Even Businesses Vote With Their Feet

According to this Wall Street Journal article, the steady stream of businesses moving from business-unfriendly states in the Rustbelt and Northeast to business-friendly states in the Southeast has been increasing recently. Said the Journal:

Major companies have been relocating to the Southeast for decades — lured by tax breaks, nonunion work forces, and, increasingly, ports, railroads and highway systems. But now Southern states are attempting to leverage the downturn to promote the region as more attractive during hard times — especially compared to the Rust Belt and other regions where the economy is suffering most.

The preexisting attractiveness of many Southern states, coupled with looming tax increases on individuals and businesses given most states’ inability to budget responsibly, provides an opportunity for to create sustainable industries in new areas. It’s basic economics and it’d be nice if South Carolina would make some necessary changes and join the list of states in articles like this.

2 thoughts on “Even Businesses Vote With Their Feet

  1. I’m curious how many more businesses will take their operations outside the U.S.

    I don’t think that even the staunchest “buy-American” supporters can keep businesses within our borders if they are heavily taxed.

    We live in a Wal-Mart world in the sense we love cheap prices. If I can buy a pair a socks for $1 or an “American” pair for $2, I think I’d reflect in majority with purchasing the former.

    If we want to keep cheap prices, encourage businesses to flourish and provide jobs within our country, it’s critical that heavy taxes are not levied against them making them unprofitable. If we do that, it’s obvious – businesses will vote with their feet. How far they will walk is the next question.

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