Take Your Jobs to New Jersey
Jan. 25th, 2011 06:31 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
billroperIllinois has been taking a lot of fairly justifiable guff about the state legislature's recent decision to raise the individual and corporate income tax rates. Wisconsin and Indiana have been running ads encouraging Illinois businesses to pull up stakes and go.
I was, however, surprised to hear a radio commercial with New Jersey Governor Chris Christie encouraging Illinois businesses to move to his state.
When New Jersey is touting a more favorable business climate than the one in your state, then you know your state is in trouble.
*sigh*
I was, however, surprised to hear a radio commercial with New Jersey Governor Chris Christie encouraging Illinois businesses to move to his state.
When New Jersey is touting a more favorable business climate than the one in your state, then you know your state is in trouble.
*sigh*
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no subject
Date: 2011-01-26 01:54 am (UTC)no subject
Date: 2011-01-26 02:03 am (UTC)no subject
Date: 2011-01-26 02:14 pm (UTC)The conventional wisdom is that small-business is the backbone of the economy.
Most small businesses are located where they are, not because the owner went looking for where to create a business, but because that's where the owner was.
Most people really don't ever move far from where they were born/raised.
Even if they want to move, say due to taxes, geographic factors are often the overriding issue (geographic here means who else is located in the area).
And, of course, moving a business is a major expense.
I went digging a while back to see if I find any actual data on business movement. I failed. I found a magazine industry devoted to the idea, but no data.
If nothing else, Illinois is giving us a marvelous chance to try the experiment. What will really happen? As always, I expect the truth to be in the middle. A (relative) few businesses will move, but there will be no major run or collapse. I further predict there will be a lot of grumbling.
no subject
Date: 2011-01-26 03:07 pm (UTC)Then if the business is ever sold, the new owners may very well close the original offices. It's a setup for continuing hurt over the course of years.
no subject
Date: 2011-01-26 04:25 pm (UTC)Economics could be an experimental science, but nobody wants to be the subject of the experiments.
no subject
Date: 2011-01-26 04:22 pm (UTC)no subject
Date: 2011-01-27 03:23 am (UTC)