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The Case Against Unchecked Political Power

Tags: policy, wealth

As Rhode Island Representative David Cicilline said, “Their ability to dictate terms, call the shots, upend entire sectors, and inspire fear represent the powers of a private government.” It's more than just a big business - Amazon's wealth and monopoly status enables them to exert an unnatural level of political power. 

Amazon has always had a complicated relationship with the cities closest to its hubs of power. As Seattle's largest employer, Amazon leveraged its position to repeal a proposed 2018 bill meant to increase taxes on large businesses to combat the homelessness crisis in Seattle (Vanity Fair). When Amazon started scouting cities for its second headquarters, politicians began offering hefty tax incentives. Later, when Amazon publicly chose New York City, residents protested against those unfair tax breaks and the inevitable gentrification Amazon would bring. Amazon then decided to relocate the second HQ in Crystal City, Virginia. Crystal City is strategic location grants Amazon ready access to the nation's capitol. That means ready access to lobbying.

As a tech giant, Amazon spends millions ($43.8 million from 2017 - 2019) in federal lobbying. In 2019, those funds went to a whopping 104 lobbying firms who were able to flood politicians with advocates (for comparison, Walmart only hired 54 firms)(Open Secrets). This allows Amazon to exert a disproportionate level of influence on the government at all levels, from local to state to federal. 


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