Kansas City Dodged the #HQ2 Bullet

Corporate Welfare |
By Patrick Tuohey | Read Time 1 minute minutes

Richard Florida is an urban studies theorist who promoted the idea that the creative class would drive urban renewal and that smart cities should cater to them. He was wrong, and he admits it. But not before cities like Kansas City, Missouri jumped on board and spent “probably in excess of a billion” dollars trying to create a hipster paradise downtown.

More recently, Florida tweeted a warning to cities jockeying to play host to Amazon’s new headquarters. In responding to a Financial Times story on unpleasant working conditions in Amazon’s UK warehouses, Florida tweeted:

Psst HQ2 cities. You’re gonna subsidize this company to the tune of billions … Maybe think twice …

Florida is right. Amazon demanded lots of taxpayer subsidies from the cities lining up to woo them, including Kansas City. Show-Me Institute researchers have been warning cities about such subsidies for years, but I wonder if Florida offered this same warning to Kansas City, as the area development council paid him to assist on the Amazon bid.

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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