« BACK  |  PRINT

RS

MEMBER DIARY

How Phoenix, AZ Got A Bite At The Apple

Or, How Travis County, TX Leftists Could Go From Steve Jobs To No Jobs

So Gov. Rick Perry seems to have gotten over the entire debacle that was his run for The GOP nomination and gone back to doing what Governor Perry does well. He’s on the phone swinging deals to bring jobs and power down South to The Rio Grande. Well not quite that far South, he’s targeting Austin, TX instead. The Austin American-Statesman reveals details.

Apple Inc. is proposing to more than double its operations in Austin over the next 10 years, creating as many as 3,600 jobs in what it is calling its Americas Operations Center. The proposal was announced Friday by Gov. Rick Perry, who said the State of Texas has offered Apple $21 million in incentives over 10 years from the Texas Enterprise Fund to win the deal.

He may not have been quite ready for the presidency, but back home in his milieu, Rick Perry makes it rain like Vince Young at a local strip joint. One thing stands in the way of Gov. Perry giving Texas a nice, healthy bite off the apple – Travis County Democratic Party leadership. According to the American Thinker, the Travis County Democrats are attempting to hold the entire deal up so that they can exert control over who Apple Computer hires.

Getting Apple to Austin, however, could hinge on the demand from some Travis County Democrats that Apple’s tax breaks be contingent on it hiring a certain percentage of economically disadvantaged residents. Local TV station YNN explained that Apple would have to “give preference to qualified applicants who are at or below the poverty line rather than those who may come across as the most attractive job candidates. Democrat Sarah Eckhardt, a Travis County commissioner, complained to YNN that Apple will thus have to change its hiring practices. “They will-hire the low-hanging fruit, and the low-hanging fruit in our community don’t need the hiring preference.

I assume the lovely and talented Mrs Eckhardt means “people who have their defecation in sequence and know how to work in an intelligent and reliable fashion” when she accuses Apple Co. of hiring “low-hanging fruit.” It’s almost as if these E-VIL Capitalist Pigs are involved in an iniquitous conspiracy to maximize their return on investment. Leave it to the Democrats to get all self-righteous while they attempt to horn in, steal some of the rake, and then hand it out to their followers in return for votes. Few things make me more nauseous than knaves who perceive a moral justification for their imprecations athwart decency.

So if the arrogant, class-warfare Democrats can turn off the Elizabeth Warren economic idiocy, here’s what they can help bring to their local community. The Austin-American Statesman describes what legitimate stimulus would look like below.

“We’re looking forward to building a new campus in Austin, which will more than double the size of our workforce there over the next decade,” Apple said in a statement. “Our operations in Austin have grown dramatically over the past decade, from less than 1,000 employees in 2004 to more than 3,500 today.” The city estimates that Apple would create between 650 and 3,635 full-time jobs if it builds its Americas Operations Center here. It estimates the average annual wages paid for new Apple workers in Austin would be $63,950. About 93 percent of the jobs are expected to be filled with local hires, the city said.

There is some good news out of this entire fiasco involving the Keynesian Cargo-Cult over on the left. It’s not good news for Texans who apparently prefer to chop off their own noses just to spite their faces. For people who like Apple Co products, the company has also entered into talks with Phoenix, Az. This would allow them to proceed with a slightly different take on an old famous saying about Texas. “We’ll go where our jobs are appreciated, and Texas can go straight to ____!”

Governor Perry will hopefully find ways to make the Travis County Democrats relent from their stupidity. He has a well-earned reputation as a governor who will stand up to the enemies of prosperity and growth. It’s time for him to get back to work and govern. Or else all the job-creators that have flooded into Texas will flood back out to escape idiots like Mrs. Eckhardt and The Travis County lunatic left.

COMMENTS

  • http://www.thestandardcandle.com Justin Spagnolo

    Look there’s another major competing personal/server computer/assembly/manufacturing company in Austin, Tx…

    and it’s possible that there is a big lobby to knock the deal down…

    Why? I may or may not work for unsaid company, and I may or may not confirm my suspicion that in the ‘talent aquisition’ game… it’s getting harder and harder to attract talent.

