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Rubbish. Corporate profits are at a high, yet wages have grown less or even stagnated over the last 2 decades, and certainly lagged below growth in productivity.
A race to the bottom isn't a good thing for the country socially, economically or politically.
And states like California are leading the race to the bottom. High taxes (on both individuals and business), a declining public educational system, an increasing percentage of non-productive entitlement-supported population, large and festering crime problems in many of its metropolitan areas, a high overall cost of living, huge fiscal irresponsibility in government, over-the-top Nanny-state regulations--the list could go on.
The fact is that California is a very ill state--maybe terminally ill. It's living on its past inertia now, but that won't last. My only hope is that when it crashes, it doesn't take the whole country down with it, which it could. Toyota is smart for moving out.
As for corporate profits being high these days, some are. But small and medium businesses are really struggling--and they are the ones that employ most Americans and they are the ones to which a poisonous business climate like California's are most deadly.
And states like California are leading the race to the bottom. High taxes (on both individuals and business), a declining public educational system, an increasing percentage of non-productive entitlement-supported population, large and festering crime problems in many of its metropolitan areas, a high overall cost of living, huge fiscal irresponsibility in government, over-the-top Nanny-state regulations--the list could go on.
The fact is that California is a very ill state--maybe terminally ill. It's living on its past inertia now, but that won't last. My only hope is that when it crashes, it doesn't take the whole country down with it, which it could. Toyota is smart for moving out.
As for corporate profits being high these days, some are. But small and medium businesses are really struggling--and they are the ones that employ most Americans and they are the ones to which a poisonous business climate like California's are most deadly.
This is a false message spread by some wishing to gain an agenda through the weak minded who will believe it. California has a balanced budget and pays more federal tax dollars than many other states including Texas. California's population since 2010 has grown by 3% while Texas has grown by 5%. Sounds like Texas is doing great huh? Well, last time I checked, 3% of 40 million is greater than 5% of 25 million. When Texas can show significant improvement greater than California other than one of the lowest wage states I'll concede the misplaced ideals you espouse actually work. Until this happens it's just another state in the South, only it pays its way unlike others. Barely!
Heck, I'd make the move myself if I was a Toyota exec making the decisions and I'm a Californian.
Good to know that California governance had NOTHING to do with this move. It is all about hubs, cheap land and low wages. I am sure you guys will double down on what you are doing there. Not to worry.
And states like California are leading the race to the bottom. High taxes (on both individuals and business), a declining public educational system, an increasing percentage of non-productive entitlement-supported population, large and festering crime problems in many of its metropolitan areas, a high overall cost of living, huge fiscal irresponsibility in government, over-the-top Nanny-state regulations--the list could go on.
The fact is that California is a very ill state--maybe terminally ill. It's living on its past inertia now, but that won't last. My only hope is that when it crashes, it doesn't take the whole country down with it, which it could. Toyota is smart for moving out.
As for corporate profits being high these days, some are. But small and medium businesses are really struggling--and they are the ones that employ most Americans and they are the ones to which a poisonous business climate like California's are most deadly.
This just another tired representation of the sky-is-falling meme in California. You're entitled to your opinion but it doesn't jibe with the reality.
CA's fiscal situation has actually improved, and contrary to popular belief, we were able to get a budget because the Republicans lost enough seats so they couldn't gridlock the process anymore. Jerry Brown actually is a bit of a frugal guy in terms of budgets. We are getting back our educational budgets back too where they are supposed to be. Contrast that with Rick Perry cutting the educational budget in Texas.
Did you even think that the reason why the SF Bay Area has such high housing prices is because there's a lot of people moving there and pushing up demand? Hardly a dying economy. Also, there are plenty of small and medium sized businesses starting up here everyday and they are thriving here.
California, in particular the tech economy here, is a different type of economy and it's just different than Texas.
Another thought. When these companies leave and move to low wage states, these states give them incredible tax incentives, pay for all infrastructure required, etc. Then the state/Feds pick up the costs for addition schools, Police, Fire Dept, etc because of limited to no taxes by the Corporations. Who pays for this? House taxes, sales tax, tolls every where in Texas, etc.
Also, after the Corporations leave an area, who pays for all those unemployed people? Yep, we all pay. This is a cycle.
Texas gave Toyota cash as incentive.
Toyota will spend that money - probably on their new building. Feds are not involved in any way.
Toyota will pay property taxes in Plano - which is how schools and infrastructure is funded. The 4000 people also will pay taxes - property and sales taxes.
As for when a corporation leaves and area - I can't predict what happens. Some people will find a job and the taxpayer is not hit for them. Others will draw on services. The answer should be to keep your employers. You can't force them to stay.
Texas isn't a low wage state. It is a low cost state. Two different things. Wages in Texas can be lower because of lower costs.
