Amazon wanted a really big tax break with HQ2

When Amazon went on a search for a second headquarters, it was motivated in part by looking for a big tax break:

When Elon Musk secured $1.3 billion from Nevada in 2014 to open a gigantic battery plant, Jeff Bezos noticed. In meetings, the Amazon.com Inc. chief expressed envy for how Musk had pitted five Western states against one another in a bidding war for thousands of manufacturing jobs; he wondered why Amazon was okay with accepting comparatively trifling incentives. It was a theme Bezos returned to often, according to four people privy to his thinking. Then in 2017, an Amazon executive sent around a congratulatory email lauding his team for landing $40 million in government incentives to build a $1.5 billion air hub near Cincinnati. The paltry sum irked Bezos, the people say, and made him even more determined to try something new.

And so, when Amazon launched a bakeoff for a second headquarters in September 2017, the company made plain that it was looking for government handouts in exchange for a pledge to invest $5 billion and hire 50,000 people. The splashy reality-television-style contest generated breathless media coverage, attracted fawning bids from 238 cities across North America and ended with Amazon deciding to split the so-called HQ2 between New York and Virginia. Then progressive politicians attacked the $3 billion in incentives offered by New York, and Bezos pulled out. Amazon was widely ridiculed for its failure to court New York politicians. To understand why that happened, Bloomberg interviewed 12 people familiar with Amazon’s effort. Their story, outlined here for the first time, depicts a team that became the victim of its own hubris. Bezos’s frustration with what he deemed meager government largess prompted executives to scrap lessons learned through the years in favor of an unapologetic appeal for tax breaks and other incentives.

This news came just as we finished introducing the concept of growth machines in my urban sociology class. In this theory, coalitions of political and business leaders drive development decisions with profits and growth in mind. In this particular case, Amazon looked to cut a deal with the city that was willing to give them the most. If Amazon chose their city, political and business leaders could claim they won because of all the new jobs plus the prestige of an Amazon headquarters while Amazon would profit from massive tax breaks. As I noted then, let the race to the bottom begin.

The biggest problem with all of this is not that there is competition between locations for headquarters and business activity. This has gone on for a long time and for a variety of organizations; read about the bids to land the United Nations headquarters. The issue is that the large tax breaks mean that some of the benefits of a business moving to a community are offset by tax breaks. And who benefits more in the end? The corporate leaders, not the community as a whole.

I can imagine a television game show format with all of this: a corporation says they want to expand and help a community or region along the way. Bidders/communities bring their pitch to the show, showcasing the best of their community (and the money). The corporation narrows it down and in the end names the one winner. Everyone else loses out (outside of making a public pitch regarding the best aspects of their community). It could be very entertaining.

A (real) pie chart to effectively illustrate wealth inequality

Pie graphs can be great at showing relative differences between a small number of categories. A recent example of this comes from CBS:

CBS This Morning co-host Tony Dokoupil set up a table at a mall in West Nyack, New York, with a pie that represented $98 trillion of household wealth in the United States. The pie was sliced into 10 pieces and Dokoupil asked people to divide up those pieces onto five plates representing the poorest, the lower middle class, middle class, upper middle class, and wealthiest Americans. No one got it right. And, in fact, no one was even kind of close to estimating the real ratio, which involves giving nine pieces to the top 20 percent of Americans while the upper middle class and the middle class share one piece between the two of them. The lower middle class would effectively get crumbs considering they only have 0.3 percent of the pie. What about the poorest Americans? They wouldn’t get any pie at all, and in fact would get a bill, considering they are, on average, around $6,000 in debt…

To illustrate just how concentrated wealth is in the country, Dokoupil went on to note that if just the top 1 percent are taken into account, they would get four of the nine pieces of pie that go to the wealthiest Americans.

A pie chart sounds like a great device for this situation because of several features of the data and the presentation:

1. There are five categories of social class. Not too many for a pie chart.

2. One of those categories, the top 20 of Americans, clearly has a bigger portion of the pie than the other groups. A pie chart is well-suited to show one dominant category compared to the others.

3. Visitors to a shopping mall can easily understand a pie chart. They understand how it works and what it says (particularly with #1 and #2 above).

Together, a pie chart works in ways that other graphs and charts would not.

(Side note: it is hard to know whether the use of food in the pie chart helped or hurt the presentation. Do people work better with data when feeling hungry?)

