Thursday, May 1, 2014

Pros/Cons Of Toyota Moving To Dallas

It was a huge win for Texans when it was announced recently that Toyota was moving it's US headquarters from California to Texas. Gov. Rick Perry has been using the final few months of his tenure to visit states around the nation trying to entice both large and small companies to invest dollars and jobs in the state. Times have not been good, from a business standpoint, in California as the state government there struggles with high unemployment, taxes and runaway spending. Gov. Perry has been making his case that businesses will earn more money by moving their operations to Texas, because the state has a large population of well educated professionals who are not predominately inclined to join labor unions. While state government in California encourages employees to join and support unions, the exact opposite is true in Texas. Simply put, Gov. Perry is presenting Texas as a state where not only current profits are better for business, but future growth will be easier as well. What are the pros and cons of Toyota moving it's operations to Texas? All the pros go to the State of Texas. Frankly put, it was a huge coup for such a large and well known company to pull up stakes and leave California. It is also a huge thing on the pros side for Texas when looking toward the future when other large companies are likely to leave heavily taxed states like California for a new home in the Lone Star State. The biggest thing on the cons side is not California losing such a large and profitable company to Texas, but labor unions in general. For decades, union membership has been on the decline – but well contributed politicians in blue states have been slow to make changes that will help their future growth. Another big loser on the cons side of Toyota moving to Texas is President Barack Obama who champions unions at every turn. I believe unions served a noble cause in generations past when millions of Americans were forced to work in horrible conditions for very little pay. Those days are gone, but labor unions are still around today using dues paid in by their members to finance the campaigns of mainly democratic politicians, who refuse to change with the times.