Crony Capitalism

[Chris]

This is about Amazon's rent seeking government favors.

Stossel makes the point but gets side tracked on minimum wage.



Tucker gets right to the point.

[Chris]

Veronique de Rugy, Alexandria Ocasio-Cortez Is Right about Amazon’s Corporate Welfare

...I can’t believe I’m saying this, but Ocasio-Cortez is mostly correct on this matter, and her conservative critics are wrong. Handouts like this to Amazon and other prominent companies are appalling in their cronyism, pure and simple. I agree that she doesn’t understand economics and that her socialist ideal is a recipe for fiscal and economic disaster. But her conservative critics reveal their own economic misunderstanding when they support targeted tax breaks as a means of creating jobs.

First, let’s be honest. Tax incentives aren’t anywhere near the top of the factors that company considers when deciding where to locate. In all likelihood, Amazon first surveyed all available locations searching for factors that really matter most — factors such as the presence of a skilled workforce, adequate infrastructure and transportation options (airports and a vast subway network), as well as synergies with other companies for the purpose of enhancing production supply chains and access to professional services. Once, it had a list of places that fit its needs, it might have taken under consideration the tax incentives.

...In other words, Amazon would have likely made the same decision with or without subsidies. It also explains why no amount of subsidies can drag a company to a place that isn’t economically vibrant or that is in the middle of nowhere. But face it: Amazon was never going to move to, say, Opelika, Ala., or Marfa, Texas, no matter how gargantuan the promised tax breaks there.

More importantly, while there’s no doubt that Amazon’s HQ2 will add something, including jobs, to the economy, it could have not only have added these jobs and economic growth from the economy without the subsidies, but the payoff to the local economy would have likely been larger absent the handout. There is a broad body of economic research that shows that targeted state subsidies to private businesses — while often promoted as a “market-friendly” means to boost growth, jobs, and development — have little to no net positive effects. George Mason University’s Christopher Coyne and Lotta Moberg wrote a review of the research and concluded that such subsidies are in fact often damaging because they misallocate scarce public resources while encouraging rent seeking, regulatory capture, and cronyism....

[midcan5]

Trump sycophants hating the same people Trump tells them to hate, how journalistic is that I ask you? Fox is a circle jerk of idiots kowtowing to a buffoon.

[Peter1469]

Trump sycophants hating the same people Trump tells them to hate, how journalistic is that I ask you? Fox is a circle jerk of idiots kowtowing to a buffoon.

TDS strike.

[Captdon]

I always get the best deal I can. Why shouldn't a business do that? If the people don't like it they should have been choosier who they voted into office.

[Peter1469]

Amazon officially announced the locations for its new HQ2- Crystal City, VA and NYC. That will create 25,000 jobs in each location with an average starting salary of $150,000 - although Amazon is getting government granted breaks for these locations, its workers will pay local taxes.

I am worried about the increased traffic here, and the spike in real estate prices. I am sure my condo has spiked in value this week, but if I sell here and buy another property here, I won't see any savings.

[Chris]

I always get the best deal I can. Why shouldn't a business do that? If the people don't like it they should have been choosier who they voted into office.

Yea, I have no problem with Amazon getting the best deal it can, just not because politicians give it away at taxpayer expense.

Stossel's video is about how (a) Amazon raised wages to $15/hr and now lobbies Congress to force its competitors to do the same, and (b) the ill effects of minimum wage on workers.

[Chris]

Amazon officially announced the locations for its new HQ2- Crystal City, VA and NYC. That will create 25,000 jobs in each location with an average starting salary of $150,000 - although Amazon is getting government granted breaks for these locations, its workers will pay local taxes.

I am worried about the increased traffic here, and the spike in real estate prices. I am sure my condo has spiked in value this week, but if I sell here and buy another property here, I won't see any savings.

Agree, there's plusses and minuses for those two places.

[Chris]

Trump sycophants hating the same people Trump tells them to hate, how journalistic is that I ask you? Fox is a circle jerk of idiots kowtowing to a buffoon.

So you're saying Ocasio-Cortez is a Trump sycophant? Coming at his beck and dog whistle?

Oh, wait, she's a social democrat, and the three sources I provided are libertarian none of who especially likes Trump. Veronique de Rugy tore him apart on his trade policies.

But let's see what's happening with Trump and Amazon. I do recall he was upset with them for their low-cost deals with the USPS. But TRUMP GIVES AMAZON CREDIT, SAYS ‘THEY TOOK THE BEST DEAL’.

Seems you're off on all accounts.

As Peter said, TDS.

[Captdon]

Trump sycophants hating the same people Trump tells them to hate, how journalistic is that I ask you? Fox is a circle jerk of idiots kowtowing to a buffoon.

Then there's the likes of you who hate Trump because he has done what Obama said couldn't be done.