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In Superstar Cities, the Rich Get Richer, and They Get Amazon (NYT)

In Superstar Cities, the Rich Get Richer, and They Get Amazo...
community_account
  11/08/18
, wrote the woman who lives in San Francisco, in her article...
A Jurisprudence is Performed
  11/08/18
Massive Chicago burn. Lol if it goes to Long Island City....
average/ordinary/typical citizen/person
  11/08/18
...
community_account
  11/08/18
WE'RE THO THPECIAL
2 Front Doors
  11/08/18
NYT: Midwesternmos = dumb
(O)||||||(O)
  11/08/18
...
community_account
  11/08/18
NYT: Midwesternmos = dumb. Also, why do they hate us so much...
gedood persoon
  11/08/18
...
Gen. Elba (Space Force Lib-Command)
  11/12/18
“If you are in the business of making new things &mdas...
2 Front Doors
  11/08/18
OK Enrico, would u rather live in a world without soap and t...
A Jurisprudence is Performed
  11/08/18
No shit cities benefit from economies of scale and network e...
un ragazzo che scrive nel vuoto
  11/08/18
Not the only cr buddy.
So we looked at the data
  11/08/18
*Meant for poormos seeking to make money Obviously if you...
un ragazzo che scrive nel vuoto
  11/08/18
this is true, as far as it goes, but the interesting part is...
A Jurisprudence is Performed
  11/08/18
Lmfao
un ragazzo che scrive nel vuoto
  11/08/18
Enjoy your 1500/month bunk bed in a 50 person "co-livin...
Social Justice Reservist (Space Force Ret.)
  11/08/18
180 moniker
un ragazzo che scrive nel vuoto
  11/08/18
How "high-skilled" do you have to be to work at th...
Guy Debord
  11/08/18
Lmfao
un ragazzo che scrive nel vuoto
  11/08/18
The point of the article is that only certain “superst...
community_account
  11/08/18
If GC means everyone lives like its 1989 Soviet Russia why n...
ARE Reptile
  11/08/18
Because our productivity blows Russia’s out of the wat...
un ragazzo che scrive nel vuoto
  11/08/18
Lives in a 350sq foot Long Island City studio. Pays $3k a mo...
ARE Reptile
  11/11/18
*lives in soviet style concrete bunkers passed off as public...
un ragazzo che scrive nel vuoto
  11/12/18
...
community_account
  11/08/18
...
community_account
  11/11/18


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Date: November 8th, 2018 11:05 AM
Author: community_account

In Superstar Cities, the Rich Get Richer, and They Get Amazon

New York and Washington are leaving the rest of the country behind. Companies like Amazon explain why.

The New York Times

By Emily Badger

Nov. 7, 2018

Image

A view of Crystal City in Arlington, Va.

A view of Crystal City in Arlington, Va.CreditJared Soares for The New York Times

In the end, even Amazon has behaved according to this rule: In the modern tech economy, cities that already have wealth, opportunity, highly educated workers and high salaries will just keep attracting more of them.

Of all its options across North America, the company appears to have narrowed its sights to New York and suburban Washington for a huge expansion of high-paying tech jobs. The 11th-hour decision to split its “second headquarters,” as Amazon is expected to announce shortly, makes the pattern only more glaring.

A small number of rich and internationally connected cities keep increasing their economic advantages — and as a result, the inequality widens between them and everywhere else.

Because of the pull of “superstar” cities, economists and policymakers fear what will happen elsewhere if the winners keep winning while many smaller communities are left behind. It’s possible Amazon executives genuinely believed a year ago that they might find a more surprising home (many observers are not so charitable). But, ultimately, the superstar magnet pulls them, too.

“It’s just absolutely hard-wired into technology economies,” said Mark Muro, a senior fellow at the Brookings Institution. “It’s not just a sort of interesting thing that happens — it’s inherent to the technology.”

Tech companies feed on highly educated and specialized workers, specifically dense clusters of them where workers and companies interacting with one another are more likely to produce new ideas. Washington and New York, as it turns out, are two of the most highly educated regions in the country, with already large pools of tech workers.

“In that sense, we look naïve in even raising the question that this could have gone to a different kind of Midwestern, heartland place,” Mr. Muro said. “There wasn’t really an alternative.”

