The decision by retail giant Amazon to abandon its plans of opening an second headquarter in Long Island region of New York reveals the mindset of its government bodies that are riddled with suspicion and cynicism. Just a few days before the deal with Amazon was announced local politicians Andrew M. Cuomo and Bill DeBlasio were elected as governor and mayor respectively who have a reputation for helping working class and are known to be fair and just. But several self-appointed local peoples’ champions refused to accept their decision and let go of an opportunity which would have helped working class due to creation of new service jobs.
The $3 billion worth of tax break which was being offered could have been recouped by generation of tax revenue from earnings of Amazon. The current scenario of polarized politics wherein compromises are not tolerated democracy has become dysfunctional. The situation is similar to the ongoing tussle between President Trump and opposition parties about border wall that is not likely to have any effect on illegal migration. Local business leaders are using the Amazon example to warm about economic harm that will affect the country if Democratic Party’s leftward policies continue.
Though critics of Amazon pointed out that being the world’s most valuable company it did not need the tax subsidies but as most states and cities always offer money to new business to encourage them it is tough for private businesses to turn in down. The way forward is to ask National Governors Association and National League of Cities to stop giving out these kinds of subsidies and instead collaborate with them to provide job training and infrastructure investment for the benefit of everyone. The political backlash that Amazon faced in New York s shows what powerful corporates that show little regard for government authority and public interest can expect to face if the fail to give importance to public sentiment.