Toyota, Moving Northward

When Toyota decided to build a new assembly plant in Canada's Ontario, despite being wooed by many American states, they opted for a location with a publicly funded health care scheme as well as high-quality public education. The idea that big government can actually help attract global business is a commonplace in Canada, but is anathema to most American decision makers. If more businesses like Toyota choose to locate their plants in welfare states where labor quality is high and costs to the employer are low, US taxpayers will have to assume more of the costs of employees with few or no benefits. Perhaps international competition is revealing that making health care a universal good is not only beneficial for society, but an increasingly attractive incentive for companies. – YaleGlobal

Toyota, Moving Northward

Paul Krugman
Monday, July 25, 2005

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