Toyota North America HQ Leaving CA (commission, organization, housing, property)

[Forest_Hills_Daddy]

I have not lived in CA in almost a decade so I have no skin in this. Here are just my thoughts as an observer -

The fact that TX offered $40M in incentives ($10K/employee) tells you something about this company and industry. If they can ask for incentives now, they will ask for incentives again or leave. Their "business model" is to chase the lowest cost to protect their shrinking profit margins. Yes, they offer middle class jobs but they are also driving wages down.

This is not the kind of business you would want to keep in CA at all cost.

[ringwise]

Originally Posted by ExeterMedia

California Cheerleaders: "We don't care about blue collar jobs moving to cheap low class states like Texas."

Where workers stand in knee deep toxic waste, and the buildings fall down on their heads, because Texas has NO regulations.

The folks here are stoked - not just those lowly jobs to be gained. Real estate, restaurants, and everything that goes along with gainfully employed folks.

[yamota]

people moving into the LA area recently better have something to make up for the lost revenue

[ExeterMedia]

It's hard to keep companies around when you attempt to tax all of their profits away from them to support entitlement programs. It's even harder to keep companies around when they have to offer factory workers $80,000 salaries just because the cost of living is so incredibly high because eco-warrior NIMBYs don't want any high density housing to block their view of the duck pond across the street, to ruin the "character" of their neighborhood, or well... just because they don't want to live next to poor people.

I mean, yeah, entitlements like free health care, state subsidized education, debit cards, and drivers licenses to illegal aliens may be a noble idea, but anything is easy to give away when you're funding it with other people's money.

[ExeterMedia]

Originally Posted by ringwise

Where workers stand in knee deep toxic waste, and the buildings fall down on their heads, because Texas has NO regulations.

The folks here are stoked - not just those lowly jobs to be gained. Real estate, restaurants, and everything that goes along with gainfully employed folks.

It's sad really. Most of the blow hards who dismiss Forbes 500 companies pulling up stakes don't actually understand that having a gainfully employed middle class actually has economics benefits that everyone eventually feels.

[ExeterMedia]

Originally Posted by Forest_Hills_Daddy

I have not lived in CA in almost a decade so I have no skin in this. Here are just my thoughts as an observer -

The fact that TX offered $40M in incentives ($10K/employee) tells you something about this company and industry. If they can ask for incentives now, they will ask for incentives again or leave. Their "business model" is to chase the lowest cost to protect their shrinking profit margins. Yes, they offer middle class jobs but they are also driving wages down.

This is not the kind of business you would want to keep in CA at all cost.

So why did Intel relocate $8 billion dollars worth of infrastructure projects to Oregon and Arizona? In fact, Intel said they would NEVER build another plant in California.

The simple facts are California is not a business friendly state. Companies pay more to do business here because of taxes, the overall regulatory burden, and the overall high cost of doing business; attracting talent, energy cost, etc.

If I can relocate my business to another state, and instantly increase my margins by 20-30%, it becomes a no-brainer whether "incentives" are in place or not.

[jm1982]

Originally Posted by pwright1

Well at least the employees that do transfer can actually purchase a home. Plano and north Dallas have all the good stuff like good schools, nice neighborhoods and tons of amenities like excellent shopping, dining and entertainment. Congratulations to Dallas again.

It sounds like a nice place to live
Plano, Texas - Wikipedia, the free encyclopedia

Looks like they won those " best places to live" designations for many years .
Texas does seem like the New California

People used to move to CA because of the opportunity
Jobs were here and there were growing communities where housing was affordable

This sounds like what is happening in Texas , you look at the growth population wise and economy wise .

Meanwhile people that want to move here mostly seem to be young people from out of state with a few bucks in their pocket , few if any skills , wanting to live some mythical california dream .

We don't need more people living in their cars and on welfare

[Tulemutt]

Originally Posted by ExeterMedia

It's hard to keep companies around when you attempt to tax all of their profits away from them to support entitlement programs. It's even harder to keep companies around when they have to offer factory workers $80,000 salaries just because the cost of living is so incredibly high because eco-warrior NIMBYs don't want any high density housing to block their view of the duck pond across the street, to ruin the "character" of their neighborhood, or well... just because they don't want to live next to poor people.

I mean, yeah, entitlements like free health care, state subsidized education, debit cards, and drivers licenses to illegal aliens may be a noble idea, but anything is easy to give away when you're funding it with other people's money.

Ah. So we may presume then, you nominate your Dana Point neighborhood to be re-zoned for a high-density, high-rise, middle-income targeted housing development. Perhaps clear the existing housing across the street from your place for a building site.

[Tulemutt]

Originally Posted by ExeterMedia

If I can relocate my business to another state, and instantly increase my margins by 20-30%, it becomes a no-brainer whether "incentives" are in place or not.

Good to hear. When will you join the exodus? Looking forward to thinning things out around here!

[Tulemutt]

Originally Posted by GatsbyGatz

Here is the comment I made on this topic in the LA thread:

This is an enormous loss to the SoCal region. Seems like for every company that moves in, another major anchor moves out. It's like using a bucket to scoop out water from a leaking boat at this rate. Seattle, too, is in a similar situation. Amazon is a goldrush for Seattle at the moment, but Boeing is slowly but surely leaving, taking with it thousands of good-paying jobs. The West Coast is popular for living in, but unpopular for companies, it seems.

Er no. Your example analysis is grossly flawed. But first note that when a statistic isn't dramatic enough, we have the opportunity to use REALLY BIG NUMBERS to make things seem REALLY IMPRESSIVE! Regardless of how much $265 million would be a nifty Lotto jackpot to put into your bank account, um, the fact remains: 5,300 jobs represents 1/10 of 1% of area employment.

Now back to the rest of the flaw: not all those local breadwinners are going to up and leave or even go on the dole for long if at all. California is adding jobs at one of the highest rates in the nation. Many of those 5,300 will remain in new area employment. And many of the 5,300 positions at the new location will be filled by folks from a variety of places around the nation willing to move to a hellhole state.

And finally, and most importantly -- wouldn't it BE actually really nice if LOTS of people DID in fact leave the state!!