There”™s been a long-standing joke about IBM Corp. ”“ its initials stand for “I”™ve Been Moved.”
There have been many other takes, ranging from the clever to the crude. But the aforementioned joke stemmed from the tech giant”™s trend toward shifting U.S. jobs overseas. Its outsourcing practices attracted critics galore. Its downsizings in the 1990s and smaller layoffs in recent years were troubling to more than just those affected workers. Entire communities suffered.
And now, the entire state stands to benefit from the company”™s latest move.
IBM has joined with four other technology companies in a $4.4 billion venture to develop advanced computer chip technology in the Empire State. IBM alone is pumping in $3.6 billion.
The investment has the potential to create 2,500 high-paying, high-tech jobs here and some 1,900 construction jobs ”“ something the state urgently needs.
Gov. Andrew Cuomo announced the deal ”“ which also involves Intel, Samsung, Globalfoundries and Taiwan Semiconductor Manufacturing Co. ”“ at a conference in Albany last week that was part of his recently launched “New York Open for Business” campaign, which he said is intended to change the perception of the state.
“New York had a reputation of being anti-business ”¦ and the truth is, I believe there was a certain New York arrogance for a number of years.”
Whether arrogance or ignorance, the state has not been kind to its corporate residents. We”™ve lost some high-profile players and, with them, many high-paying jobs.
Smaller employers, the backbone of our economy, have been equally disenfranchised but many cannot afford to move. These employers have stayed and struggled along and must not be overlooked ”“ and overshadowed ”“ by the big deals.
Still, we”™re encouraged by the IBM venture. It”™s a start. Yet we keep in mind that a great deal more needs to be done for our small-business community.
The state also has been suffering from an ongoing loss of earning power. A recent report from the Empire Center for New York State Policy said some 70,600 New York residents moved to other parts of the U.S. in 2009, the most recent year covered in the study.
While this number is down 29 percent from the year before and nearly 50 percent from 2007 ”“ likely due to economic factors ”“ it still has a negative financial effect. These former residents”™ average incomes were 22 percent higher than those moving here.
Between 2000 and 2009, nearly 1.2 million taxpayers left our state. According to the report, “migrants from New York had incomes about $3.3 billion higher than migrants to New York in 2009.”
The report went on to say the state”™s annual net-income losses from 2000 through 2009 totaled some $37 billion. “Incomes change over time,” the authors stated, “so this does not necessarily mean New York was $37 billion worse off at the end of the period than it would have been if no moves had occurred during this period.”
True, but they do acknowledge “at the very least, the average incomes of migrating taxpayers reflect New York”™s ongoing loss of earning power ”“ and, in many cases, job skills ”“ to other states.”
When you do the math, it equates to more troubling times for the state.
So we need those high-paying, high-tech jobs, otherwise for many New York taxpayers, it will be IBM ”“ I”™ll Be Migrating.
