Last Thursday Amazon released their plans to open a second headquarters in North America.
Implications of having their headquarters in your city would be huge.Amazon is worth 400 billion
plus, and their original headquarters in Seattle has already brought an additional 38 billion to the
local economy over 6 years. Amazon is expected to invest 5 billion in construction and create thousands oh high paying jobs for their new headquarters right away. These high paying jobs will increase disposable income which in turn will also grow the economy. furthermore the local tax revenue from amazon would help improve public services and money for other local projects such as repairing roads .Amazon in total would bring in an additional 6 billion dollars to the local economy a year. Amazons announcement will most likely cause havoc among cities trying to bring Amazons headquarters to their town.
https://www.cnbc.com/2017/09/07/amazon-launches-search-for-a-second-headquarters-in-north-america.html
It is very cool to see that one company building a new headquarters could potentially help out an economy in a city of need. Depending on how soon Amazon is planning to build the headquarters, I think they should really look into building in an area that does not have the best economy, or that could use a boost. With the devastation of the hurricanes, maybe it would be good for Amazon to look into building in Texas or Florida to help provide jobs and bring dollars back to the local economy. The local tax revenue you mentioned could also be beneficial to one of these areas since a lot of rebuilding is needed once the storms pass.
ReplyDeleteI agree with Erin this is a very exciting time for not only Amazon but for the potential host cities. Amazon has said they expect 50,000 new employees to come out of this new venture. Majority of these jobs will also be high paying. This new site and the jobs it will bring will increase economic activity as well as infrastructure costs and affordable housing goals.
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ReplyDeleteWith a company as big as Amazon, and the ability revitalize a city by billions of dollars, it really sheds a light on the macroeconomic benefits with simple construction of a new tech giant's headquarters. This reminds me a lot of the effect of tech start-ups in Silicon Valley. I'm curious of the strategy behind choosing which city to build such economic impactors. Seems to be a very powerful decision for a private enterprise with a direct domestic economic impact.
ReplyDeleteIt is really great to see the benefits that one firm can have on an entire community or economy. Amazon, being as big as they are, can create thousands of jobs, increase production, and encourage spending and investing, all the while keeping prices low in places like Whole Foods and the product market in general. This adds weight to the arguments that taxes on corporations should be cut down so more companies like Amazon can have the capability to expand and grow an economy. Businesses have the ability to impact people and communities in more than just economic ways, and it is interesting to analyze the overall effects this type of move would have.
ReplyDeleteThis can be seen around Columbus too. Amazon opting to put a warehouse just outside of Columbus allows an influx of population into Columbus. Not only as workers of Amazon, but the construction workers as well. The people moving in stimulate the local economy by spending their income in and around Columbus which puts money in pockets of local people, making the area richer as a whole.
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