(KLTV/KTRE) - Amazon recently conducted a search to create a second headquarters. Cities competed for the selection which would mean 25,000 high-end jobs with salaries in the $150,000 range. To land the project, cities would have to give some kind of incentive, and most went after some kind of tax breaks to influence the company and land the project.
It is something our economic developers do here in East Texas with tax abatements and other incentives. We do that knowing that the increase in jobs has a trickle down effect through the economy. Well, Amazon selected Long Island City in the New York area, and received about $3 billion in breaks. Sounds like a win-win for the project and community.
But the company canceled the project due to the push back from local elected officials, the most visible being newly elected Alexandria Ocasio-Cortez. Representative Ocasio-Cortez wanted out of the plan because she felt the $3 billion should be used for improvements in education, roads and other government services.
She obviously doesn’t understand how this works. The government doesn’t have that money, they were giving Amazon some relief from that tax burden temporarily. Without Amazon, there is no money now or down the road, and Cortez obviously doesn’t get it.
What is terrifying is that her ignorance is now a vote in Congress. Operating out of ignorance of a basic economic strategy is so dangerous, and yet it is what we have. We need new blood in the governing arena, but it has to be educated on how things work or it could truly spell economic disaster for us all.