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.
That traffic’s about to get worse.
Photographer: Mark Wilson/Getty Images North AmericaAmazon’s expansion of its headquarters to New York City and suburban Washington, made public just a week after Google’s announcement of a planned expansion in Manhattan, shows that the rich are getting richer: That is, only well-developed urban areas are benefiting from the growth of the tech industry.
Right? Not exactly. As well-compensated employees drive up costs in these cities, they will create incentives for workers and companies who can't afford San Francisco rents or Google salaries. “Trickle down economic development” will create winners out of the cities that aren’t landing new tech jobs or headquarters.