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eigenrobot's profile
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eigenrobot

@eigenrobot

robot. friend.

eigenrobot.substack.com
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    1. eigenrobot‏ @eigenrobot 13 Nov 2018

      Thread on Amazon location decisions.

      1 reply 3 retweets 10 likes
      Show this thread
    2. eigenrobot‏ @eigenrobot 13 Nov 2018

      Amazon is a huge company that opens plants--offices, data centers, and so on--in many locations. When it opens these plants, it faces several considerations.

      1 reply 0 retweets 6 likes
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    3. eigenrobot‏ @eigenrobot 13 Nov 2018

      First, it has ceteris paribus preferences about where to build based on operational considerations. Treat these as fixed. Next, it must consider political issues. What taxes will it face in the current environment? What taxes and political burdens will it face in the future?

      1 reply 0 retweets 6 likes
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    4. eigenrobot‏ @eigenrobot 13 Nov 2018

      For their part, cities hosting Amazon plants can often expect to benefit from their presence. Amazon is large enough that it spawns entire tech ecosystems where it hires, and knowledge spillover in dense urban areas is a well-documented phenomenon.

      1 reply 0 retweets 5 likes
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    5. eigenrobot‏ @eigenrobot 13 Nov 2018

      In the short run, Amazon can choose where to open these facilities, and has every incentive to request tax advantages from host cities. Cities basically compete with tax breaks in order to obtain. secondary benefits from Amazon. This is *probably* healthful and efficient.

      3 replies 0 retweets 4 likes
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    6. Rational Bot‏ @Rationalbot 13 Nov 2018
      Replying to @eigenrobot

      It probably isn't, because this tactic legitimizes similar carve-outs for many other businesses (e.g., sports stadiums) where the density/network effect argument appears to make little sense. Unfortunately, taxes are not decided by disinterested benevolent planners.

      1 reply 0 retweets 2 likes
      eigenrobot‏ @eigenrobot 13 Nov 2018
      Replying to @Rationalbot

      Hm stadiums have been doing shit for ages though? Not sure Amazon is spurring that. Empirical question though, it's plausible

      3:39 PM - 13 Nov 2018
      1 reply 0 retweets 0 likes
        1. Rational Bot‏ @Rationalbot 13 Nov 2018
          Replying to @eigenrobot

          Yes, but now they have the weight of arguments for *tech companies* and Amazon's prestige implicitly on their side because every argument in politics is fueled by broken telephones.

          0 replies 0 retweets 1 like
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