Posted on 06/13/2009 7:23:19 AM PDT by TigerLikesRooster
Southern States Poach Businesses Amid Downturn
By ANSLEY HAMAN
When NCR Corp. started looking late last summer to move from its hometown of Dayton, Ohio, economic development agencies in the South pulled out all the stops in a bid to lure the 125-year-old company best known as a cash-register manufacturer.
Georgia quickly offered more than $100 million in tax and training incentives. State officials connected NCR with six Georgia research universities willing to license new technologies and train workers.
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Bloomberg News
NCR and other companies are moving operations to the South. A Volkswagen plant is seen under construction in Chattanooga, Tenn., last month. In addition to traditional incentives like tax abatements and fee waivers, local economic development leaders in the suburban Atlanta county where NCR's headquarters would be located negotiated discounts for the company with rental-car companies, airlines and landscapers. The city of Columbus, Ga., 100 miles from Atlanta, applied for $5.5 million in stimulus money to help pay for a new NCR factory. After deciding to build a customer-services center near Atlanta last year, the company last week said it would relocate its 1,250-employee headquarters to the area and open an ATM factory in Columbus.
(Excerpt) Read more at online.wsj.com ...
— happy ending of a parable —
Let us hope..
FrankR makes a good point up there.. Rats flee a sinking ship and bring their undesirable traits and prerogatives with them. So the stage is set for some future tussle.
The cool part is we get to watch the remaining leftists drain these haughty, formerly prosperous, places of every last cent till they collapse in a heap.
Oldexpat's comment on regulation as a means to control emigration is a concern also. The south and the middle south is heavily reliant on coal power. My understanding is that Obama intended to punish coal power plants, and by extension the end users, but has been undermined.. In part by his own party, who presumably see a train wreck coming.
This has already happened in 90's. Californians fleeing to neighboring states with cheaper tax(LOL) and lower living expense.
They wasted no time to push for things which made California such a pit. You have to shoot them at the border.:-)
Want to see the Train Wreck Graphically?
take a look at this map:
Look at this interactive map:
Job Loss/Gain 2007-2009 by county-
http://www.slate.com/id/2216238/
This is where the riots in the streets will begin 6-9 months from now.
We’re going to have to divide into two countries, or the blue states will just tax prosperity out of the red states, to pay for the parasites left behind.
“Dayton whined about this move by NCR but they’ve never been known as particularly business-friendly.”
Common sense should dictate that when a city like Dayton is threatened with the loss of a company such as NCR, which not only provides a lot of jobs but is strongly identified with the city, they should step up to the plate with a matching set of incentives to keep the company6.
Yep!
“Poaching businesses? More like attracting them with a climate that is not business hostile!”
Absolutely! Ohio has been anti-business for the last 25 years. No surprise that NCR had finally had enough.
Could be the South does WIN the war... about a 150 years later.
It’s interesting how you find different “kinds” of Dem voters in various parts of the country, but they’re equally ignorant:
Midwest/Rust Belt: Socially conservative, Yoon-Yun brainwashed types that think Democrats have honey on their asses and Republicans are evil incarnate
Eastern States: Combination of “generational” Democrats (mostly relatively conservative Catholics that vote Dem because their ‘daddy and granddaddy voted Dem’), black race warriors, and some union types and Limousine Liberals who think Republicans are evil incarnate
California/PNW: Combo of Enviroweenie yuppies and Hollywood limousine libs who think Republicans are evil incarnate
And Massholes moving to New Hampshire, and Marylanders moving to Northern Virginia...
They’re too stupid to realize it’s their own voting patterns that turned their old home into a sh*thole and will do the same to the place they move to.
This has been happening long before the ‘downturn’. The Northeast is gonna need a bailout what with all the capitalist folk seeking friendlier tax/non-union environs.
The Cincy riot of April 2001 was the event that made me a dedicated FReeper. The lack of national reporting on this event was amazing, seeing what was showing up here. The entire thing was quickly forgotten due to events of 9/11, by most, but it very much showed part of the reason businesses often won’t locate in central cities.
They’ve been warned!
The incentives offset the capital expenses of the move. After allowing recovery for those (usually over about 10 years), the company pays taxes at the usual local rates (which are still lower than up north), for a win-win situation.
Further, new businesses do new business with local businesses, plus attract new residents, who contribute new income to the community and generate new sales taxes, new property taxes, etc.
Even more win-win.
Obviously, this simple equation is not understood in blue cities and blue states -- who respond by bitching about the South "poaching" businesses, rather than adopting productive policies.
Sure, not as much as without the breaks, or not as soon, depending on the nature of the breaks. Although some or later is better than none and never, which is what they'd get if the businesses did not locate in their area.
But all those workers will be paying taxes, won't they?
Maybe the reason it didn't seem to work out that way nearly so much in Texas is that Texas weather is not so hospitable. And, neither is it's welfare system. IF they come to Texas, they need to be prepared to fry, to freeze, and most importantly, to work.
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