Big news this morning is that Amazon wants a second HQ in North America. I see a lot of people speculating about possible locations and I see a lot of giddy anticipation. 50,000 jobs! Average salary above $100k! Who wouldn’t want that to come to their town?
Having worked for the behemoth and been to Seattle a handful of times, I can tell you one thing. Amazon coming to town is great for Amazon and it’s actually pretty terrible for the people who already live there. Here are a few things to expect:
That much of an artificial jump in the average income for a city will have catastrophic effects on property values. Well, to be fair, it’ll only be catastrophic for the poor who will no longer be able to afford the taxes on their homes if they own them and who will no longer be able to afford rent from landlords who can suddenly quadruple their ask because 50k new workers who can afford it will gladly pay to live close to work.
I rode a lot of taxis in Seattle and one thing I learned is that working class people had to live 1.5 hours away from the city just to afford housing. That amounts to an extra three hours per day away from home and family just to get to and from work. This is an enormous burden to put on the community and family structure of all the invisible people who will clean the offices, cook the food, drive people around, and all the other jobs that will pay far less than $100k.
Crippling Cost of Living
When Amazon gave me the choice to move to Seattle with my current salary or be laid off (‘reduced in force’ was their charming euphemism), I would have had to take a nearly 50% reduction in real pay just to afford the cost of living increase. So, unless you get one of those jobs that pays above $100k, you’re going to suddenly find that having Amazon in town takes a good bit of the zing out of your paycheck.
An Opportunity Mirage
Those 50k jobs are a great press release item and I’m sure a highly effective bait to dupe money-blinded city councils and state legislatures into shelling out huge tax incentives so that billionaires technocrats can be expand their earthly footprints. But, the boost to local employment will likely be much smaller. Amazon will recruit at least nationally, more like globally, and while the tax base will increase which will be good for the state and city books, a huge chunk of those taxpayers will be people who were already well off who just relocated to be well off here instead. Some of this may trickle out as benefits to the working classes because the state and city will have more revenue to work with, but somehow that seems like a thin hope. I would imagine more displacement than mobility and a doubling or tripling down on income inequality.
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Those are just a few concerns that have mostly to do with economic quality of life. I can’t even begin to imagine how the political climate will change with that much money and influence riding in, though Google’s recent silencing of dissent does not paint a rosy picture. The entire success of Amazon is built on the spurious foundation of abstraction–abstracting people from their communities and making them ‘human capital’ that simply roams the face of the earth in search of the next job, abstracting the actual human toll of having so much stuff available to buy so cheaply and at such convenience off into the slums and backwaters of the globe where conveniently out-of-sight-out-of-mind people will work for peanuts, abstracting satisfaction from anything satisfying and re-centering it on the mere act of consuming. This is nothing short of the disintegration of what it means to be human.
The tech sector thrives on disruption. They like to call it creative destruction, which is really an appalling contradiction in terms. I wish that people would look beyond the explosive growth in Seattle and the profusion of skyscrapers on literally every street corner–a radical transformation of the aesthetic character of the city to match the grotesque transformation of the economic character–and see that when the thing being destroyed is a community so that a new community can replace it, there is no amount of good done to the ‘winners’ that can compensate for the wrong done to the ‘losers’.
Please, God, please don’t let Amazon come to my town.