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Thread: yet more 'gov't subsidized' jobs created ...

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    Default yet more 'gov't subsidized' jobs created ...

    so far the state of Mississippi hasn't posted the total cost to its taxpayers of the direct subsidies / tax abatements / infrastructure improvements it agreed to provide in order to entice Totota to create 2,000 'new' jobs in Blue Springs. You can bet that it amounts to hundreds of millions of dollars worth.

    I also use the term 'new' because in actuality these US auto sector jobs are NOT new ... every 'new' job at $18 an hour in Blue Springs comes at the expense of an 'existing' $36+ per hour job in Michigan. with the obvious effects on federal income tax revenue.


    2007-02-27 22:13 ET - News Release

    Tokyo, Japan -- (JCN Newswire) --

    Tokyo, Feb 28, 2007 - (JCN Newswire) - Toyota Motor Corporation announced today that, as part of its continuing localization efforts in North America, it has decided to build a new vehicle production plant in Blue Springs, Mississippi, U.S.A.

    The new plant will be Toyota's eighth vehicle production plant in North America and will have an annual production capacity of 150,000 vehicles, producing the Highlander SUV, starting in around 2010. Plans call for an investment of 1.3 billion U.S. dollars and creation of approximately 2,000 new jobs.

    This development is expected to bring Toyota's North American annual production capacity to 2.17 million vehicles, including the start of OEM production of the Camry sedan at Fuji Heavy Industries Ltd.'s Subaru of Indiana Automotive, Inc. (100,000 units annually) and expanded production capacity for the Tacoma pickup truck at Toyota Motor Manufacturing de Baja California in Mexico (increase of 20,000 units), both in 2007, and the opening of the Woodstock plant of Toyota Motor Manufacturing, Canada, Inc. for the RAV4 SUV in 2008 (150,000 units annually).

    TMC President Katsuaki Watanabe had this to say on the occasion of today's announcement: "Our decision to establish a new plant in the United States is based on our long-standing policy of producing vehicles where demand is. Our wish is that the new plant will develop strong ties to the local community and produce the highest-quality products with strong emphasis on the principles of 'customer first' and 'quality first'."

    Outline of new plant

    Location Blue Springs, Union County,
    Mississippi, U.S.A.
    Product Highlander
    Production capacity 150,000/year
    Site Area Approximately 1,700 acres
    (approx. 7 million square meters)
    Investment Approx. 1.3 billion U.S. dollars
    Start of production Around 2010
    Number of employees Approx. 2,000

    source: stockwatch.com

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    Default Re: yet more 'gov't subsidized' jobs created ...

    I swear, Costa Rica looks better all the time.

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

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    Default Re: yet more 'gov't subsidized' jobs created ...

    ^^^ yeah, I hear you !

    What maddens me about all of these 'incentives' being offered to foreign auto manufactureres is that

    A. most of the state residents who are picking up the tab for these new plants in terms of lost business tax revenue (thus higher state and local taxes on individual workers to make up the difference), in terms of straight spending by state and local gov'ts on infrastructure improvements / training money / study money etc. (resulting in even more state budget deficits and/or tax increases on individuals) don't have a clue that they are picking up a tab that is typically worth $100k+ per 'new' job added (and sometimes WAY more than $100k per 'new' job added).

    B. if the same sort of gov't incentives / tax abatements / union-busting state laws had been directed towards US automakers instead of foreign automakers it might have at least slowed down their 'implosion rate'. Of course the UAW didn't help this possibility at all, insisting to the bitter end that people who sweep floors and mow grass should be 'entitled' to $18+ per hour.

    C. this is speculative so far, but odds are that once a foreign owned US auto plant has been in operation for 20-25 years, the foreign owners will decide to close the plant and build a new one in a different location rather than modernizing the existing plant. This brings into play a fresh injection of state/local incentive money, and also allows the foreign owned employer to lay off the workers at the 20-25 year old plant before most are eligible for retirement ! Otherwise, the foreign owned employer would wind up having to shell out money for actual employee health and/or retirement benefits instead of pocketing the profits and moving on to a new location when a fair number of employees at the 'old' location are starting to reach age 50 .

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