn't bode well
Crises in the tech heartland all nature cities are experiencing a series of issues related to affordability
Displacement and inequality, but these crises are most acute in the cities that have become hubs for the tech industry
There's little reason to believe that the same won't also happen in whichever city Amazon gets the biggest tax break in exchange for
Building HQ - San Francisco has become the poster child not only for this wave of technological
development, but also for the housing crises that are sweeping major cities the city boasts the highest median income in the country at
Ninety six thousand six hundred and seventy seven thanks to the high wages of those who work at the major tech companies
Yet, that doesn't mean that everyone's doing great
Simply because incomes are higher
Those incomes are necessary because the prices in the Bay Area have climbed to outrageous levels the average house costs
1.25 million and astronomical housing prices are pushing out not only
Service workers and teachers who can no longer afford to live in the city
But also some of the tech workers who are earning those high salaries and are struggling to get by and
Thoughts all without the presence of Amazon, which hires more workers than most tech companies
And thus takes up a lot more space in Seattle Amazon occupies 8.1 million square feet of office space across
33 buildings
taking up almost 20% of
city's prime office space and it expects to cover more than 12 million square feet in more than 40 buildings by
2022 its footprint has brought a lot of talented people to Seattle
But like in San Francisco that has also meant a shortage of housing and skyrocketing prices
Even though Seattle's median income is approaching 80,000
It has the largest homeless population of any major American city
its housing market is the hottest in the country with prices rising faster than anywhere else and
despite another nine thousand apartments being put on the market rent increases continue to outpace those in most other metro areas and
It's not just housing thoughts experiencing steep increases amazon's endless pursuit of office space
Even though it already uses more than the next 43 companies combined is causing those prices to soar as well in many ways
Seattle is following close behind, San Francisco
Thanks to Tech's growing presence in the city all the major cities across
North America that are presumed to be in serious consideration for hq2 are already
Experiencing high levels of inequality and unaffordable housing costs, but whichever Amazon chooses will see those problems become more acute
Incentives aside that will be the true human cost of attracting Amazon
Mayors looking to bid for Amazon's HQ to need to think long and hard about the kind of city. They're trying to create
Amazon's presence will benefit some skilled workers
But it will make many more worse off as hq2 places strong upward pressure on housing prices
rents and even office space for other businesses trying to establish themselves and
As Amazon widens the divide and worsens the social crisis it will be paying less tax toward abating them than other businesses
Due to its demands for subsidies and tax rebates
Attracting Amazon will come with a social sacrifice and mayor's need to put more thought into whether they're ready to make it
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Pays sales tax which is not true and so hurts other retailers
part of a pattern by the former businessman in reality television host of periodically turning a desire on big American
Companies since he took office in January
Daniel Ives a research analyst at GBH insights said Trump's comment could be taken as a warning to the retail giant
However, he said he was not concerned for Amazon. We do not see any price hikes in the future however
That is a risk that it Amazon is clearly aware of and it is building out its distribution system aggressively
He said Amazon has shown interest in the past in shifting into its own delivery service
including testing drones for deliveries in
2015 the company spent eleven point five billion on shipping
46 percent of its total operating expenses that year Amazon shares were down
0.86% to one thousand one hundred seventy five point nine zero by early afternoon
overall US stock prices were down slightly on Friday millions of parcels
Satish Jindal president of ship matrix incorporated, which analyzes shipping data
Disputed the idea that the postal service charges less than United Parcel Service
Incorporated UPS n and FedEx Corp EV dxn the other biggest players in the parcel delivery business in the United States
Many customers get lower rates from UPS and FedEx than they would get from the post office for comparable services
He said the Postal Service delivers about 62 percent of Amazon
Packages for about 3.5 to 4 million a day during the current peak year in holiday shipping season
Jindal said the seattle-based company in the post office have an agreement in which mail carriers take Amazon
packages on the last leg of their journeys from post offices to customers doorsteps
Amazon's no
two carrier is UPS at
21% and FedEx is third with 8 percent or so according to Jindal
Trump's comment tapped into a debate over whether postal service pricing has kept pace with the rise of e-commerce
