Monday, February 18, 2019

Going, Going, Gone!

It was the Valentine's Day Massacre.  Amazon announced it was giving up on building a facility on Long Island.  Thousands of jobs will never materialize.  Some city and state politicians balked at giving the richest company in the world billions in financial incentives.

I get that.

On the other hand, think of all those people who are being denied chances at good paying jobs, and all those businesses that would benefit from a new and huge employer in the area.

In a way, it reminds me of what we had around here-- politicians artificially keeping unneeded entities up and running.  The jobs were great, but your kids and grand kids will pay for it in the long run.

The Amazon case was a little different, in that Amazon is a private entity.

Big business chooses locations based on cheap labor, cheap utilities and cheap land.  It doesn't look like Queens has any of that.  That's where the incentives come in.  An educated work force and a favorable tax structure is icing on the cake.

Financial incentives for businesses are nothing new.  After the Amazon debacle, it looks like the practice is coming to an end.

Shifting gears, it's over for Payless Shoes.  A second bankruptcy filing came last week.  No buyer could be found.  The only option was liquidation.  I visited on occasion.  It wasn't a bad place.  Others did it better and that is always the path to ruin.  I'm sorry for the thousands who will lose their jobs, and all those shopping centers that will take a hit due to an additional vacancy.