Amazon HQ 2 in Atlanta?

On 24th September 2018, I had the opportunity to e-meet one of the most credible and respected journalists in Atlanta- Greg Bluestein. I asked for his views on the speculations surrounding an issue that has captured the attention of not just Georgia, but the entire United States: Atlanta’s possible bid for being Amazon’s second Headquarters. Bluestein gave a rather interesting take on this burning issue when he emphasized on how “politics will be the cause of whether Atlanta gets the HQ2 or not” 

But why is becoming the next headquarter of Amazon Inc.such a big deal?

 Amazon’s first HQ was in Seattle where in 6 years (2010-2016) they had built over 40,000 jobs and had invested over $38 billion in the city’s economy. Business analysts and economic gurus at organizations like Forbes say that how Amazon HQ2 would be the next Silicon Valley. Such significant investments and indirect creation of multiple millions of jobs can completely change the economy of a city/state for better. Now if we look at a political perspective, it is a cause of significant debate these primary elections for the candidates to talk about whether or not Amazon should come to Atlanta, as this would affect the lives of millions of residents. Many lawmakers argue that it will not be suitable for small-business as this would increase the cost of labor and rentals would sky-rocket, whereas others say that this will ensure that the state becomes an international technology hub. 

Atlanta is a strong contender for HQ2because of low housing costs, a prime downtown location- The Gulch and extensive air connections (Courtesy- Delta Airlines). Thus, offering a perfect mix of all what Amazon is looking for in its next HQ.

Now one might want to understand why Atlanta will not win? “Tax Subsidies”

 Georgia legislature recently approved a bill stripping a $50 million sales tax exemption from the Delta airline. A big reason why Atlanta is an attractive choice for Amazon is its airport’s connectivity, and this move might jeopardize that connectivity if Delta leaves Atlanta. Secondly, many rival cities have offered billions in subsidies, which Atlanta still hasn’t as the current Georgia Legislature is a “republican dominant one.”

Now going back to what Bluestein replied- “Politics will be the deciding factor for Atlanta to win.”So, if we want to win, then we might want a “Democrat inclined Legislature” as the Georgia legislature needs to pass a bill that offers a multi-billion-dollar tax break to Amazon. Republicans, especially the current president (who has a personal history with Jeff Bezos), are against any tax subsidies which Amazon gets and so if Trump backed- Brian Kempwins these upcoming elections, then it will be tough for the Georgia Legislature to offer much to Amazon. To conclude with, the upcoming primary elections might just be the deciding factor to whether Atlanta wins this bid or not. Let’s see how the events unfold.

Refrences-

1.  Saunders, Pete. “Amazon's HQ2 Could Be Silicon Valley 2, For Better Or Worse.” Forbes, Forbes Magazine, 8 Oct. 2018, forbes.com/sites/petesaunders1/2018/10/05/amazons-hq2-could-be-silicon-valley-2-for-better-or-worse/#3f90d10117b3).
2. Roberts, Paul, et al. “This Is What Really Happens When Amazon Comes to Your Town.” POLITICO Magazine, 19 Oct. 2017, www.politico.com/magazine/story/2017/10/19/amazon-headquarters-seattle-215725.
3. Casselman, Ben. “What Amazon's New Headquarters Could Mean for Rents.” The New York Times, The New York Times, 25 Apr. 2018, www.nytimes.com/2018/04/25/business/economy/amazon-hq-rents.html.
4. Keenan, Sean. “Proposed Gulch Deal Could Suggest Developer Needs Amazon HQ2 to Land Incentives.” Curbed Atlanta, Curbed Atlanta, 12 Sept. 2018, atlanta.curbed.com/2018/9/12/17850958/amazon-hq2-gulch-deal-developer-downtown.
5. Baptiste, Nathalie, et al. “Georgia Legislature Punishes Delta for Cutting Ties with the NRA.” Mother Jones, 2 Mar. 2018, www.motherjones.com/politics/2018/03/only-13-people-used-delta-nra-discount-1/0.
6. “Georgia Republicans Honor Their Threat to Punish Delta for Cutting Ties with NRA.” Memeorandum, www.memeorandum.com/180301/p161.
7. Smith, David. “Why Does Trump Hate Jeff Bezos: Is It about Power or Money?” The Guardian, Guardian News and Media, 17 June 2018, www.theguardian.com/technology/2018/jun/17/donald-trump-jeff-bezos-amazon-washington-post-power-money.
8. Trubey, J. Scott, and Greg Bluestein. “Amazon HQ2 Decision Looms as Georgia Governor's Race Set.” Ajc, The Atlanta Journal-Constitution, 30 July 2018, www.ajc.com/news/local-govt--politics/amazon-hq2-decision-looms-georgia-governor-race-set/HMoY9XdudrFw5omN101PnI.