Amazon’s highly visible search for a second headquarters has offered one tremendous public benefit: it has raised public awareness of what bad economic development is. Even Saturday Night Live satirized the lengths to which local officials will go to woo a major company, which include offering massive amounts of taxpayer subsidies, despite dubious economic returns.
Landing Amazon HQ2 Isn’t the Right Way for a City to Create Jobs. Here’s What Works Instead
Focus on the people who already live in your community.
July 31, 2018
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Summary.
Amazon’s highly visible search for a second headquarters has offered one tremendous public benefit: it has raised public awareness of what bad economic development is. It’s easy to understand why local leaders pursue these business attraction deals, however attracting out-of-state businesses accounts for just 3% to 14% of all jobs created in a state each year. Meanwhile, the bulk of job growth comes from empowering existing people and businesses in a community to grow, innovate, and start new ventures. Local leaders and voters should demand this kind of good economic development, which then attracts other firms that want to be part of a dynamic local business environment.