How to lead a recovery

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  • HaHaHaHa Othello, WA
    May 30, 2013 2:41 p.m.

    If California and Illinois are such DREAMY places to live and run a business, what are all the leftist DN nuts, and these two state governors arguing with everyone about? What are you getting all worked up about? Gov. Perry's actions become meaningless, if that is really the scenario! The fact is, Texas has twice the population Illinois has, and has managed its resources much better. California is in the same boat as Illinois, but it does have better weather. Yea, you can pretend like California is getting its budget under control, and it might happen, but it is based on a whole lot of IF's. As they promote themselves as the center of the universe in smarts and education, few places depend more on government spending and support then these tow kinds of states. Cut government spending in Texas, and it hurts but life goes on. Cut it in California and Illinois, and everything shuts down!

  • mark Salt Lake City, UT
    May 28, 2013 12:58 a.m.

    "So WHY stay in NY City? Where is the incentive business wise?"

    You've gotta be kidding. Just the fact that you are asking that question shows you do not understand business in the least. The economic center of the world and this guy asks where is the incentive business wise.

    "I guess if you want to just work for the government." You mean like firefighters and cops and soldiers and people that make sure our buildings are built safely?

    "Every socialist led city and state is drying up and dying. EVERY SINGLE ONE!!!"

    Well I guess it's a good thing then that there are no socialist cities or states in the US of A.

  • morpunkt Glendora, CA
    May 27, 2013 12:06 p.m.

    I wouldn't live in Texas for all the Tbones in the world.

  • patriot Cedar Hills, UT
    May 27, 2013 7:25 a.m.

    Maybe the bast way to understand what TO do is to first look at what NOT TO do. Take New York City. This socialist led city (and state) just jacked up its taxes...again ... for the wealthy. Get this .. you pay 39% federal and 12% state. Add to that the various CITY taxes that have been added and continue to be added and you have a current tax rate over 60% and headed toward 75% if progressives get their way. Translation - if you are wealthy you get to keep about 35% of what you make... the rest goes to the government.So WHY stay in NY City? Where is the incentive business wise? I guess if you want to just work for the government. Every socialist led city and state is drying up and dying. EVERY SINGLE ONE!!! People who have money and who COULD invest and grow their companies are leaving. You don't LEAD an economic recovery if you leave - only if you stay. Pretty simple. Simple for a common sense person but not for the progressive mind. Progressives are ANTI-BUSINESS. Always have been and always will be.

  • patriot Cedar Hills, UT
    May 27, 2013 7:13 a.m.

    re:The Real Maverick

    Can't argue with your points. Bailouts make no sense. The billions spent on GM by taxpayers - for example - will never be repaid. GM - at the end of the day - went through a managed bankruptcy anyway so the bailout rewarded bad business practices including continuing to support and work with the business killing UAW.

  • The Real Maverick Orem, UT
    May 26, 2013 11:06 p.m.

    "How to lead a recovery? First don't be a socialist. Second DO be a capitalist."

    Totally agree.

    Which is why I was so angry when bush and the repubs forced a $900 dollar bailout to Wall Street. Complete and utter class warfare. Nothing more than reverse Robin Hood! Make us, the productive members of society bail out the greedy, lazy, and entitled. It's so upsetting how Wall Street and big banks feel so entitled to our hard earned money!

    Other secrets to recovery? Don't give out unsustainable tax cuts to the rich. They aren't creating jobs but sitting on trillions of cash. Don't invade a country that didnt attack you. And don't deregulate the markets. Keep the time tested safety belts in place. Without them, incompetent bankers will take unnecessary gambles and lose large amounts of money. To which they will ask for the rest of us to bail them out. Of which, repubs are more than happy to oblige.

    NO MORE BAILOUTS! Let those lazy and entitled businessmen fail, no matter what the GOP says!

  • NeilT Clearfield, UT
    May 26, 2013 10:11 p.m.

    Education and mass transit are critical. The frontrunner station in Farmington is a good example. Retail development is exploding there and still building. Harmons and numerous other retailers have located there. No doubt taxes are an important part of the equation. There are some insightful comments on here. Glad to see not everyone is embracing tea party conservatism and buying into everything Rush Limbaugh says.

