From Vice (first time ever?):
If there are two facts of life in the modern American city, they are that rent will be too damn high, and that attracting investment from a mega corporation will seem to some local power players like the best way to stave off economic disaster. The rent part is an old, old story. Under-construction of affordable and publicly-funded housing units targeted at the working- and middle-classes is a trend that started around the 1970s. Combine that with spiraling income inequality, the erosion of tenants’ rights, and stagnant real wages, and it makes paying for a roof over your head almost impossible in many metropolises. At the same time, the decline of manufacturing and the federal government’s general unwillingness to invest in major job-creation programs (like infrastructure) means civic leaders have long been tripping over each other to woo companies who might act as job creators for the populace and, not incidentally, help those politicians keep their own jobs.
Enter Amazon, the corporation to rule them all. CEO Jeff Bezos is the richest man ever, and his empire has been dangling construction of “HQ2,” its new headquarters outside the company’s original home base of Seattle, for nearly a year now. Dozens of cities have made bids, Olympics-style, to win the company’s favor, and 20 cities are still in the running as finalists. Their thirst makes some sense: After all, tens of thousands of high-paying tech jobs could be in the offing, not to mention all the money those new arrivals (or maybe even newly-employed locals) might be spending at local businesses.
The company, for it all its questionable labor practices and pernicious effects on everything from book publishing to retail clothing, does seem to be able to offer the prospect of a real economic boon. That’s what unprecedented corporate consolidation means—one company really does have the power to boss around an entire city because its sway over jobs (and its attendant political influence) are that enormous. The leaders of places as varied as Toronto to Newark (two finalists for the HQ2 bid) are not crazy to be offering massive (and possibly secret) tax breaks in hopes of winning Amazon’s favor—it really could improve their short-term finances or at least attract a lot of tourism and the wealth that comes with it.
But shipping in a bunch of tech workers and their ilk could also mean even higher rent and worse gentrification. And since cities don’t seem to have any idea how to actually drive down rent for the poor, it’s fair to wonder if they might be better off without that Amazon money entirely—even if it means losing out on jobs and development in the interim.