In response to news of Toyota moving its headquarters from California to Texas, I’d like to ask: Where’s the innovation?
Where’s the wealth creation in down-converting jobs in California to lower-paying jobs in Texas?
Getting companies to move existing jobs into Texas offshores Texas unemployment, but does not create any wealth. Instead, it destroys working-class wealth and moves the misery of unemployment elsewhere.
If TV reporting is to be believed, we have spent about a half-billion dollars to get companies to move about 7,500 jobs to Texas. That is close to $77,000 per job — money that could have been better spent on retraining the unemployed, investing in innovation or infrastructure.
Instead it went to down-convert jobs from elsewhere.
Moving the misery of unemployment around might look good to some, but it does not solve the problems we collectively face.