  • patriot Cedar Hills, UT
    May 26, 2013 9:30 p.m.

    How to lead a recovery? First don't be a socialist. Second DO be a capitalist.

  • atl134 Salt Lake City, UT
    May 26, 2013 5:22 p.m.

    Birth rates have a lot to do with this too, a large part of why Romney in the low-birth rate Massachusetts was 47th of governors in job creation, if you don't have many more workers coming in than workers that retire you don't actually need many new jobs. Huntsman was #1 in job creation, naturally Utah was at the opposite end of population growth/birth rates.

  • atl134 Salt Lake City, UT
    May 26, 2013 5:18 p.m.

    Texas's growth is primarily in low paying jobs, that's part of why they're last in the nation in terms of percentage of people with health insurance.

  • jparry Provo, UT
    May 26, 2013 4:41 p.m.

    The Great Recession, or Little Depression, is exposing something very different than this editorial claims, but it will take more time, apparently, before the Deseret News can see it. States that consistently give tax breaks to corporations on the backs of its school children and the poor and disabled will live to regret their short-sightedness. Even many of Utah's business leaders can see the damage that is occuring and they are calling on this state to take better care of its people, especially its children.

    As for the report you cite, this is a deeply flawed study, and its authors hardly command the respect of economists who pay attention to what's actually happening.

  • The Taxman Los Angeles, CA
    May 26, 2013 1:39 p.m.

    @Ben H

    The decision regarding where to locate depends on many factors, but the major factors depend upon your type of business. If you were correct regarding proximity of customers being #1, most manufacturers would be located in the United States (rather than China) because the United States is the largest consumer market in the world. It is good to be near your customers if you are manufacturing large items such as automobiles, but for small items that can be cheaply transported, proximity to customers is less important than other considerations. For companies located in Silicon Valley (who mainly produce intellectual property) the most important factor is securing the best talent (education and brainpower) they can get, which is why they are located near Stanford and Berkeley (who along with Cal Tech and MIT produce the world's best engineers).

    My son is a EECS (electrical engineering/computer science) major at UC Berkeley right now. Most of his classmates in engineering are of Asian descent, but only 13% of engineering students on campus at Berkeley are international students. The bulk of his classmates attended California high schools and are Asian Americans.

  • Mike Richards South Jordan, Utah
    May 26, 2013 1:01 p.m.

    All of us should cheer any company that decides to move to another State to save money rather than to go off-shore. In today's world of high-tech, any computer oriented company is as close as the terminal on your desk. I use "face time" to talk to family and customers wherever they are in the world. One son regularly shares his experiences in India where he goes several times a year on business.

    Texas should be applauded for reaching out to American companies and offering them a way to stay competitive in a world where taxes often mean the difference between staying in business in American and going off-shore.

    Any State that thinks taxes don't matter had better sit up and listen - before they lose their tax base entirely.

  • Ben H Clearfield, UT
    May 26, 2013 12:27 p.m.

    The number one reason that a business chooses one location over another is to be close to their customers. Silicon Valley has an advantage because so many other companies are there. It's easy to sell, do business and make money when so many of your customers are neighbors. This also give Texas an advantage over states like Utah.

    Behind the location of your customers is where you can hire the best people. You might say California has an advantage because of it's educational system, but when you go inside many Silicon Valley firms, you find so many of their employees are from Asian countries. It could be that California gives itself an advantage by being friendly to immigrants and allowing those who are from elsewhere to get an education. No having to go very far to find people to work for you is an advantage no matter what business you are in.

    Taxation and regulation are probably third on the list. Companies will locate where the local government doesn't have their hands in your pockets. This is where California and New York lose and Texas and Utah win.

  • There You Go Again Saint George, UT
    May 26, 2013 12:08 p.m.


    Rick Perry leading ...

    It's a good thing the jobs junket out was not the third thing on his list...


    Fertilizer plants are moving to Texas?

