Wednesday, November 14, 2018

Thinking some more about Ocasio-Cortez and the Amazon move to the New York area

Here's the thing: this situation points up a phenomenon that anybody interested in the preservation of economic freedom had better get wise to.

When government gets involved in market distortion of any kind, the private entity involved forfeits the right to complain about heavy-handed dealings. Ocasio-Cortez has found an opening: the special tax breaks offered to Amazon to entice it to the area. She then is in a position to say, "Alright, what kinds of jobs are you going to offer? What will they pay? Will they go to people in the area? Will workers be allowed to collectively bargain?" And the truth is, Amazon ought to feel obligated to provide an answer.

A few things about this situation reflect the unprecedented nature of our times. Amazon is a tech company, itself a relatively recent development. And it's one of the top five tech companies, with global reach, and cultural and political influence. Its whole business model is based on instantly gratifying the consumer. It's telling that it attained its dominance at the same time that the Sears catalogue became obsolete. So Amazon's market is guaranteed. If people can get what they want within hours, they're not going back.

And tech companies, like huge corporations in any field, have management that leans left. Diversity and sustainability and all that hooey. So they know the right words to say to the also-left-leaning, central-planning-loving economic-development people in post-America's cities.

But that's not going to be enough for this new breed of leftist. We can see what we're in for by noting that Ocasio-Cortez has already participated in a why-aren't-you-making-climate-change-an-urgent-priority protest outside Nancy Pelosi's office. This chick is a firebrand.

You know what's urgent? Defending the actual free market. Getting government completely out of the transactions that people and the organizations they form enter into with one another.

And that means taking on the corporatists and the socialists alike.

UPDATE: I found this Erick Erickspn tweet about the matter apropos:

When a gov't starts handing out tax dollars to attract particular businesses to a state, it gives up on creating a fair and reasonable business environment because it can carve out exception for preferred companies. But that puts existing businesses in a state at a disadvantage.
Exactly.

1 comment:

  1. I owned a business and lived in small town NY state for 20 years. The town was always inticing business to come to the area, they would stay a few years, take advantage of the hand outs then fail or leave. In the meantime we had some of the highest taxes in the country and a very well paid public sector administering all of this. It would have been easier to have low taxes and be competitive In the first place. Eventually many of the business and productive people left the state because of the high tax burden, causing the taxes to increase even more..... I think you get the idea here....... there’s no free lunch!

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