The new Amazon headquarters, while relishing their victory, was at a raging debate over the billions of dollars in incentives, which was offered to attract the fast-growing US technology behemoths. It has been witnessed that Amazon has been the biggest corporate prize in the last few years. The new Amazon “HQ2” will get divided between the Long Island City District in New York and Crystal City, a Virginia community across the Potomac River from the US capital Washington. This new headquarter stepped in with an estimated $5billion investment and has nearly 50,000 new job opportunities.
For the public coffers, the plans would be positive and intelligent and there would be a prime economic boost from Amazon in creating new facilities, infrastructure and most important jobs as said earlier. Officials in both the communities witnessed a strong held in what they said and welcomed their words big-heartedly. But looking at its progress, the detractors warned at its initial stage about the tax incentives and investments from state and local governments, which is up to $3 billion in New York and $2.5 billion in Virginia. This may eventually offset the economic profits from Amazon’s investments.
Similar to a common practice in the United States, Amazon’s search for inducements are scoffed by some as a Hunger Games competition. But as an overall observation, in a company decision, all these types of incentives hardly make a difference.
Michael Farren, a research fellow from George Mason University who specializes in corporate relocations said, “Corporate relocation decisions are made on the basis of the impact that has been made on the business’ bottom line, just like the availability of a skilled workforce”.