Which has fluttered the mill with small packages private companies like
UPS have long claimed the current system unfairly undercuts their business steve grot a spokesman for UPS
Noted that the company values its productive relationship with the post service, but that it has filed with the Postal Regulatory
Commission its concerns about the Postal Service's methods for covering costs
representatives for Amazon the White House
The US Postal Service and FedEx declined comment or were not immediately available for comment on Trump's tweet
according to its annual report the Postal Service lost
2.7
4 billion this year and its deficit has ballooned to 61 point eight six billion while the Postal Service's revenue for first-class mail
Marketing mail and periodicals is flat or declining
Revenue from package delivery is up forty-four percent since two thousand fourteen to nineteen
point five billion inches the fiscal year ended September 30th
2017 but it also lost about 2 billion inches revenue when a temporary surcharge expired in April 2016
According to a Government Accountability Office report in February the service is facing growing personnel expenses
particularly seventy three point four billion inches unfunded pension and benefits
Liabilities the Postal Service has not announced any plans to cut costs by law the Postal Service has to set prices for
Package delivery to cover the costs attributable to that service
But the Postal Service allocates only 5.5 percent of its total cost to its business of shipping
Packages even though that line of business is twenty eight percent of its total revenue
addition
Trump targets Amazon in call for postal service to hike prices
US President Donald Trump on Friday targeted online
retailer Amazon in a call for the country's Postal Service to raise prices of shipments in order to recoup costs
U.s.. President Donald Trump on Friday targeted online retailer Amazon in the call for the country's Postal Service to raise prices of
shipments in order to recoup costs
Why is the United States Post Office which is losing many billions of dollars a year while charging?
Amazon and others so little to deliver their packages making Amazon richer and the post office dumber and poorer
Charging much more jump wrote in the post on Twitter
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The interview that there had been any collusion with Russia
US intelligence agencies believe Moscow tried to tip the presidential election in favor of mr.
Trump a charge denied by both Russia and the US president mr.. Trump has labeled mr.. Mueller's
investigation a witch-hunt while other Republicans accuse it of bias
Mr.. Trump repeated his allegation that Democrats had invented the issue as a hoax as a ruse as an excuse for losing an election
The president said he was not concerned about when the inquiry would finish as he had nothing to hide
But he said it makes the country look very bad, and it puts the country in a very bad position
So the sooner it's worked out the better it is for the country
He was repeating his comments from May that the probe was hurting the u.s.. Terribly mr.
Trump said the matter had angered his supporters adding my base is stronger than it's ever been on
other areas in the interview mr. Trump
Again condemned the Democrats for not taking a bipartisan approach to legislation
Said he had to endorse the defeated candidate Roy Moore in the Alabama
Special election as that was what the head of the Republican Party had to do
again criticized Attorney General Jeff Sessions for accusing himself from the Russia inquiry
Said he believed the media would become more favorable to him as their ratings would go down the tubes if he was not in office
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2,000 years ago when he worked at the president's, New Jersey Golf Club and was trying to make the PGA Tour mr.
Trump asked him how much he made playing on the professional circuit?
It's like three million mr. Herrmann said which to him is like making a billion because he doesn't spend anything mr.
Trump joked ain't that a great story
In the interview the president touted the strength of his campaign victories in his accomplishments in office including
Passage of attacks overhaul this month, but he also expressed frustration and anger at Democrats who he said refused to negotiate on
Anything, but who dost do anything he dosent do mr.. Trump said hey, let's get together
Let's do bipartisan. I say good. Let's go then you don't hear from him again nonetheless
Mr.. Trump said he still hope Democrats will work with him on bipartisan legislation in the coming year to overhaul health care improve the country's
Crumbling infrastructure and help young immigrants brought to the country as children
Mr.. Trump disputed reports that suggest that he does not have a detailed understanding of legislation saying I know the details of taxes better than
Anybody better than the greatest CPA. I know the details of health care better than most better than most
Later he added that he knows more about the big bills debated in the Congress than any president
That's ever been in office the president also spoke at length about the special election this month in Alabama
Where were yes more the Republican candidate?