    Yes… I may be using anecdotal evidence, but it’s still very possible that competing companies don’t want Apple in Austin… and Democrats are all to happy to engage in class warfare while taking lobby dollars… just sayin’

    • Repair_Man_Jack

      :)

      • http://www.thestandardcandle.com Justin Spagnolo

        Thanks again RMJ, good read! But… I was deliberately misleading… the fact is my company is more ‘proximity’ to Austin as in ‘suburb’… I was deliberately aloof… not that I’m hiding… but in reality there are MANY tech companies in the Austin area… to name a few IBM, Dell, HP, Oracle/Sun, etc… you get the drift…

        As it were FWIW, I believe Phoenix is likely a weak alternative, due to the market costs for employers there. Austin is attractive because of proximity to assembly plants in Mexico(as is Phoenix)… But also because they have a fairly large talent pool (Info Tech) for lower market costs (in employment) in spite of their growing population. And I can tell you that competition is deep, and the security measures and background checks are thorough due to fear of corp espionage.

        Just sayin’… why should Apple get the perks of cheaper labor force domestically, and lower taxes than “Cupertino, CA’… Apple’s competitors have every reason to try to break the deal… not just for local HQ labor force with acumen but just overall advantages to having a footprint in TX for a long while… if’n you get my drift.

        • http://www.thestandardcandle.com Justin Spagnolo

          And no I’m not defending the Democrats here… I’m just saying it’s quite possible that lobby is pushing them to hit their regular talking points…

          I think Perry as a Governor is brilliant, and of course I agree with his aggressive economic state policy to attract big Tech… Austin is becoming an IT epicenter, I won’t say ‘new Silicon Valley’ but it’s possible they could become that if the west coast keeps getting traumatized by democratic state legislator’s tax and spend models.

          Most of the folks that I know in the IT industry are libertarian/independent minded… they mainly want economic efficiency and would rather geek on technology than geek on politics… when they indulge it’s to mock, many of us are ‘just the cynics in the computer rooms in the back and in the datacenters’ making your interwebs and communications and technological productivity work.

        • Repair_Man_Jack

          Give people enough options, and the contractors have a very hard time negotiating their people down. They also have a hard time negotiating their customers up. Margins get squeezed, IT execs stop being able to buy the new Lexus for cash. Yep. They want to keep Apple out of town.

    • justperhaps45

      Travis isn’t the only county in Texas. We have better fishing in Smith.

    • justperhaps45

      Travis isn’t the only county in Texas. We have better fishing in Smith.

  • yuripup

    So we’re all for the state giving away $21 million and the city another almost $9 million to a copy that made a profit of $25.9 billion last year?

    It needs the help why?

    Do you really think Apple was going to move when it already had a force of 3,500 trained people in place?

    • Repair_Man_Jack

      That’s sort of how local governments get revenue. Also, they have choices to go elsewhere with their facility any time the mood strikes them.

      • jimmyg

        At some point govt. giving incentives to companies to move to their locality, or not move away, and forcing states to compete with each other as to giveaways, is nothing more than blackmail on the part of the companies. These large companies have gamed the system by having states. compete with other states. for tax incentives to move their companies, or in some cases stay put. It strikes me as wrong at its core.

        It would seem that Tx. should be able to stand on its own with its regulatory climate, low taxes, and reformed tort system.

        • Repair_Man_Jack

          Apple has it’s options. Texas has competitors. It has to decide how badly it wants continued economic growth.

          • aesthete

            It’s a better idea long-run to stay out of these bidding wars; it ensures that taxes don’t have to be raised, maintains the integrity and autonomy of the government from business interests, and allows for a fairer and freer marketplace.

            California has shoveled plenty of money to corporations over the years — I bet they’d be much better off if instead of bribing corps to move there, they’d put some work into making a leaner and meaner government.

            Rick Perry should tell Apple that they can either move to a state where they’ll be allowed to prosper and with a great legal environment… or not. Their call.

