Why Amazon Pulling Out of New York is Huge News

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Well if you have not heard the huge news come out today is basically that amazon will not build its new headquarters in new york that it was supposed to build amazon announced thursday it will not build its headquarters in new york city after local opposition the company originally planned to build the campus in the long island city neighborhood of queens the washington

Post had first reported last week the executives are thinking about not going through with it new york governor andrew cuomo has warned that local and regional leaders will have to answer to voters if amazon did not ultimately bring the 25 thousand jobs to the state far as amazon’s statement in regards to us they say while polls show that 70% of new yorkers support

Our plans in investment a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with a project we and many others envisioned in long island city amazon said in a statement as far as amazon stock for the day it hardly moved because this for

Amazon is like okay well we’re not gonna build there we’ll just find somewhere else to build all right and the amazing thing is we have a politician out there that thinks this is great for them and their people okay we’re gonna describe them as aoc we’ll call them by their initials cuz i refuse to use anybody’s name on the channel who has never built anything in

Their own lives not a small business like how can this person understand anything about economics when they are totally not even in the economic system okay they say anything is possible today was a great day for a group of dedicated every day new yorkers and their neighbors defeated amazon’s corporate greed its worker exploitation and the power of the richest

Man in the world and once again this individual i can’t find anything where they’ve ever really been part of the economic system from what i see they’d never built a business they never made investments so i can’t i can’t understand like how this person could understand anything about economics especially when i’ve seen videos of them in the past where they just

Clearly do not understand how the economic system works the most impressive thing this person has done is be a bartender for my understanding okay so i want to explain why this was a very very bad decision to fight amazon in this situation say amazon we don’t want your 25,000 plus jobs okay i want to explain that but first i want to go through one of these tweets

Because it’s just amazing me okay i’m going through the the threat of the tweets and whatnot where the individual says torpedo in your own citizens well done and then somebody responds back to this and it’s just it amazes me how some people just don’t understand how things work there’s not really amazon was not hiring more people they were just moving employees

From elsewhere and it’s not cool a billion-dollar company gets billions and subsidies but poor communities do not i always think it’s really interesting when somebody thinks that like poor communities don’t get anything or poor people don’t get any help or something like that because i was part of the poor community for a long time in my life okay i was born in a

Government hospital so like the government paid for me to be born okay all in my early years we were on food stamps so the food came from the government at the end of the day right later on in life when i was around 18 19 i was on government healthcare again i had some food stamps at that particular time my college was paid for by the government at that time obama

Had a plan we were basically if you spent under a certain amount of money you got all that money back i think it was like four thousand a year or something i went to community college so all my schooling was basically paid for for free so i’m like wait i had healthcare for free i had food stamps for awhile for free i had a ssin for free so though this whole notion

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That like if you’re you’re poor you don’t get any help or something like that like i’m like and so i’m like wondering when people say this have they never been poor cuz if you’ve ever been actually poor in the united states of america you realize there’s a lot of help it’s not like oh also like here’s a free house for you and here’s a free everything right but as

Far in terms of like health care and food stamps and things like that like we do have programs like that in the united states of america okay now one of these tweets just cracks me up and says i will make it my mission to see you become a park tender again oh my goodness and this guy says there’s a lot of jobs walking away this person says that’s a lot of our tax

Money staying and this is just a complete misunderstanding okay people think it was like new york city was like gonna just give amazon a ton of money when i was actually tax incentives and you might say why would why would a state or why would cities give tax incentives for a big corporation to come build a headquarters okay and this is where our economic study

Starts for the day and a oh see i hope you watch this because you sorely need a little understanding of this okay so let’s be very clear amazon it was going to be around 25,000 jobs they were gonna have at that new headquarters i guess it’s called headquarters – in new york city they’re somewhere around queens area alright soft wood many companies have a new

Headquarters it’s not like that’s the only amount of employees they’ll ever hire a lot of companies as they get bigger they add more more corporate campuses around the city they’re in or around the state in general and so 25,000 employees over time ends up going to 30,000 and ends up going to 40,000 so on and so forth that seen this with corporation after corporation

Will they’ll have a new headquarters and then as that company does better and better they have to hire in more employees and also they have to buy another space another office space around there another office space hire a bunch more employees so first off it was 25,000 employees which is a massive amount of employees it’s not understand or how many employees at

Is that’s a lot of people and we got to ask ourselves what type of jobs where these corporate employees gonna be these weren’t like minimum wage jobs where they make like $8 an hour or something like that okay the majority of these people would have been on salary but if you want to break it out to like an hourly rate what would most of these jobs would have been

Around they would have been making somewhere between like $20 and around $50 per hour all right these are good-paying jobs these are corporate jobs that amazon was hiring for and not like some minimum-wage jobs like like a fast-food worker or something like that right now this directly and indirectly affects so many different things okay one you’re gonna have a

Ton of hiring that goes on for a corporate campus like this right off the bat okay you’re gonna have a lot of local hiring a lot of local jobs when we’re talking about 25,000 jobs a good amount of those are gonna come from the local market will some move in from other territories where amazon might have had to get a headquarters in the past yes that’s definitely

Possible but i can tell you out of 25,000 jobs a good chunk of them would have been locally hired individuals those people would have either been out of work or they would have been making less money and they go ahead and they they see amazon you know they’re gonna pay me more i’m gonna go ahead and work there no one goes and applies for amazon if they’re gonna pay