  • The Real Maverick Orem, UT
    May 26, 2013 11:43 a.m.

    If lower taxes and fewer regulation meant economic growth then we would have seen a booming economy during the 2000s. So why was it the worst in job creation since WWII?

    Repubs? Where are ya? Can't blame Clinton for everything.

  • Stalwart Sentinel San Jose, CA
    May 26, 2013 11:22 a.m.

    Two things:

    1 - Somehow the DesNews opinion folks believe that when a job moves from one state to another that is recovery/job creation. Did it occur to them that no job was created in that scenario? That isn't a recovery, it's just swapping places. When you move your wallet from your right pocket to your left, did you just create money? Of course not. Texas, et al are simply engaging in a "race to the bottom" in terms of regulation and taxes because they cannot compete on actual job creation. Texas et al are banana republics that export cheap labor. If a job paying $100K in CA is moved to Texas and now only pays $75k, the $25K flows up to the owners. It's trickle up economics, folks.

    2 - The reason why CA has Facebook, Twitter, Google, Yahoo, Apple, Cisco, eBay, Adobe, HP, Juniper, Wells Fargo, Intel, Marvell, Salesforce, SanDisk, Intuit, etc, etc... is because educated people live in California and California engenders start ups. Texas is known worldwide for having a poor educational infrastructure; excluding Dell, the whole of Texas wouldn't have sufficient brainpower to run one of the companies listed above.

  • 1aggie SALT LAKE CITY, UT
    May 26, 2013 11:19 a.m.

    @ Hemlock
    "Businesses are like athletes who are free agents. They go where there is the best deal."

    This is only true for low value, less innovative type of business operations. Operations that do not involve a substantial "skill set" (such as customer service centers) will locate in low-cost states. But high value businesses, the kind that change the world like Apple and Google, involving innovation (and paying high salaries) will naturally locate in places like California where the education system is second to none.

  • Truthseeker SLO, CA
    May 26, 2013 10:33 a.m.

    TX and other states are experiencing growth largely from the oil and gas boom.

    "If you’ve been reading our reporting on Rick Perry’s record in Texas, you’ll know that a large part of the state’s economic success can be attributed to its rapid population growth. Of course, Perry could take credit for that if, as some conservatives suggest, the population grew because of people flocking to the state’s lax regulations and low taxes.
    To do a limited test of this theory, I plotted each state’s population growth from 2000 to 2009 (encompassing most of Perry’s tenure) against its fiscal year 2006 tax revenue as a percentage of gross state product (GSP), the state-level equivalent of GDP. There’s basically no relationship: The two are negatively correlated, with a 1 percent increase in the revenue/GSP ratio associated with a 0.7 percent drop in population growth. But the tax burden only explains 6 percent of variation in population growth, so it’s hardly a determining factor. "
    (Dylan Matthews, The Washington Post 2011)

  • Shaun Sandy, UT
    May 26, 2013 10:07 a.m.

    If this article is true then why aren't there more no state income states on the the list? Also who would really want to live in Texas?

  • Truthseeker SLO, CA
    May 26, 2013 10:03 a.m.

    ALEC is a secretative conservative lobbying organization which writes legislation such as the infamous "Stand Your Ground Laws" passed in Florida.

    CA response (in part) response to Rick Perry:

    I can understand why Rick Perry is interested in California. We were the national jobs leader for most of the last year with 257,000 new private sector jobs said Kish Rajan, director of the Governors Office of Business and Economic Development. "But business relocations only account for 0.03 percent of annual job losses in California. At that rate of growth, it would take 20 years to lose just 1 percent of our businesses to relocation. The reports show that no state has ever poached their way to long-term prosperity. Real job creation comes from California's history as a national leader in start-ups and the expansion of homegrown businesses."

  • Hemlock Salt Lake City, UT
    May 26, 2013 9:08 a.m.

    Businesses are like athletes who are free agents. They go where there is the best deal. Most of us move, changes jobs or locations when it is in our best interests. The governors of California and Illinois should get the message.

  • Diligent Dave Logan, UT
    May 26, 2013 9:04 a.m.

