|
|
|
Jewish World Review April 21, 2005 / 12 Nisan, 5765 An education does not bring ‘economic freedom’ By Froma Harrop
http://www.JewishWorldReview.com |
Every year, the free-market Pacific Research Institute ranks
states on its U.S. Economic Freedom Index. It gives good grades for low
wages, liberty to pollute and tax policies that let the rich off the hook.
Last year, Kansas was number one.
If Kansas is such a great place for businesses to roam free, why
aren't businesses charging in? The institute asserts that gains in a state's
economic-freedom score are tied to a rise in per-capita income. That's
interesting, but the fact remains that Kansas' average per-capita income,
$30,811, is lower than that in all 10 of the bottom-ranking states.
Third-from-last Connecticut has the nation's highest, $45,398.
Perhaps companies are looking for something other than servile state
governments. Perhaps they want educated workers. And perhaps educated
workers want to live in communities where schools don't worry about teaching
evolution science. Freedom comes in many forms.
The Pacific Research Institute itself chooses to live in
regulation-happy San Francisco. And its "economic freedom" index pans
California as the second most "tyrannical" state in America. (New York is
apparently worse.) Why would a think tank dedicated to limited government
stay in such a sinkhole? Guess life is kind of good in Frisco.
For all their econometric lingo, these surveys are mainly
exercises in ideological posturing. And they don't always get the ideology
right, either.
How odd that a group promoting a "free economy" would praise
states for attracting companies with special tax breaks. After all, when one
corporate citizen pays fewer taxes, others have to make up the difference.
The 2004 Economic Freedom Index report uses an especially
gruesome example, which actually hurts the argument. It hails South Dakota
for luring the headquarters of Gateway, the computer company, out of Iowa in
1989.
The report neglects to note that nine years later, Gateway again
moved its headquarters — this time to a San Diego suburb. And, by the way,
Gateway last year laid off 75 percent of its workforce, including hundreds
of employees still remaining in South Dakota.
Many other states have given the store away to prospective
employers, only to be abandoned. Putting all the corporate betrayals
together would make one very long book of sorrows.
Nonetheless, states still jump into bidding wars for new
companies — the winner being the most pliant government. These contests
used to involve mainly automotive factories planning to employ thousands of
people.
Now any industry can play. Dell Computer recently managed to
wrestle an astounding $242 million in tax breaks from North Carolina over 15
years. That tax incentive comes to $10,756 a year for each $28,000-a-year
job. Observers say the Dell deal has upped the ante for other companies
demanding tax breaks. As one corporate-site consultant put it, this
arrangement "will be referenced in the next trophy project that comes down
the pike."
Intel, meanwhile, is busy shaking down Oregon and Arizona at the
same time. Despite annual sales of $34 billion and handsome profit margins,
Intel is threatening to lay off thousands of workers unless it gets tens of
millions in tax breaks. If it doesn't get the money, the company says, the
jobs are off to China.
There's a punch line. Intel's retiring CEO, Craig Barrett, has
been out giving speeches about how American companies are moving overseas
because American kids are getting such lousy educations. So what Intel
really wants are better-educated workers without having to pay the taxes
that support schools.
Of course, states have found other ways to deal with education
costs. Some simply cut education. To save money, school districts from
Oregon to Louisiana have reduced their school weeks from five days to four.
Many states just let the gambling joints milk their poor- and
working-class residents. Casinos, the officials say, are "good for
education."
My favorite idea for creative school funding comes from Nevada.
Brothel owners there have offered to pay taxes, mainly as a goodwill
gesture. Anything for the schools.
The truth is, a healthy civic culture makes a "good economic
climate." The state that offers an educated workforce, clean environment and
fair tax structure need not beg for jobs. Local pride is a virtue that
"pro-business" think tanks almost never measure.
Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
© 2005 Creators Syndicate |
Arnold Ahlert | |||||||||||
