Many New Yorkers cheered last week's news that Amazon chose Queens for their HQ2 project. But others are looking at…
Many New Yorkers cheered last week’s news that Amazon chose Queens for their HQ2 project. But others are looking at the move a big act of corporate welfare. Given the occurrence of the second perception, a certain perspective is needed. Because you can call Amazon’s store, a giveaway can be comfortable, it’s also misleading.
Initially, New York’s incentive to Amazon is by definition not a handout. About 85 percent, or 2.5 billion dollars, of the entire package is performance-based, due to the creation of tens of thousands of jobs and significant investments in the local community. The money would come from an existing economic development budget, not including money that goes to public services such as transit and schools.
This fact leads to another: The terms offered to Amazon are neither divergent nor never seen before. States and cities across the country routinely offer such packages to companies through existing budgets for economic development. Companies in all shapes and sizes seek them out, as incentives are often a big tie between two sites. The result is beneficial for both companies and municipalities.
In the case of Amazon in New York, the benefits to the city include 25,000 to 40,000 direct jobs with average wages north of $ 1
Then there are 1300 annual construction jobs for a perennial period. All in all, the job will provide more than 3.75 billion kronor in employee earnings for 10 years, per governor’s office, everything is injected into an area that historically relies on manufacturing.
The result is a deep revitalization of Long Island City’s job base and its transition to a technology-enabled economy. The ultimate effect will be $ 12 billion to $ 27 billion in direct economic growth. Together with the multiplier effect, every new high-tech job in a city creates five further non-technical jobs, according to academic research. The benefits of the incentive package exceed the cost.
Words like “bailout” or “corporate greed” are therefore inapt. A more appropriate way of thinking about the deal would be an investment – not just in our economy or country without our technical sector and talent pool.
It was not just dollars and cents that attracted Amazon to New York after Everything. The company was attracted to our world-class technical ecosystem. Amazon appreciated the ecosystem’s potential to prosper and benefit all New Yorkers.
Some measurements tell. Right now, New York contains more than 7000 startups, which means more than 326,000 jobs and a $ 71 billion collective valuation. Other figures show that we have the fastest working time for engineers (on average 24 days) and more than 100 tech incubators focused on growing local talents. Venture Capital Funds increased by 41 percent in 2017.
For a company like Amazon, figures are such evidence that New York has the capital, people and potential to support a fast-growing technology company.
For all this, We can thank public officials and an education system that has promoted a wider culture of skills-based learning in New York. Gov. Cuomo has made a $ 30 million commitment to computer science education, and mayor de Blasio has also created several programs that support female entrepreneurship, not to mention computer science education at all public schools this decade. Former Mayor Bloomberg, meanwhile, helped launch Cornell Tech 2012, when New York has been invited to the Technical Incubator since it has become.
The result was a total package, including incentives and an environment that Amazon could not cope with.
Yes, economic conditions were part of this, but they were neither outlandish nor unclaimed. Yes, some will worry about the influence of the big company, but in view of our longevity, Amazon may not be part of New York, rather than vice versa.
At the end is 25,000 good jobs went somewhere in North America. I’m glad they will be here in New York and appreciate our mayor and governor to do that.
Julie Samuels is the Managing Director of Tech: NYC.