Because states like KY are willing to fork out lots of tax incentives and sweetners to have a plant, and they had a greenfield site available for a good price. California's land costs are very high - no way around it. It works well for high tech offices and software, not so well for large scale manufacturing. You also have to remember that by then Toyota was comfortable enough to move into the heartland - and they weren't the first Japanese transplant to set up shop in the USA - Honda was (Toyota is traditionally a much more conservative company than Honda).
This case is different. It's about a administrative operations move, rather than a factory move, and with that, it's all about logistics, proximity and geography. There's a reason why air hubs often tend to be in the middle of the country. Now of course, SFO and LAX are air hubs for overseas flights to/from Asia. Again, Toyota USA is now a more, North American-centric operation so it follows to have their "hub" or HQ in the middle of the country.
My point is that there's more to the move than just what Governor Perry likes to talk about and the usual meme about taxes and regulations. It's less of a factor than if you're talking about setting up a manufacturing facility where you have to deal with wastes, environmental factors and materials handling. Heck, I'd make the move myself if I was a Toyota exec making the decisions and I'm a Californian.
You're right - logistics surely were a big factor. When Toyota stopped manufacturing vehicles in CA it made less sense to base HQ there - almost the furthest distance from their US plants.
Perry's statements are not better or worse than any other politician. So no one should expect what comes out of his mouth to be the complete story.
Soon people will be talking about Tesla's new battery plant. That isn't decided yet - though we know it won't be California.
This just another tired representation of the sky-is-falling meme in California. You're entitled to your opinion but it doesn't jibe with the reality.
CA's fiscal situation has actually improved, and contrary to popular belief, we were able to get a budget because the Republicans lost enough seats so they couldn't gridlock the process anymore. Jerry Brown actually is a bit of a frugal guy in terms of budgets. We are getting back our educational budgets back too where they are supposed to be. Contrast that with Rick Perry cutting the educational budget in Texas.
Did you even think that the reason why the SF Bay Area has such high housing prices is because there's a lot of people moving there and pushing up demand? Hardly a dying economy. Also, there are plenty of small and medium sized businesses starting up here everyday and they are thriving here.
California, in particular the tech economy here, is a different type of economy and it's just different than Texas.
The Bay Area housing prices are high because of high demand and very low supply. I don't think it is new residents per se driving the demand. There is lots of money from the tech crowd - who can afford the $500/sq. ft or more for reasonable housing. And there is growing frustration in SF because of costs are pushing even more people out of the city (the Google buses etc).
Toyota will spend that money - probably on their new building. Feds are not involved in any way.
Toyota will pay property taxes in Plano - which is how schools and infrastructure is funded. The 4000 people also will pay taxes - property and sales taxes.
As for when a corporation leaves and area - I can't predict what happens. Some people will find a job and the taxpayer is not hit for them. Others will draw on services. The answer should be to keep your employers. You can't force them to stay.
Texas isn't a low wage state. It is a low cost state. Two different things. Wages in Texas can be lower because of lower costs.
The $40Million Tx gave Toyota will be spent in relocations, training for new employees hired when some existing ones do not move and in office moves. I am not sure if they will build or lease in Legacy as this campus is part of a larger joint venture developing 250 acres, which is much larger than needed for office space for 4000 jobs. Any improvements in Toyota's bottom line from the move will have to come in lower operating cost, downsizing, better processes which are more effective and more productive. I agree the Feds don't help all.....
The $40Million Tx gave Toyota will be spent in relocations, training for new employees hired when some existing ones do not move and in office moves. I am not sure if they will build or lease in Legacy as this campus is part of a larger joint venture developing 250 acres, which is much larger than needed for office space for 4000 jobs. Any improvements in Toyota's bottom line from the move will have to come in lower operating cost, downsizing, better processes which are more effective and more productive. I agree the Feds don't help all.....
The articles I saw said they would break ground on a new building. Don't know the details. If they need 50 sq. ft. per employee, that means 200,000 sq. ft.
Toyota has $40M from Texas to spend - presumably as they see fit. $40M is not enough for a 200K sq. ft. building. A high school for 2500 students costs $80M or more now. I am willing to bet that Toyota's building will cost far more than that.
The articles I saw said they would break ground on a new building. Don't know the details. If they need 50 sq. ft. per employee, that means 200,000 sq. ft.
Toyota has $40M from Texas to spend - presumably as they see fit. $40M is not enough for a 200K sq. ft. building. A high school for 2500 students costs $80M or more now. I am willing to bet that Toyota's building will cost far more than that.
More like 150 sf per person minimum for a HQ. So triple your building size and I bet it ends up more like 1 Million SF with conference areas, gym amenities, training space, etc
Relocation package they offer sounds rich. If they pick up selling cost for the old home and closing cost o the new one and pay moving and for a family visit and interim housing etc. It should run around $50-100k per employee relocated. Say half go that's a cost of $10-20Million. Office moves add up as will hiring and training new employees replacing those do not move. Add in down time and the cost will eat up most of the incentive Texas paid. Do they own the office space they occupy in Ca?
Between the cost of the move and business disruption they won bank much of the incentive package as I said above.
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