    "(Texas) also grew by 18 percent in population and increased dramatically in terms of its share of the nation's total economy."

    The population growth MORE THAN ANYTHING, I assert, is the REAL reason for Texas prospering. And probably much, if not most, of that growth came "naturally" (via BIRTHS). Immigrants, whether between nations or sub-divisional states within a nation, certainly can and do have a major impact on the "growth" of a given region, at least for a period of time.

    However, the riots by "immigrants" and/or their posterity in Sweden, a nation that has a very wide "social safety net" of welfare, shows that the latent, and sometimes not so latent disparity between the "haves" and the "have much less's" of society shows "growth" via the womb of another nation or ethnicity has it's definite drawbacks.

    Too often, when something good happens, there are many standing, waiting to take credit for it. However, the cause of that good is often far different than those who would attempt to suggest a causal effect from a correlation.

    However, economies cannot grow with stagnant or shrinking populations.

  • marxist Salt Lake City, UT
    May 26, 2013 9:03 a.m.

    Of course for labor this is a race to the botton, Labor gives and gives and gives, while capital takes and takes and takes. Eventually there will be a reckoning with much suffering. American labor increasingly survives under immigrant conditions, e.g. multiple non-benfit paying jobs, dangerous working conditions, complete insecurity. Texas is a paradise I'm sure.

  • Ultra Bob Cottonwood Heights, UT
    May 26, 2013 8:55 a.m.

    The things that might cause a business to relocate for non business reasons, would be outright bribery or government favoritism. In either case, the people will suffer from the action.

  • The Real Maverick Orem, UT
    May 26, 2013 8:55 a.m.

    Leading your state to be have the least amount of regulations is NOT a good thing. Just ask those who live in a certain town in Texas whose lives were destroyed when a certain fertilizer plant (which had a lonnngggg history of problems) blew up.

    Contrary to what this editorial thinks, it's not a good thing to get rid of so many regulations that even 3rd world countries are rolling their eyes.

    The bottom line is, we aren't recovering because regulation and taxes are too high. The rich "job creators" are sitting on trillions. The real issue is that the rest of us are lacking so much wealth and buying power that we cannot force companies to hire in order to produce more goods.

    See, the economy grows when the masses not the minority has the bulk of the wealth. That's the #1 issue today. The rich have rigged the game and have it dead set against the poor and middle class. Until we change this progress won't happen.

  • Rikitikitavi Cardston, Alberta
    May 26, 2013 7:27 a.m.

    I have friend who is a long-time accountant in Chicago. If I owned a business in Illinois, I would be the first to move.

  • What in Tucket? Provo, UT
    May 26, 2013 7:24 a.m.

    Maybe Mr. Obama should read this article.

  • RBB Sandy, UT
    May 26, 2013 7:21 a.m.

    I really wonder why this would be news to anynone. If you make it harder for me to run my business, I am going to go somewhere that will make it easier. While some companies are stuck where they are (the local store has to stay local) , plenty of businesses can move. Why would anyone owning a business that can relocate stay in a state run by politicians who view business as the enemy and force workers to join unions whether they want to or not? Those on the left know what is happening and that is why the National Labor Relations Board is fighting Boeing opening a new facility in So. Carolina. Tax heavy liberal states cannot compete and they arr trying to use the Federal Governnent to slow the exodus of profitable companies.

    Likewise, profitable companies are leaving the US because we have such a high corporate tax rate. Liberals want to feed off these companies, but businesses who can are taking their facilities and jobs to other countries. It is not uncommon to see even snall comapnies who have some of their workforce overseas. The irony is that some who do this vote for liberal policies.

  • no fit in SG St.George, Utah
    May 26, 2013 7:04 a.m.

    Lots of employment opportunities in Texas?
    Anyone been paying attention to weather lately?
    Yes, it may be economically favorable in Texas, but not if your town and home are repeatedly destroyed or blown away by a tornado. Then comes the floods where one's property and surroundings float away.
    California's natural disasters haven't come close to what climate change is bringing, more frequently, to Texas and it's surrounding states.