AOC and Amazon and Opportunity cost


Opportunity cost is a simple thing for people to follow and understand but for some reason for many politicians, it just does not compute to them. Socialists isn’t a term to be tossed around lightly but the new popular guard for the Left in America is the go-to talking points of populist socialist nonsense that is touted as progressive and new but in no way new to anyone paying attention. The evidence for this is no better found than in the way the left-leaning Democrats in New York dealt with the Amazon Headquarter situation.

AOC (Alexandria Ocasio-Cortez) the new rookie Congresswoman out of New York was instrumental in pushing Amazon out of the state and removing them completely out of the running for their new secondary headquarters. The big gripe that the left had about the Amazon deal was the tax breaks offered to Amazon for creating all the jobs and stimulation of the economy and prestige that Amazon second headquarters would bring.

And this is where it becomes clear that the new progressive left just simply does not understand the Opportunity cost reality. Tax income only takes place if the transactions that yield those taxes happen. When they essentially forced Amazon’s hand and pushed them out of the state AOC made statements claiming victory over big business and saving the state millions in what would have been lost tax revenue.

Sounds good right? Only one issue though. When Amazon left the state all of those taxable events and benefits that Amazon would have brought no longer will happen. The tax breaks that the state offered would have indeed been less than the standard, but because Amazon will take those jobs and transactions elsewhere the state will now lose out on all of the benefits and even remaining base taxable income that would of taken place.

So when AOC claims victory over big business she misses the point of the true economic reality of what was at stake. An actual victory would have been Amazon building and coming into the state with zero tax breaks. That would have actually generated the state more than the original deal and still garnered all the positives. Instead, she actually cost the state billions in lost revenue and sent a clear message to the country that New York is not the place for business.


About Steve Kline 12 Articles
I've worked in and covered politics for the past 15 plus years. I'm a fiscal conservative who is ready to see this country return to a way of government that does not trample on people's rights left or right.

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