Invasion from our South

Published January 22, 2014

by Gary Pearce, Talking About Politics, January 21, 2014.

A TAPster who spent years working in economic development shares this:

 

“The most astonishing news last week (other than the daily calamities at DHHS) was the invitation we received via email to attend a fundraiser in Raleigh for the governor of South Carolina. Yes, the head sandlapper is coming to Raleigh to raise money at the behest of a Raleigh lobbyist.

 

“Huh?

 

“Why would any North Carolina lobbyist think this is a good idea and why would any North Carolinian attend and give money? Gov. Haley leads an administration that is agile and effective when recruiting new business and jobs to her state. She and her team are kicking North Carolina’s butt all over the place in the industrial recruiting wars, and won’t think twice about luring away our existing businesses, aggressively wooing our prospects with big incentive packages we can’t match, or starting the Civil War again if that seems necessary.

 

“What we need is a road block at South of the Border and a strong dose of reality in Raleigh.”

 

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January 22, 2014 at 3:58 pm
Alan Ferguson says:

Please, hold the hysterics. How many incentives dollars does Ms. Haley have at her disposal? One has to assume that even South Carolina cannot afford to forego all taxes businesses ordinarily pay. Don't you also believe that there will remain some state services that must be paid for after the abatement and forgiveness of so much of the customary corporate tax burden? South Carolina has put itself into a race with the fiscal wolf. They may outrun the increased demands put upon the state by their new businesses, or they may not; then they'll be forced to raise taxes to make ends meet.

As for South Carolina catching up with North Carolina, it's just not happening in any measurable way. We are still far ahead in every measure of income. Sure, South Carolina will pick off a number of the footloose companies whose businesses allow them to go wherever wages are lowest, but North Carolina will continue to get most of the big value-added stuff--unless our current administration erodes our position by rendering the two of us indistinguishable.