Government Payouts Not Enough to Prevent Further Job Losses in North Carolina

Closing of Dell Plant Latest Blow to State’s Economy

Raleigh, N.C. – Dell announced today that it is closing its manufacturing plant in Winston-Salem and will lay off 905 workers. The plant was opened in 2005; Dell selected North Carolina to locate its facility in part because the General Assembly passed a $305 million incentives package specifically for Dell.

Senate Republican Leader Phil Berger (R-Rockingham) made the following statement:

“This announcement is further evidence that we have not yet reached bottom in the current recession. As the ranks of the unemployed continue to grow, it is important that state government agencies move quickly and take all appropriate steps for those who have lost their jobs. It is also important that we take a serious look at and reconsider the various incentives programs which are now North Carolina’s dominant economic development philosophy and program. North Carolina will not be a national leader in job creation and retention through government officials thinking they can pick winners from losers in a dynamic free market economy. The sooner state government moves to reduce the overall tax and regulatory burden on our families and small businesses and concentrates state resources on core government functions like education, transportation and public safety, the sooner North Carolina will be in a position to see a real turnaround in the state’s economy. Unfortunately, in the recently completed legislative session Governor Perdue and her Democratic allies in the General Assembly did exactly the opposite and increased incentives programs, raised taxes, and cut classroom education funding.”

Tweet