After factories are closed and demolished, the value of the property goes down, this means less tax dollars brought in through school and property taxes. With less property and school taxes brought in from businesses, the tax burden is being shifted to homeowners. Do you ever wonder why your property taxes are so high? Maybe its related to the businesses shutting down and moving to china. Someone has to pay for the schools, since John Doe and company laid off a few hundred workers and moved to china, “someone” has to pickup the bill.
Trucks bringing supplies to factories buy fuel and other items at local stores.
When the news says that a factory is closing, the people do not realize the ripple effect that has through the community.
In Orange, Port Arthur and Beaumont Texas, there were several shipyards that shutdown in the early 1980s. Somewhere around 10,000 workers lost their jobs. Close to 5,000 of those people worked at one company.
30 years later, the area has yet to fully recover. In the early 1980s young people (early 20s) could go to work in a shipyard and make $13 and hour. These days that same age bracket works at best buy or wal-mart for around minimum wage. How is someone making barely over minimum wage supposed to buy a home, or buy a car, or raise a family?
Figure up how much money has been lost in the local economy over the past 30 years by going from $13, $14,,, $16 an hour to $8 an hour.