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Amazon's HQ2 is a 'money losing investment for taxpayers,' warns top Fed official

Opening Argument

agsragsr 812 Pts
billpassedlove2debateMax_Air29
  1. Amazon's HQ2 is a 'money losing investment for taxpayers,' warns top Fed official

    4 votes
    1. Agree
      100.00%
    2. Disagree
        0.00%
Live Long and Prosper



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Status: Open Debate


Arguments

  • agsragsr 812 Pts
    It's an attractive proposition for any city to be the host of Amazon HQ with 50,000 employees.  It's like winning a bid for hosting Olympic, but better.  However, the winning city will have to offer Bezos deep concessions that maynot be worth it. Amazon, in it's tradition of undercutting any industry by lowest prices is doing it again.  All the cities bidding for Amazon business are essentially bidding in a reverse auction - the winner? Amazon. The loser: the winning city that will be greediest to get Amazon HQ.  
    It's a well stuidied economic phenomenon - the winners curse.
    Live Long and Prosper
  • Cities may have to give Amazon tax cuts, reduced prices, etc. to get Amazon to build their HQ2 in that city.
  • @billpassed, I doubt that cities will avoid some level of deep subsidies to lure Amazon HQ.  Amazon has created a highly competitive environment where they will need to bid against each other.  I am sure that there are heavy negotiations behind the scenes.
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