Amazon Backroom Deal Goes Down in House

This link from Talbert Black shows how our House Representatives voted. More importantly, it decimates the argument that the Legislators had to vote for the back-room deal or the State, "would break its promise." It appears that in actuality it is Amazon that broke the promises of the the incentive agreement with South Carolina. It broke its word and is now pulling out of South Carolina. Amazon is leaving because many courageous the House of Representatives stood for the free market and refused to give Amazon a special exemption.

Amazon is taking its toys and going home.

A business can make up whatever business model it wants to make up. However, the Amazon model, like the models for many large corporations, is to wheedle its way into special government favors. Amazon's business model is part of the crony capitalism problem in the United States, and very specially in South Carolina where many of our elected leaders love the secret deal. Thank goodness we had some people who saw this Amazon shakedown for what it was and voted the right way in the House.

Some argue that giving Amazon a special deal would create jobs. That is an assumption that may not be true. The special deal would have given Amazon a competitive advantage over existing South Carolina brick and mortar businesses. The harm to competing business would actually cause a net reduction of jobs. In all probability, the only real beneficiaries in the deal are Amazon, and the cronies that helped make the deal happen, including political cronies.

Read Chapter 7 of Unleashing Capitalism, South Carolina's Tax Incentives: Costly, Inefficient and Distortionary, Peter T. Calcagno and Frank Hefner for a full explanation of the anti-free market idea Amazon supporters are selling.

My representative, Tommy Stringer (R), voted against the free market. I have written him for an explanation for his odd and disturbing RINO-like vote. Maybe he has a good excuse. I will give him the benefit of the doubt until I give him time to explain.