By choosing to go where high-skilled workers and other prosperous companies already are, Amazon will effectively ensure that more companies follow it in turn. Opportunity will concentrate further. The differences between, say, New York and Scranton, Pa., will widen. This divergence, underway for about 30 years, has accelerated since the Great Recession.

Between 2010 and 2017, according to Brookings, nearly half of the country’s total employment growth occurred in just 20 large metro areas (places that are home to about a third of the population). The Washington and New York regions alone accounted for about half of the net increase in business establishments across the country between 2007 and 2016, according to the Economic Innovation Group, which tracks economic inequality across the country.

“This is a very rational decision for Amazon to make in the micro; in the macro, it reinforces a really challenging trend for the U.S. economy,” said John Lettieri, the president of E.I.G. “The divide between prosperous and distressed regions is growing wider. And it’s because of things like this.”

In previous economic expansions, E.I.G. has found, the benefits were more broadly felt, and growth was driven by more places, including rural communities. Today, data points about the national economy no longer describe well what’s happening on the ground in many places.

Part of what has changed is that the American economy has become dominated more by companies like Amazon, which produce services instead of manufactured products, and thus employ software engineers instead of assembly line workers.

Drop a big Amazon headquarters into Washington or New York, and economists expect the 50,000 workers there to be more productive than if the same 50,000 jobs were dropped into Indianapolis. Simply putting them in New York, near so many other tech workers, increases the likelihood that Amazon invents more services, connects to more markets, makes more money.

Those added benefits are so strong, economists say, that it’s worth it to companies like Amazon to pay more — a lot more — for office space and employee salaries in New York City.

“If you are in the business of making new things — whether it’s a new product, or a new way of delivering things, or a new service — and it’s something that is unique, and it keeps changing and it needs updating, the most important factor of all is human capital,” said Enrico Moretti, an economist at the University of California, Berkeley. “It’s not like making soap, or like making textiles.”

Mr. Moretti’s latest research suggests that scientists who move from small to larger clusters of experts produce more inventions, a pattern that plays out regularly in Silicon Valley. Looked at another way, a majority of patents come out of the largest metro areas. If we spread their inventors evenly across the country, Mr. Moretti said, we’d probably have significantly less innovation in America.

In its request for proposals, Amazon asked for good airport connections, public transit and strong universities. But it’s not quite right to say that New York and Washington will probably win because they have these things. Rather, the presence of these amenities makes possible what Amazon was really looking for: that intangible thing that happens when certain kinds of workers are clustered in the same place.

Communities that vowed to rapidly build transit from scratch missed that point. But of course the Amazon request didn’t say, “We’re looking for knowledge spillovers and agglomeration effects.”

Image

Long Island City in Queens is expected to share the spoils with Crystal City in Virginia.

Long Island City in Queens is expected to share the spoils with Crystal City in Virginia.CreditJoshua Bright for The New York Times

In one sense, it’s good for the country that companies like Amazon are as productive as they are, where they are, thanks to these forces. But higher national productivity is no comfort to communities that aren’t gaining jobs. Reconciling the two sets of places is one of the country’s deepest economic challenges.

“This is too profound a structural shift to reverse,” Mr. Lettieri said. “It’s not going to reverse. That’s just the nature of the economy today.”

But maybe we can slow down this shift, he said, or find better ways to ensure that more people get to benefit from what’s happening in superstar cities, and that more places get to join in this process. Mr. Lettieri argues that what’s good for New York doesn’t have to be bad for other parts of the country.

It plainly looks that way in Amazon’s case, however, because of the public sweepstakes the company invited. These 50,000 jobs that look likely to go to New York and Washington are 50,000 jobs that won’t go to smaller finalists like Columbus or Nashville. Or to even smaller places, like Tucson or Fresno, that dropped out of the running months ago.

Emily Badger writes about cities and urban policy for The Upshot from the San Francisco bureau. She's particularly interested in housing, transportation and inequality — and how they're all connected. She joined The Times in 2016 from The Washington Post. @emilymbadger

https://www.nytimes.com/2018/11/07/upshot/in-superstar-cities-the-rich-get-richer-and-they-get-amazon.html

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189140)



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Date: November 8th, 2018 11:08 AM
Author: A Jurisprudence is Performed (You Have the Plague)

, wrote the woman who lives in San Francisco, in her article for the New York Times.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189156)



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Date: November 8th, 2018 11:09 AM
Author: average/ordinary/typical citizen/person

Massive Chicago burn.

