a “singular” view of Vermont

December 27th, 2007
Opinion, Vermont, economics, taxes

Vermont is a “no growth” state. That’s not a “singular” view, but simply fact. The census report noted by Geoffrey Norman may be inaccurate and may be incorrect, but a little common sense can supply some validity to the notion.

For example, as a Christmas present to the greater Burlington area, the German company Quimonda announced it would be closing its facility in Williston eliminating 125 jobs. A few of those jobs may be consolidated with the company’s Cary, North Carolina facility. Quimonda is an “ideal” Vermont high tech company (even though “profits” might leave the state and the country) – something we can all agree on since it’s not a big box store and appears fairly “green”.

Now, I’ll admit I don’t have the details, but if in the face of rapidly changing economic conditions, a company (and this is true for individuals as well) has to make changes to survive financially, it will make those decisions based on reasoning – not emotion. The big three auto makers recently made similar cut backs. They have to - to survive. So as the hypothetical CFO of Quimonda (who probably lives in Germany), I take a hard look at the numbers and have to decide… should I consolidate my facilities in the states from North Carolina to Vermont? or Vermont to North Carolina? If you spent any time following economic news – this is a no brainer. And that CFO in Germany could give two sh— about the quality of life in Vermont!

So Mr. Cross, that simply is the hard reality of life. Compare the economic advantages of North Carolina to Vermont, and put yourself in the CFO’s shoes. I don’t think Vermont Tiger “scared” that CFO one bit. Vermonters need to understand this. Vermont is a lovely place, but it’s far cheaper to spend a two week vacation here to enjoy all of its wonders, and then travel back to reality to make a real living.

So, with the loss of 75 to 125 jobs, that will probably remove those 476 people the report seems to feel we added to Vermont this year.

With increasing fuel prices and a decreasing tax base, where to we get the extra 5% needed to cover those costs just to run our schools? Apparently Quimonda has no intention of helping us out here.

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