Don’t you ever wonder, when reading an article like this one, why Detroit suffers and Wisconsin (or New York) NEVER seems in the running for such industrial economic development?
The article points out the following:
TOKYO (Reuters) — Toyota Motor Corp. plans to build a sport utility vehicle plant in Mississippi for around ¥100 billion ($830 million), a newspaper reported Tuesday, the latest sign of its pressing need for capacity to keep up with booming demand.
The plant, to come on line in 2009, will build the Highlander model and is set to have an annual production capacity of 150,000 units, the Nikkei business daily paper said.
A separate report from Kyodo news agency put the investment figure at ¥200 billion and output capacity at 200,000 units a year. The plant will create about 2,000 new jobs, Kyodo also said, citing sources familiar with the matter.
…. Other states in the running for Toyota’s new plant had included Tennessee and Arkansas, the Nikkei said. The Wall Street Journal reported last month that three to five locations in the South were under study, including two sites in Tennessee, and others in Arkansas and North Carolina.
The answers are clear as to why the South is rising once again and why the North is falling. Just look at overall tax rates – states such as Michigan, Wisconsin, New York (just run the table in the North) are tax hells, bureaucratic nightmares, and cesspools of socialism. Industrial companies such as Nissan, Toyota and Honda simply cannot afford to make the mistake of locating in such unfriendly confines… Government programming, socialism and the confiscatory high taxation that are part and parcel of these economically failing/falling states should be a wake up call to privatize the education systems (at least copy Utah and offer universal vouchers) which are bankrupting them, lowering taxes and fees across the board, and reform (eliminate) the irrational property tax system.
Yet you can be sure that none of this will happen anytime soon. Instead, Governors such as Doyle and Granholm will more than likely simply whine and cry foul over the more free-market oriented states claiming they allow companies such as Honda, Toyota and Nissan to exploit their workers… by creating jobs for them!
Frankly, if you buy an American made car today you are part of the problem – don’t do it until and unless the big unions and the state bureacracies that support and encourage them are gone from the domestic auto makers labor structure. Buying American now days is tantamout to voting for more collectivism – it is as unpatriotic as you can get! When I see a GM logo or a Ford or Chrysler logo I now think of Marx and Lenin, not Von Mises or Rand…. Think philosophy, not country, in this matter. And it is the philosophy of collectivism and union thuggery verses capitalism and free markets …
My next car may very well be a Toyota or a Nissan (maybe even a Subaru), but it will not be manufactured by Ford, GM, or Chrysler… I am removing my sanction.