The front page of the News and Observer trumpeted that North Carolina’s population has finally exceeded 10 million. The story, written by Charlotte Observer reporter Ames Alexander and News and Observer reporter David Raynor, quotes a number of experts for their opinions about what brings them here.
Gov. McCrory says it’s the economy and quality of life (and he even works in a cheesy mention of the new state marketing motto):
“With our growing economy, great colleges and universities and quality of life, from the mountains to the coast, nothing compares to North Carolina,” Gov. Pat McCrory said.
Chuck McShane works for the Charlotte Chamber and should know what attracts people here:
“People are flocking for jobs, opportunities, mainly to our urban areas,” said Chuck McShane, the director of research at the Charlotte Chamber.
These two probably hear a lot from the companies that move here, so it’s understandable they were quoted. But then the reporters slipped this in (emphasis mine):
Rapid growth has continued in many neighboring states as well. In the most recent year, all but three of the 10 states with the largest population increases were from the Sunbelt.
Among the reasons: Many businesses are seeking fewer regulations and a less expensive workforce, while many Northern retirees are seeking warmer climates.
LOL, whut? Among the reasons businesses are moving here are “fewer regulations and a less expensive workforce?” You mean, the two experts just quoted somehow missed these? This is according to whom? The John Locke Foundation? What’s the source?
The oft-repeated “fewer regulations attract business” falsehood of the conservative canon is often bandied around by journalists as if it’s fact but I’ve yet to see any reliable polling or surveys of companies that back itup. I can’t find any press releases that mention it from either the state or any companies.
A story on SiteSelection.com details Fidelity Investment’s decision to open up shop here:
“We’ve had a tremendously positive experience in North Carolina since we first began doing business here in 2002,” Fidelity Senior Vice President and North Carolina Director Don Haile said at the project’s announcement in Raleigh.
One positive that drove Fidelity’s expansion, Haile explained, was the Triangle’s strong capacity to “provide us access to a highly educated talent pool. We very carefully looked at what’s available and the stream of people getting educated and the number of degrees [awarded] in what we want.”
… and also this from Fidelity:
The Triangle’s “incomparable quality of life” was another key factor in Fidelity’s decision, Haile continued.
“I know what a special place this is,” he said. Before joining Fidelity in 1998, Haile worked for 34 years with IBM, much of it in RTP. He returned in 2002 to manage the financial titan’s operations in the prestigious park.
With a sizeable number of relocated employees involved in the project, quality- of- life factors loomed particularly large.
Chemical maker Albemarle Corp. moved its operations from Baton Rouge to Charlotte for quality of life:
“It obviously has that big-city feel. The airport has direct flights to Frankfurt (Germany), which is wonderful for our team,” said spokeswoman Ashley Mendoza. “Since the Rockwood acquisition, we have a large presence in Frankfurt. Charlotte just has a lot to offer, and it’s basically the best place, we felt, for the new company.”
TTT Floor Care North America cited Charlotte’s talent pool:
“Following an extensive evaluation process, we chose Charlotte because it provides access to talent with the critical consumer products expertise needed to fuel the growth of our iconic brands,” said Gary Scott, President of TTI Floor Care N.A.
North Carolina’s new Economic Development partnership mentions nothing about fewer regulations and less expensive workforces on its website. Instead, it brags about (wait for it) … our quality of life:
The myriad business opportunities combined with a moderate climate, a culture rich in history and the arts, world-class sporting events, recreational opportunities from the mountains to the coast, a low cost of living and low construction costs will continue to bring companies and workers to North Carolina.
A Google search of “‘north carolina’ less expensive workforce” turns up no relevant hits. Nor does a search for “‘company relocates’ to ‘north carolina’ ‘regulations’.” or the less-specific “company ‘relocates’ to ‘north carolina’ ‘regulations.”
I realize these examples are only a small sample but it appears to be much easier finding “quality of life” answers than finding “fewer regulations and less expensive workforce” answers on the Internet.
So, then, what is the source of this fiction and why do reporters keep repeating it?
I found another example of this earlier this month in the ultra-libertarian financial publication The Fiscal Times when a conservative friend shared it on his Facebook timeline. The headline of Beth Braverman’s story reads “The Big Reason Toyota is moving 3,000 jobs from California to Texas” and it quotes Albert Niemi, a professor said to be familiar with the reasoning:
Toyota said at the time that the relocation was about bringing together its different divisions to foster a more collaborative and efficient workplace, and putting the company closer to its manufacturing base in southern states.
There was another big factor, too: “It was really about affordable housing,” Albert Niemi, dean of the Southern Methodist University Cox School of Business said recently, according to the Dallas Business Journal. Niemi reportedly has inside knowledge of the move. “That’s what started the conversation. They had focus groups with their employees. Their people said, ‘We’re willing to move. We just want to live the American Dream.”
So, the source upon which Braverman’s story rests says better collaboration and affordable housing are the reasons Toyota moved. But then Braverman adds this:
While home prices may have been a main driver, the company was likely also motivated by Texas’s lower taxes and a regulatory climate that’s seen as much more favorable to business.
Oh, really? So, even though the main source in your article never mentioned lower taxes and regulatory climate you the reporter magically proclaim it’s the real reason, without any proof whatsoever? Braverman contradicts the main source for her story, the Dallas Business Journal story by Bill Hethcock:
Sure, the low taxes, relaxed regulatory environment and Central Time Zone are nice. But none of those factors tops the list of reasons Toyota decided to plant its North American headquarters in Plano, bringing in more than 3,000 jobs, mostly from California.
The main driver of Toyota’s move from Torrance, California, was housing costs, according to Albert Niemi Jr., dean of the Cox School of Business at Southern Methodist University, who has inside knowledge about the move. Niemi shared the anecdote at an SMU Cox Economic Outlook Panel on Friday morning.
Of course, Braverman is not really a journalist and nor do we expect her to be when she writes for an extreme-libertarian publication. Even so, if she repeats this free-market nonsense often enough, people might start to believe it. Or at least, not question it when they should.
I believe businesses move to North Carolina because it’s a great place to attract and keep good people, which is essentially the same reasons that their prospective workforce moves here, too. Go you where the talent is. While businesses may be attracted to “fewer regulations and a less expensive workforce,” I’ve not been able to find any company that attributes their move here to these things (on the record, at least).
I would hope a good reporter would be skeptical enough to challenge these assumptions. Alexander and Raynor are good reporters, both Pulitzer-prize finalists. Surely they would do their homework on this, wouldn’t they?
So, gentlemen, please either tell us which companies cite our “fewer regulations and less expensive workforce” as their reasons for moving here or refrain from attributing these reasons for their moves. Our state deserves to know.