Thread by @ritholtz

FYI: About the Amazon HQ2:

Man, so many people are getting this wrong. No, Amazon did not pull out of the NYC deal – and a lot of people have done a terrible job trying to explain this.

A few details that will make things clearer. 1/

Before we start: I am a huge Amazon fan, have been using them since 1998, and I am a giant fan of Jeff Bezos. HQ2 in NYC would have been great.

However . . . Do you know who killed the Amazon HQ2 ? 2 /

Actually, the biggest opponent to Amazon was not from the Congressional class, who had little to do with this. It was not AOC or Elizabeth Warren or anyone else in Congress.

These were State + Local incentives, not Federal. Congress literally has no say on this. 3/

The answer to who killed this deal: NY State Sen. Michael Gianaris

nysenate.gov/senators/micha… 4/

He serves on the Public Authorities Control Board (PACB).

PACB’s approval was required before the project-related financings for the Amazon HQ plan was authorized. Any of the 3 voting members of the board has the power to veto this plan.

budget.ny.gov/agencyGuide/pa… 5/

By coincidence, Gianaris is a state senator who represents the Queens district where Amazon wants to build its new home.

Polls showed 77% of residents in Mr. Gianaris’s district supported bringing Amazon to the area

therealdeal.com/2018/12/03/aft…
6/

Given how wealthy Amazon is, giving them $3 billion in state and city incentives to build here seems inappropriate and a waste of limited resources. It rankled some.

Oh, and they pay no Federal taxes either.

fortune.com/2019/02/14/ama…

7/

Note Apple just expanded in NYC and did not come around begging for a handout...

bizjournals.com/newyork/news/2…
8/

Same with Google...

wsj.com/articles/googl…
9/

Just because you CAN do something does not mean you SHOULD do something.

Amazon should have been less mercenary. The world's wealthiest man running The world's most valuable company does not need to have everyone else subsidize a for-profit firm.

https://twitter.com/ritholtz/status/1096184459341254662

10/

Its the exact same thing as subsidizing Football stadiums. GBYOFS and stop asking taxpayers to subsidize your businesses and/or hobbies.

ritholtz.com/2018/07/stop-p…
11/

While lots of the far right scream about millenials as young socialists or about AOC, here is a news flash: JEFF BEZOS IS A SOCIALIST.

12/

Young people want job opportunities and health care; lots of luck pushing back on their tack towards Socalism when this sort of bullshit is what you offer up as a (crony) capitalist alternative

https://twitter.com/ritholtz/status/1096438994085138432

13/

As a fire-breathing Wall Street working capitalist, allow me to share my crazy idea:

Build your own fucking HQ on your own goddamned dime. 14/

I say this as a giant fan of Jeff Bezos personally, as a reader of the @washingtonpost and as a huge fan and consumer of @amazon.

I have a fine appreciation of all they have accomplished since launching the firm over 20 years ago. But this overreach was a bridge too far. 15/

I hope Amazon builds its HQ2 here. And that it does not require the most successful businessman of this generation to adopt Socialism to do so.

https://twitter.com/SenGianaris/status/1089564202778398720

16/

None of this is new -- it has been well known for months:

nytimes.com/2019/02/05/nyr…

17/

But here is the bottom line:

Bezos did not pull out — he read the writing on the wall, and killed the deal before he was embarrassed.

He jumped before he was pushed.

END /

Note: I linked to this in the AM Reads -- it is a good counterargument

startupecon.wordpress.com/2019/02/13/why…