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Comment1 Gift Article Share Amazon canceled HQ2 in New York after unions, activists and politicians objected to the deal. But last week, less than a year later, Amazon announced that it would nevertheless expand operations in New York, adding 1,500 jobs and 335,000 square feet of office space. Economic development incentives are benefits given to particular firms, often in the form of cash grants or reduced taxes. The goal is to encourage a firm to make an investment that it might not have made otherwise to create jobs, expand the tax base or achieve some other development goal. Amazon's newly announced expansion does not appear to involve public incentives - meaning that at least some of Amazon's operations don't need to be lured there and that New York can sometimes compete on its own strengths as an international business hub. Of course, this is just one event. And even when Amazon canceled its HQ2 location in New York, the company said it would nevertheless increase its New York presence. By contrast, the newly announced location in Manhattan is to include 1,500 jobs without a firm commitment on the average wages. If we go by these projections, this Amazon investment will apparently be less valuable to New York. But the original announcement may have been overly optimistic, as is often true. Story continues below advertisement

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