Lol if it goes to Long Island City.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189171)



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Date: November 8th, 2018 3:06 PM
Author: community_account



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37191297)



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Date: November 8th, 2018 11:12 AM
Author: 2 Front Doors

WE'RE THO THPECIAL

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189181)



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Date: November 8th, 2018 11:12 AM
Author: (O)||||||(O) (A Game of)

NYT: Midwesternmos = dumb

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189184)



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Date: November 8th, 2018 12:02 PM
Author: community_account



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189588)



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Date: November 8th, 2018 12:02 PM
Author: gedood persoon (£J£)

NYT: Midwesternmos = dumb. Also, why do they hate us so much?

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189591)



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Date: November 12th, 2018 12:17 PM
Author: Gen. Elba (Space Force Lib-Command) (#MAGA My Attorney Got Arrested)



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37216010)



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Date: November 8th, 2018 11:14 AM
Author: 2 Front Doors

“If you are in the business of making new things — whether it’s a new product, or a new way of delivering things, or a new service — and it’s something that is unique, and it keeps changing and it needs updating, the most important factor of all is human capital,” said Enrico Moretti, an economist at the University of California, Berkeley. “It’s not like making soap, or like making textiles.”

ok... now, what about the physical goods that Amazon sells? where are those manufactured? who has those jobs? hmmm.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189188)



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Date: November 8th, 2018 11:19 AM
Author: A Jurisprudence is Performed (You Have the Plague)

OK Enrico, would u rather live in a world without soap and textiles, or a world without amazon.com?

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189209)



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Date: November 8th, 2018 11:16 AM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

No shit cities benefit from economies of scale and network effects. Only cr is to make peace with GC and accept its dominance over our lives not flame

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189196)



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Date: November 8th, 2018 11:18 AM
Author: So we looked at the data

Not the only cr buddy.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189203)



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Date: November 8th, 2018 11:21 AM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

*Meant for poormos seeking to make money

Obviously if you’re already rich you can do what you want

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189220)



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Date: November 8th, 2018 11:21 AM
Author: A Jurisprudence is Performed (You Have the Plague)

this is true, as far as it goes, but the interesting part is that you get to define what "rich" means

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189225)



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Date: November 8th, 2018 11:23 AM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

Lmfao

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189234)



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Date: November 8th, 2018 11:22 AM
Author: Social Justice Reservist (Space Force Ret.)

Enjoy your 1500/month bunk bed in a 50 person "co-living" space with 2 toilets! (GC)



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189231)



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Date: November 8th, 2018 11:24 AM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

180 moniker

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189242)



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Date: November 8th, 2018 11:26 AM
Author: Guy Debord

How "high-skilled" do you have to be to work at this new Amazon HQ? And would it really make a difference if the person you hired in NYC wouldn't take the job in Columbus but you could hire someone comparable in C'bus?



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189259)



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Date: November 8th, 2018 11:28 AM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

Lmfao

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189277)



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Date: November 8th, 2018 11:31 AM
Author: community_account

The point of the article is that only certain “superstar” cities likely have large spillover effects from lots of talent, ideas, initiative, and money.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189300)



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Date: November 8th, 2018 11:27 AM
Author: ARE Reptile

If GC means everyone lives like its 1989 Soviet Russia why not just not do GC and do Soviet socialism instead? It was more morally rewarding.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189274)



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Date: November 8th, 2018 11:29 AM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

Because our productivity blows Russia’s out of the water

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37189285)



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Date: November 11th, 2018 10:17 PM
Author: ARE Reptile

Lives in a 350sq foot Long Island City studio. Pays $3k a month for the privilege. Works 12 hours days in windowless Amazon cubicle like Winston in 1984. Oh, the productivity. LJL.

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37212994)



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Date: November 12th, 2018 12:05 PM
Author: un ragazzo che scrive nel vuoto (C'est jamais trop grand s’il appartient à Chad!)

*lives in soviet style concrete bunkers passed off as public housing. waits in line 12 hours a day for bread. drowns self in vodka*

(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37215937)



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Date: November 8th, 2018 10:16 PM
Author: community_account



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37194246)



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Date: November 11th, 2018 10:13 PM
Author: community_account



(http://www.autoadmit.com/thread.php?thread_id=4127610&forum_id=2#37212966)