Posts Tagged ‘Brexit’

What A Concept!

February 24, 2019

In the past year plus, Amazon had courted a vast number of American locations for establishment of its HQ2. When the dust had settled, it announced two HQ2’s – one in the greater DC area, and one in NYC, the borough of Queens to be specific. This came as more than a double whammy to those urban centers who earnestly offered to give all (and more) to have the mega giant’s home (away from home) office in their neighborhood. Popular discontent with the prospect of thousands of more employees, commuters, urban upheaval and displacement due to real estate values rising, gentrification, etc. while infrastructure costs, schools, and medical care, emergency services would receive no commercial Amazon support, created a popular uprising. Amazon withdrew its 2 HQ2 vision (and had to settle for just one). Alexandria Ocasio-Cortez and her followers were credited (or blamed) for the erasure of the dream (or scheme). Many critiqued the outcome on the usual suspects attributed to “growth” in Licking County by Newark’s GOP mayor, the GOP county commissioners and (the GOP) Grow Licking County – “Jobs!” would bring wealth into the hood and revitalize the neglected economy. In Queens, it isn’t exactly vacant farm fields that would get transformed but the populace recognized early on that their rents would go up, along with their taxes and commute times (even for groceries). Real estate values going up is great for those who own it to make a financial killing (investment), terrible for those who depend on it to stay alive (for their livelihood or as a place to live). Analysis can only find that the folks in Queens could discern the difference. On the other side of the Atlantic an analogous situation exists with the slow motion train wreck called “Brexit.” London has been the traditional financial equivalent of Wall Street (indeed, many Newark consumers have their loan and credit card interest rates tied to the LIBOR rate which finds its home in, you guessed it, London). The various global banks and commercial entities which had their HQ1 (or 2) in London are now exiting. “Which City Is Winning the Race to Be Europe’s Next Finance Hub? None” by Sophia Akram appeared in Ozy (2-24-19). Seems no single European city will take in the financial refugees. Cities like Frankfurt, Paris, Dublin, Madrid, Milan, Amsterdam, etc. have suitors and potential mates but each only a few. No city wants them all. The usual suspects (covered by the AOC confrontation in Queens) are listed: “These growing pains — overpopulated cities, purpose-built towns and spillover into neighboring areas as well as soaring rents and property prices — aren’t surprising, says O’Malley [Eoin O’Malley, associate professor of politics at Dublin City University]. And how governments deal with them could determine whether these cities can truly cash in on the opportunity presented by Brexit, he adds. “Whenever you’re bringing in relatively high-paid jobs, it’s probably displacing the people living in those areas to the outskirts of the city,” says O’Malley. “There’s a lot of pressure on the government to build more social housing, and that’s probably the big issue in Irish politics at the moment.”” Gasp! Government build more housing? What a concept! Try selling THAT to Tim Bubb, Nate Strum or Jeff Hall. “And it will take time for the cities bidding to replace London to be able to fully absorb the incoming demand from foreign firms and professionals. O’Malley says Dublin, for instance, currently lacks adequate affordable housing, transport infrastructure and non-Catholic schooling.” “[Paris] is preparing for what O’Malley warned would become the gentrification that pushes residents from the city to its suburbs. The city, meanwhile, is expanding the Paris metro system to cover a “Greater Paris” metropolitan area.” Double gasp! Metro system expansion? What a concept! Grow Licking County prefers good ole self reliance, thank you (“Nate Strum, economic director of Grow Licking County and the Licking County Chamber of Commerce, said a new effort will focus on unemployed in neighboring counties with higher unemployment.” Mallett, Advocate: Employers thinking outside box on job recruitment, retention, training 2-22-19). The good folks in Queens heeded the USPS motto; “If it looks too good to be true, it probably isn’t true.” But the real concept camouflaged in all this (but staring us right in the face) is the dispersion of wealth. Since Occupy back in 2010/11, the public consciousness has grown with regards to wealth distribution and income inequality in the U S and abroad. Most are cognizant and articulate with the 1%, 99%  concept. Locating all the wealth within one sector seems to have been actually undermined by the likes of AOC and the Queens resistance to Amazon’s HQ2. And Brexit, no matter how it turns out, has likewise created a rupture in the concentration of wealth within a limited geographic location. It is a crack, indeed a relatively minor one, but Analysis does find that it makes factual the redistribution and dispersion of wealth, affecting more than just an exceptional few. Triple gasp! Wealth redistribution? What a concept!