Boeing, South Carolina, and the Race to the Bottom
Boeing's announcement that it will locate its 787 final-assembly plant in South Carolina has led to predictable condemnation of Democratic Gov. Christine Gregoire. It seems she just didn't do enough to kowtow to the aerospace giant. Republicans, who portray themselves as stout protectors of the public purse when it comes to, say, funding basic health care, cast those concerns to the wind when it's time to bribe big corporations. Republican State Rep. Mike Hope of Lake Stevens angrily observes that "the governor of South Carolina wasted no time in calling a special legislative session to adopt a package of upfront grants [$170 million worth] and tax breaks [for Boeing]. I have to ask our governor... 'Why aren't we in session to demonstrate an equally strong commitment to keeping the aerospace industry...?'"
Buh-Bye
Of course the problem isn't a lack of "commitment" to the aerospace industry in a region where generations of workers have devoted their lives to making Boeing planes. The problem is that people in Washington just don't come as cheap. We have this bad habit of paying people a decent wage, and providing good unemployment pay and benefits for people who are injured on the job--all things that apparently must change if we're to be competitive.
But then, if you consult the advocacy groups trying to insure the "competitiveness" of South Carolina, they say the same thing. "South Carolina's workers' compensation costs are the highest in the Southeast for small business" frets the South Carolina Civil Justice Coalition, a group that works to improve the business climate in Boeing's new home. They won't be satisfied until South Carolina's "climate" has been made as cheap as Georgia's, Tennessee's, and Virginia's.
And on down it spirals. It's not a winnable game, not if we want to keep any allegiance to our own values. In a few years, Boeing will be playing S.C. off Mississippi.
2 comment(s)
MrObvious says:
can you say "sonics"?
Posted On: Thursday, Oct. 29 2009 @ 10:02AM
DigitalBob says:
It's just a wild guess but maybe a 60 day strike costing $100 million a day in the middle of trying to roll out a new airplane had something to do with it. The openly hostile polock union spokesthug and his lovely diatribe tells you all you need to know. So congratulations South Carolina. If it weren't for your non-union IT industry, you would be on your way to being the next Detroit.
Posted On: Thursday, Oct. 29 2009 @ 11:07AM