Font sizes, randomly ordered names, and an uncertain Iowa poll

Ahead of the Iowa caucuses yesterday, the Des Moines Register had to cancel a final poll just ahead of the voting due to problems with administering the survey:

Sources told several news outlets that they figured out the whole problem was due to an issue with font size. Specifically, one operator working at the call center used for the poll enlarged the font size on their computer screen of the script that included candidates’ names and it appears Buttigieg’s name was cut out from the list of options. After every call the list of candidates’ names is reordered randomly so it isn’t clear whether other candidates may have been affected as well but the organizers were not able to figure out whether it was an isolated incident. “We are unable to know how many times this might have happened, because we don’t know how long that monitor was in that setting,” a source told Politico. “Because we do not know for certain—and may not ever be able to know for certain—we don’t have confidence to release the poll.”…

In their official statements announcing the decision to nix the poll, the organizers did not mention the font issue, focusing instead on the need to maintain the integrity of the survey. “Today, a respondent raised an issue with the way the survey was administered, which could have compromised the results of the poll. It appears a candidate’s name was omitted in at least one interview in which the respondent was asked to name their preferred candidate,” Register executive editor Carol Hunter said in a statement. “While this appears to be isolated to one surveyor, we cannot confirm that with certainty. Therefore, the partners made the difficult decision to not to move forward with releasing the Iowa Poll.” CNN also issued a statement saying that the decision was made as part of their “aim to uphold the highest standards of survey research.”

This provides some insight into how these polls are conducted. The process can include call centers, randomly ordered names, and a system in place so that the administrators of the poll can feel confident in the results (even as there is always a margin of error). If there is a problem in the system, the opinions of those polled may not match what the data says. Will the future processes not allow individual callers to change the font size?

More broadly, a move like this could provide more transparency and ultimately trust regarding political polling. The industry faces a number of challenges. Would revealing this particular issue cause people to wonder how often this happens or reassure them that pollsters are concerned about good data?

At the same time, it appears that the unreported numbers still had an influence:

Indeed, the numbers widely circulating aren’t that different from last month’s edition of the same poll, or some other recent polls. But to other people, both journalists and operatives, milling around the lobby of the Des Moines Marriott Sunday night, the impact had been obvious.

Here are what some reporters told me about how the poll affected their work:

• One reporter for a major newspaper told me they inserted a few paragraphs into a story to anticipate results predicted by the poll.

• A reporter for another major national outlet said they covered an Elizabeth Warren event in part because she looked strong in the secret poll.

• Another outlet had been trying to figure out whether Amy Klobuchar was surging; the poll, which looked similar to other recent polling, steered coverage away from that conclusion.

• “You can’t help it affecting how you’re thinking,” said another reporter.

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Looking deeper at Wheaton, Illinois in Walmart’s “United Towns” ad

During the Super Bowl, Walmart ran an ad titled “United Towns.” From roughly 0:10-0:12, there is a a shot of Wheaton, Illinois looking south on Main Street. Here is the view:

WheatonWalmart2020

Four things of note from this short appearance of Wheaton in a national ad:

  1. As a number of Wheaton residents noted online, there is no Walmart in Wheaton. This is true but it obscures the larger story. One, how many Wheaton residents shop at Walmart (there are two within several miles of the town’s borders) as opposed to other big box stores (such as the Target in Wheaton or the several within a few miles)? Or, how many Walmart employees live in Wheaton? Two, there may be reasons Wheaton has no Walmart: it might not have wanted one. The busy stretch along Roosevelt Road is carefully controlled by the city – no big box stores. The largest shopping area, Danada, does not have any big box stores (though it now has three sizable grocery stores). Wheaton had one of the first Target stores in the area but it is located right on the edge of town and a proposed Home Depot across the street did not get approval and is now just past Wheaton’s northern border.
  2. The image captures a feature of Wheaton life: the passing of trains through the downtown and the community. Without the train line, there is no Wheaton (at least the one officially founded in the 1850s). The train may be a fact of life in Wheaton and numerous other American communities but it is not necessarily a welcome one since these trains can delay traffic.
  3. The ad on the whole promotes the ideas of small towns and community life. There are lots of shots of houses and older downtown buildings. But, is Walmart both a rural/small town as well as a suburban phenomenon? Without suburban stores – meaning Walmart locations along main roads, within sprawl, and dependent on driving – Walmart is not the company it is today. Like many Americans, Walmart might promote the ideal of small towns but not really live in that world.
  4. Connected to #3, the shot of a cute or quaint suburban downtown is an interesting contrast to the effect of Walmart in the American economy plus the larger changes in which they participated. Wheaton’s downtown is in okay shape but imagine what it could be without big box stores. More broadly, downtowns across the country pursued different options to counter the changes in retail and shopping in the postwar era (starting with shopping malls and strip malls and later extending to big box stores).

