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Wednesday, October 07, 2009

Dell closing Winston-Salem planet

The state of North Carolina and local governments ponied-up $208 million in tax incentives and other deals in order to entice Dell to open up its huge manufacturing plant in Winston-Salem. The place has only been in operation since 2005 and employs nearly a thousand people.

Starting next month and on through the holidays, all of 'em are gonna be looking for new jobs.

Dell announced today that its Winston-Salem factory will be shut down, even though this heinously violates the agreements between Dell and the governments here when Dell first arrived.

How the hell did this happen?

And I hate to say "I told you so" buuuuuuttt... this is so way part of why I despise "economic incentive" deals that local governments use to lure potential businesses to their area. It's not only ethically wrong, but there is no guarantee for success. If governments want to bolster the economy, they should slash taxes across the board for everyone: both individuals and corporate. That is why our manufacturing economy keeps relocating overseas and why a lot of companies have become loath to set down new roots in this country.

But, all of this is academic. Tonight, 905 people in this area are realizing that they will no longer have a job come Christmas.

If any of them are reading this: y'all are in our thoughts and prayers.


AfterShock said...

Just one more reason NOT to buy Dell...they have been selling an inferior product for years now and it looks like it is catching up with them. It's unfortunate that is has to affect people here in our state and I hope and pray that those fine folks will find new jobs soon. Maybe they can look to Apple when/if they open a new plant in NC...