Taxpayers Fill Apple's Deep Pockets
Do Apple retail outlets provide a guarantee of economic growth? And if so, should taxpayers be forced to ensure they come to town?
That could soon become a major political debate as rumors swirl that Salt Lake City is offering Apple (NASDAQ: AAPL) the chance to build at least one new store without having to spend a dime on rent for five years. Similarly, Cult of Mac reports that New York City is charging Apple only a fraction of what it charges other retail occupants.
Why would either city offer Apple -- a company that is already very profitable -- such a hot deal? It's true that Apple employs thousands of Americans. But it doesn't manufacture a single item in America, so there aren't any jobs to be saved by using taxpayer dollars to subsidize new Apple Stores.
This does not have anything to do with jobs, however. Instead, the two cities are hoping to use Apple as a driver for economic growth. Apple Stores are (currently) a hot attraction, especially when new iPhones and iPads are released. By drawing customers to a particular area to check out Apple's new technology, Salt Lake City and New York City officials are hoping that people will stick around, spend money elsewhere, and bring more economic success to the community.
If this were a proven strategy, then taxpayers might be able to get on board with the concept. But at this point, it is little more than a concept. It is also still a rumor.
Don't Call it a "Bailout," But…
General Motors (NYSE: GM) received a fair amount of negative press for taking a government bailout even though the company was supposed to pay the money back. However, the same cannot be said for Apple and the aforementioned deal.
Thus, if either city truly has made Apple a stellar deal to open new outlets, the company gets to walk away with all the benefits and all the profits just for coming into town.
If taxpayers knew about this, how do you think they would react? Do you think they would simply be happy just to have an Apple Store in their neighborhood? Or would the idea of tax dollar-funded Apple Stores anger taxpayers when that money could be used for schools, police, health care, or something else entirely?
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