Survivalism & Self Sufficiency Topics > COVID-19 Coronavirus Pandemic

Economic impact of the COVID-19 coronavirus outbreak

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David in MN:

--- Quote from: iam4liberty on August 25, 2020, 12:31:59 PM ---Funny you should say that.  I was on a conference call with an exec who let us know they are downsizing their LA office by moving 75% of employees there to Plano.  90% decided to do the move rather than taking compensation and staying in California.  Their biggest client, a big global manufacturer, has been moving most of their US headquarters staff to Texas and incentivized their suppliers to do the same.  One of their competitors is doing the same with Tennessee.   So, when these companies move, they take others with them.

--- End quote ---

Not that surprising. Depending on whose numbers you look at right now Texas is the #1 location for companies leaving California. Texas already boasts ~50 Fortune 500 businesses. The shift is that most Texas business is legacy stuff like oil, aerospace, and infrastructure. If they could woo some of the tech sector that state would look like a juggernaut.

I've got kin all over this country and the aunt in DFW just keeps talking about the massive growth from 2019-2020. Which is odd because back in the 70s when they all struck out my uncle went to work in tech in California and Texas was (not to be rude) kind of thought of as a backwater. Those tables are turning.

I can also anecdotally say that both my mother and sister were/are 80% travel as project leads. Mom was finding that all her work was Texas and fly-over states like your Kentucky, Tennessee, Ohio, etc. My sister is national but despite living in Virginia she spends about 2/3 of her time in only one city: Atlanta.

I'm wondering if COVID was just the push people needed to get out of office they didn't really want. A lot of companies squander money horribly keeping up lavish offices that provide little value.

There is a more macro thing going on that this is forcing us to face. I think companies will redefine "going to work". It also gives the excuse to shrug high tax areas. Things change quick. Detroit was once the crown jewel of the Midwest. In Two Years Before the Mast (1840) Dana calls San Francisco "a hill". Perhaps we are watching a new American migration.

DDJ:
The company I work for was just about to send 1/3 of our workforce to work from home when the Covid hit the fan.  Then we, even as a "essential" company, sent everyone to work from home in March.   I worked form home until July when I get assigned a new desk in the plant.  I went to Headquarters yesterday and there is maybe 10% in the office.  Most that are left are mechanical engineers.  Even the customer help desk people are working remotely.  So yes Covid is going to push companies to down size their offices and remote the staff.  That is going to play havoc on the city taxes.  The tax base is going to get spread out.  I was paying city taxes to the city HQ is in but if I were to work from home I should not be charged city tax (I am in a township with no income tax).  Bigger cities are going to see their tax income drop because the commuters are paying to the outlaying communities which are often less taxes.  If the city is not getting the income tax from the workers they are not going to offer incentives to the companies to come into or stay in town.  With no incentives the company moves.  Then the cycle gets bigger.



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