4 ms·
I agree about the game theory/race to the bottom as an incentive. I think there are more great reasons compounding these decisions that others point out too. L
by dillondoyle 5y ago
I agree about the game theory/race to the bottom as an incentive. I think there are more great reasons compounding these decisions that others point out too.
Large corporations love to hold cities and states hostage and make them bid against each other. AMZN is a great example with their campus 2 bidding war. I am glad NY had the cajones to stand up to them.
Most cities and states even have dedicated EcoDevo staff to actively seek out these companies.
Cities and states compete to give the largest tax benefits, usually something like you don't have to pay ___ taxes for __ years (like 10, worth tens of millions). Plus they'll spend on infrastructure and give preferential zoning, city regs, etc.
Sure having more jobs probably creates more incoming/housing taxes for the city.
But states like Texas win this race to the bottom (TSLA and Musk personally) and in my opinion the costs of these corporate incentives (imho handouts) are just passed along to citizens in the cost of less societal services and needs, less school funding, less everything. Just a funnel up.
- nebula8804 5y agoMusk may be an outlier. He is part of a collective of libertarian techbros who have taken what they can out of California and are now looking for a new set of suckers. Texas has a history of playing second fiddle to California so they were an obvious choice. Yes other tech companies are also moving to Austin and I think that is more a sign of some millennials and other young professionals opting to leave California for a lower cost reasonably sane area. Its still does not seem like massive California sized numbers though. We just have to wait and see. I'm still long California though.