Amazon.com, Inc. is one of the biggest online commerce and technology companies in the nation. Amazon boasts tons of benefits from online streaming of entertainment and books to guaranteed one-day shipping. This e-commerce giant has also grown into creating and outsourcing their own "smart home" appliances, such as "Alexa" and "Echo," which has given them a competitive edge alongside other "smart home" companies. "Alexa, play 'Stronger' by Kelly Clarkson," am I right?
Amazon was originally founded in a basement in Seattle, Washington by Jeff Bezos. Bezos, the Chief Executive Officer, is now the richest man in the world with a net worth of $137.8 billion, according to Forbes. With such a tremendous amount of wealth generated, the company announced its plans to expand by creating its second Headquarters (HQ2).
The biggest myth about HQ2 was that it was going to be solely in New York City, but in actuality, the Headquarters will be split between the Long Island City neighborhood of Queens, New York and Arlington, Virginia according to NPR. This split will not only provide thousands of new jobs in each area, but it takes away the initial tax-payer cost that one major Headquarters would bring. The split of HQ2 is planned to bring over 25,000 new jobs paying approximately $150,000, in addition to the projected $10 billion in tax revenue to New York and $3.2 billion to Virginia, cited from NPR.
While the benefits of increased tax revenue and six-figure jobs are fantastic, there are some drawbacks that must be addressed, especially for the locals of the cities mentioned. According to Business Insider, Amazon's upcoming presence could spur gentrification, traffic jams, and massive rent increases. Although the split should limit these factors, locals in both areas concern that Amazon's presence could create the looming effect of the $5 billion complex of "Amazonia" that originated in Seattle. Danny Westneat, of The Seattle Times, warns that the rent increase that followed Amazon's prosperity put Seattle on the map as "one of the more unequal, unaffordable cities in the nation." The rise in rent also runs "Mom and Pop," as well as, individually owned businesses right out of town to make room for the new, luxury restaurants and retailers for the high-profile clientele. Westneat also coins the term "broverwhelmed" for the surprising proportion of 130 single males for every 100 females due to the male-dominated nature of the tech industry. Westneat does admit these are side effects of great economic prosperity, not to take away from the marvel that is Amazon, and the employment opportunities that they have created in good economic faith.
After weighing the costs and benefits of such a drastic economic move for Virginia and New York, only time will tell if the costs outweigh the benefits and vice versa. Will the rising rent prices create a new migration of lower-class workers to more affordable areas? Will the increase in tax revenue fix infrastructure issues both Arlington and Queens face, such as their deteriorating city-wide transit systems?
The hiring process for HQ2 cities begins in 2019, hopefully, Amazon will bring a new year of minimal gentrification and economic resurgence.
