Governments Should Compete for Residents, Not Businesses
Amazon’s decision to pause construction of its second headquarters in Northern Virginia could herald a new era in regional development.
Taking a breather.
Photographer: Pete Kiehart/Bloomberg
Amazon.com Inc.’s pause of its plans to expand its second headquarters in Northern Virginia reflects some deep underlying trends — not just for metropolitan Washington, where I live, but for regional development more generally.
First, with the end of the US Federal Reserve’s zero interest rate policy, many developments are being canceled or postponed. Long-term projects are less profitable than they used to be, and capital is harder to come by. As the major technology companies lose market value, their urban and suburban refurbishment plans become less of a priority.