Tuesday, April 15, 2014

I read that

it looks like Remington is leaving New York after all.

They're headed to Alabama and most likely the final nail in the coffin was the SAFE act, but I'm pretty sure taxes and other governmental meddling sure pitched in to make the final decision.

I understand that Remington is relocating a number of workers which is both generous and smart. Machinists and other gunmakers with experience are probably hard to retrain.

I suppose some people will stay in New York but that makes no sense to me as Ilion is likely on their way down the tubes with the largest business in the area leaving. They are taking an awful lot of jobs with them.

If I were running Remington I suppose I would do the same  thing. Taxes in Alabama are lower and so are wages and the cost of living. There's a willing workforce there eager to take the work. Alabama is also a lot more gun friendly.

Corporations generally don't want to move. They enjoy being in a friendly place and being a part of a community. There are a lot of pretty upset people when they do leave and that's not good for public relations.

Corporations are usually forced to move. They seldom want to. Moving is expensive. Like almost all businesses they have to make a profit and when the bottom line goes down they have to make a decision.

Ilion, New York is about to take a pretty big hit because one has to remember that it isn't just Remington employees that are going to get hurt, it's the entire local economy. Most likely Ilion is going to be hurting and hurting pretty bad.

Besides the Remington employees that stay behind being out of jobs there are quite a number of other businesses that are going to feel the impact of the move.

People need gas to get to work. They eat. They go to movies and do all sorts of things. In short the trickle down effect is going to be pretty noticible on the community.

For example, the gas station owner might have to lay off one of his helpers because business is down. The local diner near the factory might have to shrink or may even fail. That's more jobs gone.

Even the supermarkets are going to feel things as the local economy changes. They'll be selling fewer steaks and more tuna noodle casserole ingredients.

The city will also see revenues decrease as the taxes Remington paid locally disappear. People that used to buy things and are not anymore are now no longer paying sales taxes. Wage tax income will also drop off. 

For two centuries Remington has been in New York and has been a local source of pride. Adios.

Of course, when jobs disappear, crime tends to go up and the neighborhoods seem to crumble a bit more and begin the downward spiral. Welfare and EBT applications will increase. People will go on unemployment until thae benefits run out.

On the other hand, down in Alabama Remington will be met with open arms, likely be given tax breaks and the local economy there will pick up.

The employees will pretty much be buying the things they used to buy back in New York. A number of small businesses will open. I suppose that some shrewd guy named 'Sarge' will open a diner outside the gate ot the factory and will do well.

Sarge would be smart to learn a few New york favorites to put on the menu until the displaced New Yorkers acquire a taste for grits, biscuits and gravy.

Then again it probably won't take New Yorkers very long to discover some pretty good southern cusine. 

In a few months the former New Yorkers will be wondering why Remington didn't move down south twenty years ago. Most likely it will take a winter or so before they discover they don't have to go outside in freezing weather to shovel snow.

Meanwhile, back in Ilion.......

Nice work, New York. You brought it on yourselves.




To find out why the blog is pink just cut and paste this: http://piccoloshash.blogspot.com/2009/12/my-feminine-side-blog-stays-pink.html NO ANIMALS WERE HARMED IN THE WRITING OF TODAY'S ESSAY

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