Krugman: Toyota, Moving Northward (National Healthcare, Education)

[RamboLiberal]

http://www.nytimes.com/2005/07/25/opinion/25krugman.html?hp=&pagewanted=print

Modern American politics is dominated by the doctrine that government is the problem, not the solution. In practice, this doctrine translates into policies that make low taxes on the rich the highest priority, even if lack of revenue undermines basic public services. You don't have to be a liberal to realize that this is wrong-headed. Corporate leaders understand quite well that good public services are also good for business. But the political environment is so polarized these days that top executives are often afraid to speak up against conservative dogma.

Instead, they vote with their feet. Which brings us to the story of Toyota's choice.

There has been fierce competition among states hoping to attract a new Toyota assembly plant. Several Southern states reportedly offered financial incentives worth hundreds of millions of dollars.

But last month Toyota decided to put the new plant, which will produce RAV4 mini-S.U.V.'s, in Ontario. Explaining why it passed up financial incentives to choose a U.S. location, the company cited the quality of Ontario's work force.

<snip>

But education is only one reason Toyota chose Ontario. Canada's other big selling point is its national health insurance system, which saves auto manufacturers large sums in benefit payments compared with their costs in the United States.

[NewJeffCT]

1. that should be our big selling point on national health care!

So many corporations have operations in Canada due to their health care system - GM, UTC, now Toyota. Heck, GM& UTC lobbied Canada to strengthen their national health care system

[Old and In the Way]

2. Totally agree.

I make this point every chance I get. Republican policies are anti-business.

Democrats ought to be pushing a national healthcare/education agenda that aims to make Americans competitive in this world. Republicans are selling out America to make the 2% more money than they can spend in their lifetime. What's the point?

[indepat]

3. Wow, who could ever have figured out national healthcare save mfgers

big bucks? Guess where this leaves the USA as GM and Ford continue to get their lumps and quite likely fade into relative obscurity on the world automobile scene, much due to the lack of a national healthcare system. Oh, the joys of rational and sane national policies fostered by RW ideologues.

[n2doc]

4. Wall mart did!

After all, they ask their employees to take advantage of health care programs designed for the poor...
Race to the bottom....

[marbuc]

5. This was my favorite passage

An enlightening snapshot of just what is wrong with the Republican agenda, and the US as a whole.

"What made Toyota so sensitive to labor quality issues? Maybe we should discount remarks from the president of the Toronto-based Automotive Parts Manufacturers' Association, who claimed that the educational level in the Southern United States was so low that trainers for Japanese plants in Alabama had to use "pictorials" to teach some illiterate workers how to use high-tech equipment."

[DFWdem]

6. Something they didn't mention

It costs 1/3 less to produce in Canada because of the exchange rate. Essentially, if it costs Toyota $30,000 to build it in Canada, that's about $20,000 in US dollars (provided they sell the product in the US).

*edit for clarity*