The Nation's John
Nichols wrote last week that Wisconsin Governor Scott Walker has adopted a
"Southern strategy" of promoting union-busting policies and
economic-development strategies that raid Northern states and move jobs to
states where organized labor is restrained and wages are kept low.
One can understand using a
politician's economic development policies to persuade voters (Walker faces a
recall election tomorrow) to cast their ballot in a particular manner, but
using anti-southern bigotry and misinformation demonstrates ignorance of how
economic development actually works.
Never
mind that “northern” residents and businesses have been flocking to the south
for more than three decades – and not just because of the warmer climate.
Businesses have found that operating costs are lower - including those
associated with energy, taxes, labor and real estate. Would Nichols have
residents of southern states not try to improve their economic condition by
adopting policies that make their locations more competitive
And, while the south has enjoyed cost advantages the Wall Street Journal
reported on May 20th that the Midwest is closing the business cost gap.
Southern
states aren’t the only ones guilty of “raiding” either. Indiana and other
Midwest states have conducted well orchestrated marketing campaigns in Illinois
when that state raised its corporate income taxes. Nevada, New Mexico and other
western states have taken advantage of California’s fiscal and tax problems to
attract businesses to their state. It’s an economic development strategy
used by nearly every state, not just southern ones.
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