Lost to a Democrat after being accused of sexual misconduct with young girls including a minor when he was in his 30s
Mr.. Trump said that he supported mr.. Mores opponent in the Republican primary race because he knew mr.
More would lose in the general election, and he insisted that he endorsed mr.
More later only because I feel that I have to endorse Republicans as the head of the party
Mr.. Mueller's investigation appears to be moving ahead despite predictions by mr.. Trump's lawyers this year that it would be over by Thanksgiving mr.
Trump said that he was not bothered by the fact that he does not know when it will be completed because he has nothing to
Hide mr.
Trump repeated his assertion that Democrats invented the Russia allegations as a hoax as a ruse as an excuse for losing an election
He said that everybody knows his associates did not collude with the Russians
Even as he insisted that the real stories are about Democrats who worked with Russians during the 2016 campaign
There's been no collusion
Going to be fair mr.. Trump said of mr.. Mueller in recent weeks
Republican lawmakers have seized on antitrump texts sent by an FBI investigator who was removed from mr.
Mueller's team as evidence of political bias at a hearing this month
representative Jim Jordan
Republican of Ohio said that the public trust in this whole thing is gone, although mr.. Trump said he believes mr.
Mueller will treat him fairly mr.. Trump raised questions about how the special counsel had dealt with the lobbyists and Tony Podesta mr.
Podesta is the brother of mrs.
Clinton's campaign chairman John Dee Podesta and Tony Podesta is under investigation
Forward his firm the Podesta group did on behalf of the client referred to it in
2012 by Paul Manafort the former Trump campaign chairman
Whatever happened to Podesta mr
Trump said they closed their firm they left in disgrace the whole thing and now you never heard of anything mr.
Trump tried to put distance between himself and mr. Manna fort who was indicted in October the president said that mr.
Manna for whom he called very nice man and an honorable person had spent more time working for other candidates and presidents than for him
Paul only worked for me for a few months mr.
Trump said Paul worked for Ronald Reagan
His firm worked for John McCain worked for Bob Dole worked for many Republicans for far longer than he worked for me
And you're talking about what Paul was many years ago before I ever heard of him
He worked for me for what was it three and a half months mr.
Trump said it was too bad that Jeff Sessions the Attorney General recused himself from overseeing the Russia investigation mr
Trump did not directly answer a question about whether he thought that Eric H holder, Jr
President Barack Obama's first Attorney General was more loyal than mr.
Sessions had been I don't want to get into loyalty, but I will tell you that I will say this Holder protected President Obama
Totally protected him mr.
Trump said he added when you look at the things that they did and hold her protected the president
And I have great respect for that it'll be honest mr.. Trump
said he believes members of the news media will
Eventually cover him more favorably because they are profiting from the interest in his presidency and thus will want him reelected
Another reason that they're going to win another four years is because newspapers
Television all forms of media will tank if them not there because without me their ratings are going down the tubes mr.
Trump said then invoked one of his preferred insults without me the New York Times will indeed be not a failing New York Times
but the failed New York Times he added so they basically have to let me win and
Eventually probably six months before the election they'll be loving me because they're saying please please don't lose Donald Trump
Okay, after the interview mr.. Trump walked out of the grill room stopping briefly to speak to guests
He then showed off a plaque that listed the club's golf champions including several years in which mr.
Trump had won its annual tournament asked how far he was holding balls off the tee these days mr.
Trump who will turn 72 next year was modest
Gets shorter every year he said, thank you for watching for the follow-up
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