Amazon chose New York and Virginia to be the respective locations for its divided second headquarters. In response to the increasing leftist governance in Seattle, Amazon had been seeking a new city in which to diversify. The Democrats of deep-blue Virginia and New York, in a desperate attempt to land the retail giant, promised the moon and a night with their wives to Jeff Bezos in exchange for jobs and tax revenue.
Democrats are not known for being business-friendly legislators. Typically, they spike taxes on corporations in an effort to generate revenue, opting to invest heavily in education and social programs, as opposed to industry. Additionally, the progressive mind does not lend itself nicely to a balance sheet when it comes to environmental and labor regulation, often prompting businesses to flee in search of a New Deal of their own.
The policies of leftist governance tend to be economically damaging and uninviting to newcomers. That’s why Democrats will suspend the laws of leftist logic when convenient.
Leftist logic, economically speaking, tends to relegate the world’s evil to rich people. You know, those old, greedy, corporate fat-cats reclining comfortably atop the one percentile of earners, presiding over the working class folks breaking their backs to fuel American enterprise in the shadows for crumbs. Leftist logic dictates that companies need to pay more taxes, while shouldering the brunt of overbearing regulations.
Companies exist to make a profit. When overbearing taxes chip away at the margins, while wage floors and carbon emissions regulations constrict the airway of industry, businesses either shut down or move elsewhere.
In Seattle, companies Ofo and Boeing have moved out in response to leftist logic. Amazon has decided not to move out entirely, but rather to diversify. Since Amazon announced its intention to build an additional headquarters on the east coast, major cities have been competing with one another in an attempt to lockdown the retail titan.
Amazon declared its intentions publicly so that potential suitors would enter into a bidding war, offering tax breaks, subsidies and other incentives. Rest assured, Democrats came sweet-talking their potential new sugar mama.
New York, which will host Amazon in Long Island City, promised $1.5 billion in tax incentives, with additional infrastructure upgrades, job-training programs and a helipad. Virginia, which will serve as Amazon’s D.C.-area headquarters, offered $573 million, including over $500 million in cash grants and $22,000 per job created. The state will also fund a Virginia Tech satellite campus to offer Amazon fresh graduate talent, a pledge that will cost $250 million. In exchange, Amazon has agreed to provide 25,000 jobs per location.
This is a concrete admission on the part of Democrats that conservative supply-side economics is effective.
The left rails against the evils of capitalism for exploiting poor workers, destroying the environment, and perpetuating income inequality. Yet, when Democrats need money, it’s time to show some nipple to big business.
It’s excellent that Democrats, such as Governor Andrew Cuomo, NYC Mayor Bill DeBlasio and Governor Ralph Northam, among others, recognize the value of industry and are willing to foster it through supply-side measures. But, these measures ought to be universal within their states.
If Democrats think these tax cuts, subsidies and incentives are attracting business, namely Amazon, ultimately creating jobs and revenue, then they ought to extend these business-friendly measures to all industry within their states. Why cherry pick and overpay for behemoth companies like Amazon? It’s far more logical to lower the tax and regulatory burden across the board and allow all businesses to thrive and create wealth for the state.
“If you actually want to draw businesses to your area, all you have to do is provide a low-crime, low-tax, low-regulation environment. Then you don’t need to make special exceptions for businesses big enough to earn you a headline.”
Despite a massive push by Democrats in blue states to attract Amazon, many leftists still hide behind the anti-business talking points frequently spouted by perennial box office dud Michael Moore who claims, “Capitalism is an evil [and] you have to eliminate it.”
In truth, capitalism is the mode by which leftists provide jobs for their constituency, as evidenced by the 50,000 jobs Amazon has promised to New York and Virginia residents. Additionally, leftist social programs are funded by the massive tax burden inflicted by Democrats on corporations and wealthy individuals, for that matter.
The left recognizes as much as the right the importance of industry, but won’t admit it. Although they try, Democrats aren’t fooling anyone.
Kevin Catapano is a campus correspondent for The Daily Campus. He can be reached via email at email@example.com.