In 2020, Amazon built a shelter for women and families experiencing houselessness on its campus in Seattle, Washington. The shelter was operated in partnership with a nonprofit organization known asand was designed to address what had become an urgent problem for Seattle and many other wealthy American cities, where communities were being displaced by a lack of affordable housing.
BRIAN KENNY: Deb, let me turn to you for a moment and ask, you and Paul wrote this case together. I’m wondering why did you decide to write it? Why was it important to you to pick up this topic? In large cities, the cost of housing has really exploded as companies like Amazon, and I’m not blaming Amazon, but one consequence of the tech boom and the boom in cities is that the price of housing in large cities has really escalated dramatically. And that’s really priced out a lot of low-income people.
DEBORA SPAR: Well, ironically, one of my friends was the deputy mayor and was deeply involved in this. And even while she was going through it, I mean it is this double-edged sword because if you’re a mayor, if you’re a community leader, you kind of have to want this investment because it brings… I forget how many tens of thousands of jobs, it’s going to drive up property values and it’s going to bring more espresso bars to a community.
DEBORA SPAR: Well, I think my sense, and Paul may have a different one, but I think it’s very human. People rarely see themselves as causing problems, particularly when there are problems that are multifactorial. Nobody caused, no single entity caused the problem of homelessness. It was a failure or complications on so many levels.
BRIAN KENNY: So, what was Amazon’s way to fix this? We haven’t talked about Mary’s Place. That’s obviously a central part of the story as well. What is Mary’s Place and how has Amazon engaged with them? BRIAN KENNY: So, that’s an interesting approach though. Why would they choose to build it right in their midst?
DEBORA SPAR: Yeah, so I mean it’s a fairly classic case of what happens in civic arguments. So very few companies ever want to pay more taxes. It’s just not part of the rule book. And governments tend to want to tax corporations because they need and want the revenue.
BRIAN KENNY: Right, right. We’ve talked a lot about Amazon. We haven’t talked specifically about Jeff Bezos, but the case does mention Jeff Bezos and the way that he started to engage in this. Paul, can you describe that a little bit? DEBORA SPAR: Yeah. If I dare to be optimistic, I think the US is moving a little bit more towards a model of, perhaps out of fear, that companies, including Silicon Valley companies, that 20 years ago just wanted government to go away are now saying, “No, we actually need a working government.” Forget whether it’s Republican or democratic, we need a functioning government. We need government to take care of homeless people.