You less or if it’s less of a job or something like that right as far as local workers they’re looking for a job because they don’t have a job or because it’s going to be a step up for them and they get to make more money or something like that okay so you get this massive amount of local hiring going on what does this end up producing well it produces a lot more

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In-state taxes because you got a lot more people making a lot more money okay so all those taxes and in those those tax breaks today we’re talking about for amazon you know that would have played out over the next few years guess what a lot of that money would have been just coming back to them in the state taxes alone then on top of that you have what’s called

Local taxes okay all the local taxes all these people making all this money what do they do well not only do have to pay taxes on that money to the state but then on top of that they’re gonna probably buy real estate properties real estate properties increase in value what ends up happening well really new york taxes everything so even when a real estate property

Is sold or bought in new york city you have to actually pay taxes on that so that’s it real estate prices increase guess what also increases local taxes okay so you got all these employees right in that area right what are they going to likely do well they need to eat breakfast somewhere they need lunch somewhere they need any dinner well if they’re working right

Around that area they’re much more likely to spend a lot of money at breakfast places lunch places dinner places what does that end up doing well that’s a bunch more taxes because we know every time you go buy breakfast somewhere or lunch or dinner guess what there’s a bunch of local and state taxes on top of that that’s more money that’s produced also all these

Places get a lot busier which means all these folks that run these breakfast places that serve launched that serve dinner all these restaurants and little shops and whatnot guess what they bring in more money so they can go spend and it’s a beautiful cycle and they can go spend more money and do more things and help out the economy in general the economic cycle is

One of the simplest things to understand but i understand think some people get it there’s two ways in economic cycle hing go whether we’re talking about on a local basis a situation like this or on a macro scale either goes a good way where the domino’s are following the right way or they’re falling the wrong way it’s one or the other and that’s macroeconomics in

The simplest terms that’s what when you see a recession and in layoffs start to happen what happens it gets a lot worse and more job losses lead to more job losses because this person that was making 50k year or a 100k year also and they lose their job and all of a sudden they can’t spend a bunch of money at the pizza place down the shop and now they got to start

Eating fast food and they can’t spend a bunch more money on amazon which ends up hiring more and more corporate employees right and so they cut back their spending because they don’t have as much money to spend and that’s a it’s okay so whether you’re looking at on a local situation like this is right they were in a position where the dominoes could just keep falling

The right way 25,000 jobs is a massive amount of money to move into an area like that and it would have been a substantial amount of state taxes and local taxes they would have made up on over the next decade or two okay amazon’s not going anywhere if anything amazon’s getting bigger and you want to attract the company like that because 25,000 jobs now could mean

In 30,000 40,000 50,000 down the road but when you scare them away they’re gonna remember that oh they don’t really like us over there they think what we’re doing is bad there’s a reason state local governments who are willing to give tax breaks to big corporations that hire ton of jobs because they understand the way the economic system works and if you have a

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Ton of employees in a particular area that are all working they’re gonna spend a lot more money in your state or in your local city and that’s what could ended up happening here and it just is it puts in a situation when the dominoes gonna follow right way or the wrong way and by scaring away 25,000 jobs think about the construction spending that would have been

On that property think about what that would have done for local businesses in that community local restaurants and whatnot all those people could have had a lot more money in influx and now they’re just that money’s not coming there that money is not coming there and what also happens is you stagnate wages basically when you have a bunch of huge employer like

That coming to the area and they’re hiring all these employees well to get employees to their company right they have to outbid the other companies that are in that area because that’s how you get employees if you’re if you’re paying less like most people aren’t going to leave their current job to go to somewhere else because it pays less money that’s just not

What people do okay so if amazon wanted to get a bunch of and local employees they’ve got to pay more than what everybody else is in the area is paying okay anything gets what ends up happening all the other businesses and all the other big businesses and midsize businesses even small businesses what do they have to do to attract employees they have to pay more

Which means wages go up which is what you ideally want in an economic system which is what she always talks about oh we want wages go up guess what a huge employer coming in your ear or city like that they’re gonna push wages up a lot because they’re higher they’re taking a ton of people out of the workforce there to come work at their place which means that other

Companies if they want to out hire them they have to up their wages as well and it helps out everybody in general and that’s the economic system it’s a very simple thing to understand but some people don’t understand it that way sometimes i wonder maybe she does understand it but maybe she just thinks it’s better to get these talking points like the richest man in

The world he’s gonna come and take all our money and take all our tax money when it’s like if you actually just sit down for a few hours and think about it you realize how much of a benefit this would have been for the state of new york and for all the local communities around new york in general but i think it’s just a lot easier to get people going by saying all

The greediest corporation and their amazon there’s a billionaire jeff bezos we’re gonna take him down when it’s like you didn’t take him down he’s gonna go build that somewhere else now in that community is gonna thrive because of it well your community is gonna take a step back because you didn’t go through on this it’s very simple at than a day but some people

Just don’t understand it or they think it’s just better to talk around points rather than actually think this stuff out anyways i hope you guys enjoyed this day let me know what you think about amazon headquarters let me know if you like in to amazon headquarters to hire twenty five thousand employees in your city around the country i would love to hear from you

Guys or if you’re watching this i mean you’re an international viewer let me know if you would love the amazon to come hire twenty five thousand people wherever you are work at this particular time so i would love to hear from you guys in that comment section as always thank you for watching have a great day

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Why Amazon Pulling Out of New York is Huge News By Financial Education

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