          • JSobieski

            discriminate against small businesses that aren’t bribed.

            Tax people, not artificial legal constructs.

          • Repair_Man_Jack

            Just make an S-Corporation the only legal entity in your state. That accomplishes precisely what you’ve suggested without requiring any new legal debates.

          • JSobieski

            For example, a company with a foreign sharehold cannot be an S-Corp.

            S-Corp status also limits the number of shareholders a company can have.

            The option you are describing simply isn’t available to many companies.

          • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

            And yet we can never get it passed. Why do you think that is? The fact that we get so much money via that tax , people are so poorly educated and that we haven’t been able to break thru a certain level of class envy?

            I ask this in relation to my anti-free foreign trade epiphany and the Santorum desire to cut all corp taxes but to cut mfg to zero. I think Santorum, Newt and Romney would all LIKE to cut all corp taxes to zero but just don’t think the public would accept it. Agree?

          • JSobieski

            The public is uninformed in part because R’s just give up instead of trying to educate the public.

            Public education is a long term struggle, and no individual politician is incentivized to make the investment of time and effort to do so. Some are better than others though.

            This was always my biggest argument against Romney. We don’t know whether the guy is capable of really defending capitalism since he never seems to try and educate the public. Romney’s election strategies have been based primarily on biography, not policy.

          • jimmyg

            http://tucsoncitizen.com/arizona-news/2012/03/23/was-apple-serious-about-phoenix-area-site/
            Snip
            “Their have been no public hearings or presentations here as there have been in Austin.

            Jerry Colangelo, co-chairman of the commerce authority, said while there are always issues that can be handled better, in this case that might not have mattered.

            ?They (Apple) pretty much knew what they wanted and where they wanted it, and the real question is, was it an even playing field to begin with? ? The efforts were extraordinary on our part,? he said.

            Candace Weist, president and CEO of West Valley National Bank, said, ?I heard some stuff, and I don?t know how accurate it is. But really and truly my feeling is they (Apple) weren?t really ever planning on coming. They were going to go to Austin anyway.?

            Weist is a member of the boards for both the commerce authority and GPEC.”

            Contrary to the post, it appears that Apple told Az officials on Mar 8 that Austin had been chosen pending legislative approvals. There was some feeling that Phoenix had been played, and that Apple was using Phoenix to get incentives out of Tx.

            Snip

            “In Austin, questions lingered, too, especially about whether Texas governments really needed to offer incentives. Apple is rolling in cash, and it may have intended to locate in Austin all along and perhaps was not serious about the Phoenix area, said Jon Roberts, an Austin economic-development consultant.”
            Snip

            This type of game playing on the part of both the govt. and the corps. distorts markets, and is subject to gamesmanship and chicanery on both sides. Ultimately the taxpayer pays for these incentives.

  • Common_Cents

    I was literally interrogated by 11 people representing various city regulation. They each had their 3-8inch thick regulation books. It’s like I committed a crime! And here I was going to bring 100 jobs to this city which has very high vacancy rates. At the end, the city manager and a couple others tell me they’d really like us to bring the jobs there. I had to literally bite my tongue not to blurt out “REALLY? REALLY? You can #&$^ off!” I just smiled and walked out to do a deal somewhere else. All those city libiots will then sit around and wonder why jobs are leaving the city, they just can’t figure it out.

    • Repair_Man_Jack

      just trust her.

    • Thomas_Hauber

      So which city was this?

  • Seedyrom

    what dems want. Its tough on job seekers but 1st priority is not income. Now if dems want to fatten the deal with more tax incentives then maybe so long as its state money. If they lose the deal then it proves once again that stupid people don’t deserve to be politicians.

  • goodgovernance

    Helping the economically disadvantaged find and keep good jobs is a good thing. But you don’t ultimately help anyone by forcing companies to create make work positions just to fill some government driven demand, not a market one.

    I thought people in Texas understood this, but I suppose the Democrats there thought of all that Apple money just waiting to be siphoned off, and it drove them batty.