“Live from Des Moines and Miami”: twin spectacles of our time

At the gym a few days ago, I saw this headline about the temporary location of a morning news show: “Live from Des Moines and Miami.” The Iowa caucuses on Monday and the Super Bowl today in Miami share some characteristics:

1. Weeks and months of hype. The Super Bowl does not get as much lead up since the participants have only been known for two weeks but both are highly anticipated events. The Iowa caucuses only happen every four years so the combination this year is not normal.

2. The media attention paid to both. Even as they come at different parts of their respective processes – the caucuses come after a lot of campaigning and debates and then kick off primary season while the game concludes a popular NFL year – they are great material for news reports, opinion leaders, and everyone else in the media who might not always care about politics or football.

3. Competition and winners and losers. A football game has a clear winner and loser (though more unusual circumstances might cast a doubt on the victors). The caucuses are not so clear as the outcome requires interpretation but everyone will be looking to name the winners and losers once the voting outcome is known.

4. The entertainment value of it all. The football game is more clearly entertainment – it is just a game after all – but politics is in this camp these days as well. Both events are exciting and at least this year relatively close. With all this tension building, why not locate a morning show to live work from Des Moines and Miami?

In sum, these events seem to go together: the largest American sporting event takes place tonight and the fate of the free world/the most important election of our time/the race to beat the incumbent president really takes off tomorrow. For those who will be watching and broadcasting, may they be entertaining and full of high ratings.

Using helicopters to avoid driving in traffic

Highways and major roads in and around big cities can be full of traffic. For those with resources, traveling by helicopter can be much quicker:

But the use of commuter helicopters in the greater Los Angeles area is probably second only to New York City, said Kurt Deetz, who ferried Bryant from 2014 to 2016 as a former pilot for the charter service Island Express Holding Corp.

The customer base skews rich, famous and traffic-averse. In 1997, for instance, Apple Inc. co-founder Steve Jobs got permission from officials in Richmond, Calif., to build a heliport that was only a short drive from his office at Pixar Animation Studios.

“It’s about time and money,” Deetz said. “If you were to go from Orange County to Los Angeles on a Friday at 4 p.m., how long would that take you? It’s convenience.”…

The choppers are used by “everyone from celebrities to actors to investment guys and simply people with a lot of money,” Deetz said. “It’s not a poor man’s way of transportation.”

Perhaps this information would fit into a class-based system of daily transportation in the United States (in broad strokes): poor and working-class with more reliance on mass transit where available, people of most classes looking to drive themselves if they have the resources, and then the wealthy seeking alternatives (ranging from having drivers or using helicopters and planes). Driving regularly signals a level of independence and status that many Americans want – unless they have so much money that they can get around everyone else who wants to drive.

The article mentions expanding opportunities for helicopter transport in Los Angeles as well as the possibility of flying cars or vehicles that can vertically land and take off. Would there be a point where there are so many trips by those vehicles that the advantage of going by air is decreased?

Depicting heaven, hell, and in between through mid-century modern, the 1980s, and the Getty Center

The creators of The Good Place aimed to create a specific aesthetic for the locations on the show:

Rowe: There’s a signature that is heavily inspired by mid-century modern. Not just because it looks cool and clean, but because [the creative team] made a very deliberate dedication to a certain style per world. So the ’80s were the Medium Place. The Mad Men era was the Bad Place. The heightened, more European, I would say, version of that influenced the backlot. Dan Bishop created that cute, charming, endearing vibe from European villages. Those ice-cream colors and those colorful pops in our flowers—those defined what the rest of the world would look like.

It’s very important to point out that [Ted Danson’s character] Michael was an architect, and that was a character choice from Mike Schur that influenced everything from there. What architect going to school, at any stage doesn’t love mid-century modern? Plus the age of the actor—he’s all dressed up. If he was designing kooky ’80s architecture or ’70s skyscrapers, I don’t know if those would fit.

