By now everyone knows that Amazon decided not to go ahead with a plan to build a new headquarters (H2) in New York City due to local political opposition. Rep. Alexandria Ocasio-Cortez applauded the decision as a victory for New York, which gives us an opportunity to understand how her kind of socialism works.
Rep. AO-C suggested New York was saving $3 billion which could be used for teachers salaries and other benefits. Good idea? Well, it would be except there is no $3 billion. New York was not giving Amazon $3 billion to build in New York, they were getting a $3 billion tax break. So much for the value of a degree from Boston University in economics. She doesn’t know the difference between a tax break and a gift.
But you may be saying, a $3 billion tax break is still a bad idea. It’s too much. Except Gov. Cuomo and Mayor de Blasio forgot to explain that the $3 billion tax break was a deduction from the $30 billion Amazon promised to pay into New York City and New York State coffers. In other words Ocasio-Cortez refused $27 billion for New York because Amazon wasn’t going to have to pay the full $30 billion they promised. Does that make any sense?
But what does that have to do with socialism? Socialism is about putting in power representatives of “the working class” who will decide what’s best for everyone. It’s not about redistributing the wealth. That’s a myth. It’s not about giving everyone a job. That’s also a myth. Those are the things they say it means, but history tells us that never happens, and it never can.
They rejected Amazon because they were going to get a 10% tax break. As a result, they threw away 25,000 good paying jobs––jobs that will now go to people in other parts of the country––and lost the multiplier effect on the local economy in terms of people buying housing, home furnishings and appliances, clothing, electronics, going out to eat, etc.
Socialism is about making ideological decisions at the expense of the needs of the citizenry. Amazon is big. Amazon is bad. Socialism is inherently undemocratic. Elections are used to gain power followed by corruption of the electoral process in order to retain power. If Americans want to understand how socialism would work in America, we’ve just seen a perfect example.