Nobody Called Me Out On This!

In my article about corporations not being job creators, I omitted something in my own oversight. Nobody called me out on it!

Another reason corporations do not create jobs is that they shuffle jobs from one state to another. Net gain to the national job market is zero.

A recent glaring example is Amazon. They got all kinds of press both good and bad for the fact that they are building a new co-HQ in NY and DC. That is not an additional facility, it will be replacing their current HQ. There is no information available on how many of the highest wage jobs will also involve transfer of existing employees but the number appears to be significant.

Yes, it will mean new jobs for those specific areas. It is still unknown the pay level for the jobs that will be created there. However, jobs will be lost in the location they are abandoning.

The net effect of corporations doing this actually becomes a loss to communities. It was widely discussed among Progressives that Amazon was promised a massive subsidy by NY for choosing that location. This is on top of a massive subsidy they were given in Seattle when they built the very location they are now leaving because the subsidy was ending. So Seattle lost tax revenue for years and now NY will do the same. Meanwhile it will cost New Yorkers $billions in infrastructure to accommodate the new location. At a time when the public transportation system is suffering badly and the same money would help that situation considerably.

Amazon and indeed Jeff Bezos himself could easily pay for the costs involved in this move out of pocket without noticing the expense at all. Instead, the community picks up the cost while the greater needs of the community are neglected.

This is what corporations do. I only use this case as an example but it happens over and over, every year. They negotiate subsidies or abatement in one city or state to locate there. Those agreements come with expiration dates. When the original agreement expires, the corporation opens bids for other locations for even larger agreements. They have no loyalty and no concern for the damage that results.

Consider what we have seen in Detroit. When corporations with huge structures abandon a location, that is precisely what they do. Abandon it. In Detroit, the auto industry left behind massive factories and buildings. They are not held accountable for remediating those structures. Many times they may leave environmental contamination. If they are fined for the cleanup, the fine is a fraction of the cost. It tends to be extremely rare that a new use for such large buildings is found soon, if ever. Instead, the buildings and infrastructure are left to decay and the community must deal with the eventual demolition, disposal and cleanup efforts. Often for a company that still exists and highly profitable in some other location.

Meanwhile corporate media and corporate puppet politicians praise the corporations endlessly.

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