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1 1 (March 8, 2019)

handle is hein.crs/govyis0001 and id is 1 raw text is: aCongressional SResearch Service Amazon's HQ2 and Economic Development: Perspectives and Policy Options March 8, 2019 In February 2019, facing political and public opposition, Amazon canceled the New York portion of its planned second headquarters (HQ2). Originally announced in November 2018, HQ2 was going to be split between the Northern Virginia suburbs of Washington, DC, and Long Island City, NY, which Amazon claimed would each gain as many as 25,000 direct jobs as a result. According to its cancelation announcement, Amazon plans to proceed with its Virginia site, along with a smaller third site in Nashville also announced last November that Amazon suggested would generate 5,000 additional jobs. Amazon's announcement followed an approximately year-long process in which over 238 localities competed to attract HQ2. Overall, reactions to Amazon's initial announcement were mixed, reflecting contrasting views of economic development prioritizing economic growth on the one hand, and social welfare on the other. While proponents of the Virginia and New York bids celebrated the expected economic and job growth, detractors claimed the value of robust economic incentives-nearly $3 billion in New York, about $750 million in Virginia, and hundreds of millions in additional indirect incentives-would be better used to address poverty and economic inequality. Amazon's selections also reinforced concerns over mega- regions like New York City and Washington, DC, attracting outsized economic gains while other regions plateaued or declined. The debate over HQ2 has led to questions over the justifiability of economic incentives for large corporations like Amazon, how those incentives play out in competition between states and localities, and the role of economic development policies in general. Growth- and social welfare-oriented economic development strategies provide different policy options and potential outcomes. While a growth-oriented view tends to focus on top-line macroeconomic performance, a social welfare approach often emphasizes ameliorating inequality and poverty. However, these goals are not necessarily incompatible and may be complementary. Reconciling these pnionities pose challenges and opportunities to Congress. With numerous congressional statements about HQ2 and its perceived economic development viability, this Insight explores how HQ2 reflects certain elements of both approaches to economic development, and provides information on its broader implications for federal approaches to economic development policy. Congressional Research Service https://crsreports.congress.gov IN11070 CRS INSIGHT Prepared for Members and Committees of Congress

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