Who's Our Competition?

Gary Pearce posted on July 25, 2012 12:18

Pat McCrory and Walter Dalton are debating whether North Carolina lost its competitive edge. The question is: Who are we competing with? And is competition just about taxes?

Rob Christensen’s N&O story Sunday asked whether we’re still a “Dixie Dynamo.” But some people who work in economic development think that’s too narrow. We’re not only competing with Southern states, we’re competing with Boston, Austin and Silicon Valley. And China, Korea and Europe.

The Southern focus leads to a tax focus. The N&O had a table comparing our taxes with the usual suspects: South Carolina, Georgia, Tennessee and Virginia. Lew Ebert at the N.C. Chamber of Commerce focuses solely on the cost side: taxes, tort reform, workers compensation and regulations.

But, if taxes are everything, why do companies go to Massachusetts and California? Not exactly low-tax havens there.

This is the challenge and opportunity for Walter Dalton and the Democrats: a lot of bright, creative, entrepreneurial come to North Carolina – or go somewhere else – not because of taxes, but because of lifestyle preferences, including the quality of schools and universities, the quality of health care, recreation, social life and livability.

The Democrats have to link a strong economy to all these factors. If it’s all about taxes, they lose. If they can paint a bigger picture, they can win.

Posted in: General, North Carolina - Democrats , North Carolina - Republicans , Issues

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# Chris

Wednesday, July 25, 2012 2:38 PM

I can't speak to Massachusetts, but I can to California. First of all, outside of Silicon Valley, California is having a difficult time attracting new businesses, largely because of taxes and an anti-business climate. Silicon Valley is a bright spot, but only because it has enormous network effects. Most companies in Silicon Valley would be happier if the Valley were located someplace else (including North Carolina), but it's not, so they stay.

And, I'll note that public schools in California are in terrible shape -- my nephew's elementary school PTA raises about $250K annually, which they use to fund teaching positions that the state ought to be paying for.

# Carbine

Friday, July 27, 2012 1:44 PM

No one ever said the "taxes are everything." They are however extremely important, because they come straight off a company's bottom line, and provide only a dubious (and inconsistent) return in terms of benefits to the company. Massachusetts is a high-tax state that provides very good services, and for some types of companies that adds up to a profit-friendly environment. California, on the other hand, is a hot sour mess that is already beginning to circle the bowl. It's a living example of the consequences of leftist policies. I believe that at this rate (and barring a sea-change in political direction) California will become a de facto third world country in our life times.

Who's Our Competition?

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