Amazon’s NYC Deal – Why it is a Bad Deal

On the street they will tell you: "That if you have to pay for it – it ain’t love."

The deal between Amazon and New York City recently broke down in acrimony and accusations. One side led by Gov. Andrew Cuomo, Mayor Bill de Blasio, and powerful commercial and real estate interests viewed the $3 billion public investment as a small price to pay for the thousands of direct and indirect jobs and future tax revenues. On the other side, there was a motley and diverse collection of labor, progressives, anti-gentrification activist, environmentalists, political opportunists, and luddites who each had their own reasons for objecting to the deal.

The motley crew won. I believe the decision by Amazon to withdraw from the deal is ultimately the right outcome, even it was for the wrong reasons. It is time for public sector leaders to stop throwing money at large private corporations to attract them or to retain them in their jurisdictions.


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