Today's MOZEN: Amazon - A New Name for Corporate Greed.

F LoBuono

Recently, Amazon, the world's most valuable company with estimated assets in the area of $800 billion to $1 trillion, backed out of a multi-billion dollar deal to bring one of it's shipping hubs to Long Island City, NY. In exchange for the proposed creation of about 25,000 jobs, plus training of local people for jobs there, and a promise of improved living conditions for the area, Amazon would receive about $3 billion in tax rebate incentives from the City and State of New York.

The reaction to their departure was mixed. Those in favor of the project bemoaned the loss of job creation in an area of the City that desperately needs it, as well as the loss of predicted infrastructure improvements like new shops, stores, and restaurants that would employ even more. Many also believed the alleged improvements would increase their property values. Their attitude was that the return on the City's investment in the company was well worth the $3 billion price tag.

On the other side of the fence, those opposed claimed that, given Amazon's track record in other areas, it was the City that was getting the raw end of the deal. They claimed that there was no way the hub would create 25,000 jobs AND that most of the better paying jobs would go to so-called "outsiders" anyway, i.e. those with advanced educations from other parts of the Country. This is turn would inflate the rental and housing markets, pricing the residents of Long Island City out of their own enclave. In addition, the added activity would only further choke an already overly-congested area of the City.

Jeff Bezos. Photo USA Today

Well, I for one, am glad to see them go. And, my reasoning is pretty simple. Why in the world would a company with nearly $1 trillion in assets need a break to make even more money? The company's founder and leader, Jeff Bezos has amassed a personal fortune in excess of $150 billion dollars - that's BILLIONS with a capital B. That fortune makes him not only the richest man in the world, it makes him the RICHEST MAN in MODERN HISTORY. And, if that is not enough to second guess Amazon and its intentions, it has recently been reported that the company will pay NO CORPORATE INCOME TAX IN 2018 (as it did not in 2017, as well).* Yes, you heard that correctly: Amazon will pay ZERO INCOME TAX ON A PROFIT OF $11.2 BILLION for 2018. Yup - ZERO-ZILTCH-NADA-NOTHING.

In addition to their outrageous profits, they are not considered to be worker friendly with many employees describing a toxic work environment. ** Amazon has also resisted all efforts for their employees to unionize***.

So, in the final analysis, what is there to like - really? In fact, they have a term for the way a company like Amazon is run - it's called CORPORATE GREED. And, they are particularly good at it. Virtually every deal Amazon makes is heavily slanted in their favor - or, they won't make it. Well, that may work in some places, some of the time. But, this ain't someplace. This is NEW YORK CITY and we don't tolerate that kind of crap. So, Jeff, tell your story walking. We don't need your kind here.

EPILOGUE:

As part of the debate (and, this topic is worthy of vigorous discourse), people are bandying about the economic principal of Return on Investment, i.e. are the benefits worth the cost.

In the Amazon vs. Long Island City Residents, the numbers, as presented by the mayor and other city and state officials, initially seemed to be a BIG WIN for virtually all parties concerned. Certainly, Amazon’s already enormous profitability would benefit from the prime, NYC location AND the $3 billion in tax breaks it would receive from the City and State. The City and State and, hence the residents, would benefit from the taxes paid to the government by the creation of 25,000 jobs and the proposed infrastructure developments.

But, this is a situation where factors are in play beyond just dollars and cents.

First, and foremost, it is entirely debatable whether or not the residents of the area, particularly those of the huge Queensbridge Housing Project, would receive the full benefits of Amazon’s presence. Certainly, anything that can lift people out of poverty or simply improve their lot in life is always welcome. However, as many residents of the area testified in some of the news stories I saw, skepticism reigned supreme. Most believed that the cost in increased traffic and congestion would outweigh the meager benefits that would come their way. Wherever the truth lies, this seems to be the perception of most. And, it’s THEIR neighborhood.

Second, there is an issue of morality here. A fair question to ask is why in the world would the wealthiest company on earth, headed by reportedly the richest man who ever lived, be in the need of a tax break? Why should a fabulously valuable entity like Amazon with a boss like Jeff Bezos (net worth in the vicinity of $150 billion) need a tax break of ANY kind? Is it not reasonable to expect a highly successful company to create jobs and improve their communities while AT THE SAME TIME paying their share of taxes – just like everyone else?

This leads me to my third point: as part of our ethos, i.e. National Identity, do we want to incentivize the uber-rich to be become even more so for doing the things they should be ethically obligated to do? This leads to the dreaded word – SOCIALISM. The very word strikes fear in the very heart of economic conservatives – how dare we tell businesses how to run themselves! Well, folks, socialism is not a dirty word! In fact, we see it in practice on a daily basis when a fire truck races by or your garbage is collected. We pride ourselves on being ONE people – Americans. So, one way to reinforce that legacy is work collectively for the greater good. Those with the ability to give more, simply should. And, that includes you, me, AND, Amazon.

*http://fortune.com/2019/02/14/amazon-doesnt-pay-federal-taxes-2019/
** https://www.businessinsider.com/the-worst-parts-about-working-at-amazon-according-to-employees-2015-8#your-offer-comes-with-a-lot-of-stock-but-it-wont-vest-for-two-years-1
***http://time.com/956/how-amazon-crushed-the-union-movement/