The focus on European villages gets at some features of desirable places: existing at a human scale, full of street-level activity including food and shopping alongside people talking and walking, and a relatively small set of people. (One feature of these some villages that might be missing on the TV show: the homes seem to be set apart from the village area, separating home and work.) While the village streetscape could be part of a larger city (perhaps each neighborhood or district has a village area like this), it hints at more small-town life. Residing in smaller-scale villages might fit better with human history than the substantial urbanization of the last two centuries. At the same time, we view big cities as centers of progress and human achievement. Perhaps the choice of villages hints at human desires for social connections and a human scale rather than big cities. (But Michael’s depiction is not what it seems – so is this commentary about European villages?)

As for heaven itself:

Rowe: When heaven showed up, it was pretty much unanimous right away that they wanted to shoot at the Getty [Center, an art museum in Los Angeles]. There was a lot of discussion that happened to help the Getty get on board, because obviously they have a brand they want to protect. The location manager went and said, “It’s a show about heaven, and we’re showing the Getty as a place of paradise.”

We actually didn’t do that many things there, because the architecture speaks for itself. People breeze through that museum, and you can ask them, “Oh, did you see any paintings?” And they’re like, “Yeah, I kinda saw the modern stuff upstairs, but I was basically outside the whole time.”

The Getty Center is indeed a unique building and it connects modern architecture, gardens, and a view overlooking Los Angeles. As an oasis set apart from the Los Angeles bustle, I could see how it would be compared to heaven:

Getty2

Comparing depictions of heaven across time and cultures could prove to be a fun exercise. How much do the depictions reflect contemporary tastes or standards? If the architects of today or those with architectural knowledge generally like mid-century modern, this is what they might prefer heaven to look like. Would Christians throughout the United States agree? There have been too many depictions of clouds for that not to show up somewhere and ancient Greek architecture – familiar to Americans in a number of important buildings including government structures – might be popular. Would heaven look more like the nondescript suburban megachurches of today or more like a Gothic cathedral? Or, would Americans prefer heaven to look like mansions in a well-kept suburb or prefer it to be more about nature? And global depictions would likely differ significantly from these options.

Researching the downsizing claim: “every single person I interviewed who has made the transition says they are so happy they did”

A recent book looks at downsizing and the author says everyone who does it is pleased with the outcome:

“It scares people to think of moving into a smaller space, but every single person I interviewed who has made the transition says they are so happy they did,” Koones says. “Time and again, people used the word ‘liberated’ to describe their move to a smaller space, with homes requiring far less time and money to maintain.”

Who are the people downsizing?

“It’s not just empty nesters anymore,” she adds. “Younger people too are in couples where they’re both working, they’re having children later, they want to be active and they don’t want to be doing maintenance on the weekends. They don’t want to be tied down to mowing lawns and doing all the other chores that come with living in a big house.”

Living more sustainably and saving on energy costs is also part of the attraction of downsizing, Koones says.

So is aging in place. There are people of all ages looking for features like a master bedroom on the main floor, or barrier-free showers.

I would be interested to see academic studies of this shift as it could help answer some questions regarding downsizing and the choices people make regarding homes. Here are some of the questions:

1. How widespread is downsizing? My guess is that it is a pretty small movement. In a related question, how do individual decisions to downsize work at a broader level? These choices could influence families, neighborhoods, communities, builders, and others.

2. How much do the people who are downsizing share in common? There are multiple possible reasons for downsizing – economic reasons (including saving on energy costs), wanting less space to maintain, environmental imperatives, prizing location over a home – and it would be interesting to look at more prevalent factors. A similar question: what drives people to downsize (when Americans as a whole are pushed toward larger homes)? Or, is there a particular cultural ethos about downsizing that can be persuasive for some and not others?

3. What are satisfaction rates after downsizing? Are downsizers 100% satisfied or somewhat satisfied and what downsides do they report? Do they stay in smaller homes for the long-term?

4. How exactly should we define downsizing? It looks like this book primarily focuses on single-family homes. Others might see a move away from a single-family home and its property to an apartment, condo, or townhome as downsizing or accomplishing some of the same goals even if the difference in square feet is not that much. Is choosing to live in a multigenerational home a form of downsizing if households are combined and there is reduction of square feet per person? An involuntary move to a care facility might be technically downsizing but it does not carry the same agency.