    • Thomas_Hauber

      Austin is a much different place than the rest of Texas.

      • Repair_Man_Jack

        You’ll frequently see bumperstickers reading “Keep Austin Weird”

        • curtmilr

          is another favorite!

          Probably not Cuban, but Michael Dell might be a competitor.

          But what’s to stop them from locating in Round Rock or Georgetown just slightly north in I-35? Perry gets the jobs & growth and sticks the Travis County demwits in the eye in the process!

          • Repair_Man_Jack

            They probably were interested in Austin for the sake of using a pre-existing facility. But that’s my speculation. Other things may be at work.

      • oldmom2

        Both full of progressive liberals. However Austin has much better dressed people..lol. Have you ever been to Portland? ;-)
        Both have really, really good beer.

      • irishgirl

        than the rest of the state……

  • tngal

    As long as the employees are LEGAL citizens it doesn’t matter if its low or high hanging fruit. They’re going to get the most qualified. That’s what businesses do. Less qualified or less experienced can pick up the jobs the qualifiedand experienced person just left.

    (The only thing that trumps best qualified is nepotism or favoritism. In which case qualifications are irrelevant.)

  • mkozikowski

    Companies are turning to Texas to base operations.

    Mitt is the leading candidate and Rick bailed out early.

    How do we justify Mitt as our candidate and throw Rick under the buss. Seems that past and present experience should dictate just the opposite.

    • gekster

      Romney was Gov from 03>07.
      Over 5 years ago.
      Are you saying he is still pulling the strings there?

      • mkozikowski

        It the government he created that is pulling the strings.

        • acat

          I don’t like Romney, but blaming him for all of the problems in the People’s Republic of Massachusetts seems .. willfully blind.

          Mew

        • gekster

          I don’t think so.
          Do you have anything to show that particular.

      • justperhaps45

        Very well said!

      • justperhaps45

        Very well said!

    • justperhaps45

      Was it Rick’s ineptitude expressing ideas or his failure to outlaw sanctuary cities?

    • justperhaps45

      Was it Rick’s ineptitude expressing ideas or his failure to outlaw sanctuary cities?

    • renl57

      It’s long past time for Perry’s supporters to admit that he just wasn’t a very good candidate.

  • bk

    Ref: her blog

    I am willing to overlook the weakness in the ?competitive site? argument if Apple helps the County achieve some public good that the market isn?t supplying on its own. I have, therefore, suggested to Apple that it:
    1. guarantee that these new jobs will be filled predominantly by Travis County residents;
    2. recruit, train and hire economically disadvantaged residents; and
    3. participate in funding the Lone Star Rail stop servicing its campus.

    That last one will raise some eyebrows. The project is one they’ve discussed for 10 years and won’t even start for at least 6 (which probably means at least 10), but they figure if they can get Apple to buy in that maybe it will get off the ground someday.

    • Repair_Man_Jack

      Does Apple even want Lone Star Rail to service its campus? If they has asked for the stop, this would be fairly reasonable.

      • bk

        From a liberal point of view, instead of having to put taxpayer funding of rail money to a vote (not a given, even in Austin), they can instead call it a tax break for Apple to bring jobs here and then suck money back out to go to the latest rail dreams.

        It’s kind of like how a portion of taxpayer money to unionized govt workers becomes donations to Democratic candidates. That’s nothing more than a kickback scheme to Democrats’ favorite cause – their own elections.

  • macbookben

    n/t

  • AceInTX

    This is a place where the slogan is…”Keep Austin Weird”.

    It’s a haven for retired Hippies, Beatniks and leftist rednecks and always has been.

    Look for San Antonio to make a big splash in this if the problems in Austin continue…San Antonio is a majority Democrat town…but they know which side of their economic bread is buttered…if the Austin Dummiecrats persist in this foolishness…Perry will turn to San Antonio to roap the business in.

    • avagreen

      LOL! I have some funny stories having gone as the only non-nudist at the shore of the lake.

  • gawken

    Nice, very nice…really, really good writing….RMJ..so when can we expect the first novel?