What’s less apparent are the second-order effects that will be set in motion by…
What’s less apparent are the second-order effects that will be set in motion by Amazon and Google’s expansion plans. Higher costs and congestion brought about by all these new tech workers in Northeast hubs will inevitably lead to some other workers and companies deciding against moving to New York and Washington. The costs might even prompt existing workers and companies to start searching for cheaper pastures.
Some may move to similar metro areas such as Boston, Philadelphia or Chicago, while others may go to smaller areas such as Raleigh, Nashville or Atlanta. Perhaps the $150,000 tech jobs will go to the richest cities. But the $90,000 tech jobs, unable to compete on cost, will have to go somewhere cheaper. The ripple effects will spread prosperity to more metro areas.
The University of Georgia system shows how this works as it manages enrollment growth across its campuses. A decade ago, the system explicitly decided to increase capacity in the metro Atlanta area, both to better serve its growing population and as an economic development strategy. Since 2008, the main campus of the University of Georgia in Athens has seen its student body grow by just 12.8 percent. Enrollment at Georgia State in downtown Atlanta, meanwhile, has grown by 87 percent, and Kennesaw State, to the northwest of the city, it has grown by 65 percent. 1
Amazon’s HQ2 Will Help Other Cities, Too
As New York and Washington get more crowded and expensive, tech companies will look elsewhere to expand.
את התגובות המקוריות לפוסט ניתן לקרוא בתחתית דף הפוסט הנוכחי באתר או בקישור לפוסט בפייסבוק וכמובן שאתם מוזמנים להצטרף לדיון
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