Looking at a single suburban district to hint at 2020 elections

The quest to read the suburban political tea leaves for 2020 is on with eyes focused on a Texas legislature race outside of Houston:

The legislative stakes of Tuesday’s election in House District 28, a rapidly-diversifying suburb of Houston, are relatively low. Whoever wins likely will not even cast a single vote before they have to face re-election in November, as the Legislature does not meet this year. And even if Markowitz wins, Texas Republicans would still control the House by eight seats.

But Democrats are itching to demonstrate on Tuesday that Texas is a competitive state that will be up for grabs in 2020. Texas has 38 votes in the Electoral College; only California has more, with 55. Many say that the district, which is part of the ethnically diverse Fort Bend County, is representative of the demographic changes happening in suburbs around the Lone Star state — trends that could shift electoral results in Democrats’ favor.

“Fort Bend County is representative of what is happening in Texas writ large. There are a lot of immigrants,” said Brendan Steinhauser, a Texas-based Republican strategist who ran GOP Sen. John Cornyn’s 2014 campaign. “Republicans want to hold this and need to hold this to say: ‘Look, we can stem the tide of the Blue Wave that everyone is talking about.’”…

Former Vice President Joe Biden, Sen. Elizabeth Warren, D-Mass., and former New York City Mayor Michael Bloomberg, have all endorsed Markowitz. Former Secretary of Housing and Urban Development Julián Castro, a native of San Antonio and a former 2020 candidate, has campaigned for her in the district. And O’Rourke, fresh off his failed presidential bid, has spent days at a time in the district, energizing the Democratic base and personally going door to door urging people turn out for Markowitz.

With suburban voters in the balance, both parties plus observers are looking for signs of how suburban voters as a whole will fall in the November 2020 elections. Is demographic change enough to lead to a shift in party affiliation? Will national issues, particularly with the president, dominate or will more local concerns prove influential? How much do individual candidates in such districts matter versus broader patterns and influences?

From a Houston news source:

“Fort Bend County is one of the most diverse counties in the nation. Now we have Indians, Asians, Mexican, Hispanic background, Cuban, Latin American, from all over the world,” Cantu said….

But Republicans, like Jason and Elizabeth Walker, have been relocating to the district too. The couple moved to Katy from San Francisco 10 years ago. Jason works in human resources and is a GOP precinct chair. He said the region may have gotten bigger, but people still care about the same issues, “which are keeping taxes low, having good schools…and keeping Fort Bend a place that is a great place to live for families.”

While both political parties would want to secure districts like these for their side, it looks like a number of suburban districts will be contestable in the near future. And suburbs will continue to change, pushing both parties to look for messages and platforms that resonate with suburban voters.

Will more cameras tracking public activity push Americans to be even more private?

More communities are putting together networks of cameras that show what is happening in public spaces. Some of this comes at the municipal level, often in the name of preventing or solving crimes, and is increasing happening at the private level as homeowners add cameras to monitor around their home.

If people are concerned about the rise of cameras and analysis (particularly through algorithms and predictive software), will this change their behavior? The United States already has a tendency in recent decades toward private spaces. Scholars and commentators lament the decline of public spaces, the shift toward privatized settings between work and home (think Starbucks or shopping malls), and the primacy of single-family homes. Imagine a society where people are fearful of cameras and decide to curtail their public activity. A variety of technologies could help them limit the time they spend outside their residences: think working from home, grocery and food delivery, and the delivery of all sorts of goods and services to an address.

If this comes to pass, the public realm might be even more impoverished. Will the often think social life and outside activity of suburban neighborhoods continue to dry up? Where will people of different backgrounds and interests interact? What will happen to the thrill of being around crowds and dynamic activity? Would this simply lead to more suspicion and calls for even more cameras and surveillance to figure out who would be so bold to go out (or to turn the surveillance into more private spaces)?

This all may sound pretty dystopian. When I walk down the street in my neighborhood or my community (regular activities for me), I rarely think about the cameras that might be watching. I try to be observant and I do not notice too many surveillance devices. My neighbors may indeed be watching (or able to watch) but it does not feel like a threat. But, sometime soon, just the threat of being watched, let alone different actors using the video and data, may influence the feeling of community.

(Of course, it may not be the cameras that truly could limit public life. Perhaps the true threat comes from the smartphones we all carry and that track us.)