Amazon deserves criticism over its effort to gain as many government subsidies as possible for its new headquarters, asserts Bre Payton of The Federalist. The resulting $1.5 billion in tax incentives that New York has promised the company will deprive the city’s residents of much needed public spending. Amazon’s tactic will save it huge amounts of money while adding very little to the overall economy since it would have had to settle in a US city anyway. Critics are also right to point out that the company will drive up the already sky-high housing prices of New York. The jobs it creates will likely go to already high-earners, which benefits the middle class little.
Amazon is being unfairly criticized for its new headquarter deals in Virginia and Long Island, which are products of the free market and should therefore be respected, believes John Tamny of Real Clear Markets. The company offers cities major benefits that are worth significant tax incentives. Amazon cutting costs drives its ability to innovate and benefit the US economy. The better it does, the more jobs it will be able to create in the future. Governments have a habit of spending tax money badly. Meanwhile, Amazon’s presence will grow revenues among many businesses in New York and Virginia, creating even more jobs indirectly. This should be celebrated.