Well, what did you expect? With 238 entrants and 20 finalists, the Amazon HQ2 location tournament resulted in a resounding victory for Amazon: Billions of dollars in subsidies and binders full of detailed information on the contestants. Plus, we got a surprise twist at the end, when Amazon announced it would choose two “headquarters” instead of one. Of course, I never thought that having two headquarters made economic sense (“Doesn’t that defeat the idea of a headquarters as a central coordinating site?” I asked last year), and the same is even truer when you have three “headquarters.”
Leaving aside how Amazon plans to coordinate three headquarters’ operations, the subsidies boggle the mind and insult our intelligence. Let’s lay out what we know about the subsidies so far, remembering that there are other subsidy elements that are likely to be discovered as things play out. That is what happened with Foxconn, for example: Its subsidies in Wisconsin were originally reported as $3 billion in state subsidies plus local tax increment financing (TIF). By June of this year, Good Jobs First was reporting that further subsidies plus a huge TIF award brought the total to $4.8 billion (Megadeals spreadsheet, June 2018 update; download here). Something is likely to up the total incentives Amazon will receive, above what we know today.