In 1945, at the end of World War 2, Massachusetts was the state in which most high quality leather shoes were produced. The industrial revolution
began in Lowell, Massachusetts and the state was the largest producer of cotton cloth. Cotton, the real miracle fabric. Some manufacturing had
spilled over into Rhode Island and Connecticut.
Erie, Pennsylvania was the home of General Electric Company’s single manufacturing plant producing all its home appliances. And making a lot of
appliances for sale under the Kenmore name at Sears stores. Then the largest appliances maker and the largest retail store.
Massachusetts and Pennsylvania were leading states in America, in terms of per capita income, in the quality of life available in those states and in
the infrastructure such as libraries, hospitals, museums, schools of higher learning, and a population that was high in rank for its general
educational achievement. The accouterments of civilization.
South Carolina, Tennessee and Kentucky, OTOH, were backward when compared to the mid-Atlantic and Northeast states. Their roads were not as extensive,
and not as good. Their schools were very much “basic” to be generous. Library shelves were half full and many of the books on hand were ragged and
out-dated. Hospitals were nowhere near cutting edge. Wages were low, taxes were low because the population was too poor to pay more, and the states
were a quarter century behind the “progressive” states in any way that was measurable.
Slowly at first, but then in a rush, the cotton mills moved out of Mass and headed to South Carolina. The climate is more temperate in SC, but that is
not why Stevens Mills moved south. Southern politicians found they could get public support for offering incentives to northern industries to move
south. Land was cheaper. And, it would all be new. New factories built to the latest production favoring designs. Machinery could be replaced with
new re-engineered machines. It might even be cheaper to buy new than to crate and ship old machinery.
And Good Gawd A’mighty, those southerners could not spell UNION and were opposed to the idea anyway. It was as if J.P. Stevens had died and gone
straight to heaven! He was being paid not to move anything! Leave all the old worn out stuff behind. Leave all those union workers who gripe every
time he speeds up the production line, leave that all behind and move to SC, where they will build for him a new plant, equip it with new machinery,
and furnished him a work force that prefers 10 hour days to any weak-kneed 8 hours stuff up north! Hey, we can’t read but we’re real men down
here!
Mr Stevens - and all the 100s of other northern companies - got a new factory, lower taxes or no taxes, cheap and complaint labor that had a hatred of
unions peached to them from every pulpit in the south. Barely deserving of the name, workers compensation insurance. It was a bonanza for the Rich
and Famous. When you are giving away so much money that belongs to someone else, it is tempting to take some for yourself. We never looked into that
because all the state’s law enforcers were working for the same goal, to get those northern plants down south. And what the heck, there was plenty
of money to go around!
This same process took place with the shoe industry which moved much of it to Tennessee. For the same reasons. With the same results.
I lived in Louisville when GE made its move to Ky. It was called GE Appliance Park and it was the largest employer by far in Ky. 32,000 workers. In 6
huge bbuildings. Ranges in one, washers and dryers in another. Fridges in yet another. HVAC in still another. Appliance Park was the 4th largest
“city” in Ky. The post-war housing boom was running full bore. Appliance Park ran 24/7, six days a week.
Appliance Park was contiguous with the City of Louisville on 2 sides. The City moved to annex the factory. GE went to Frankfort, the state capital,
and “convinced” the legislators to amend the annexation statutes to require a city to annex as many people as workers in any plant. Louisville
never got that many people to consent to annexation. The plant which enjoyed all the benefits of Louisville, had its own Louisville zip code, never
paid taxes to Louisville.
Jack welch made millions in his shrewd handling of GE and is lauded around the MSNBC and History Channel as exemplary of America’s best and
brightest!
My point is business takes, takes and takes more. It never gives back.
[edit on 4/1/2007 by donwhite]


