Some Kentucky editorialists greeted the announcement of 1,500 new full-time jobs by
Amazon.com with complaints that these will not be high-paying or high-skilled positions.
Others reacted with yawns at the prospect of 1,000 new jobs in Campbellsville and 500 in
Lexington.
All of society yearns for high-paying jobs for every American. But it would be
unrealistic to turn our backs on lower tier jobs while awaiting those in high-tech. There
is a place in the economic scheme of things for lower tier jobs for people with
appropriate education and job skills.
Not everyone can attain a job as a rocket scientist or a neurosurgeon. Aptitude,
ability, education and training determine who qualifies for those jobs with high-level
skills and high incomes. What is attainable is public policy that provides strong
educational training opportunities so that all citizens can reach their greatest potential
in the job world.
To reject the creation of new lower skill, lower paying jobs fails to recognize
economic realities. In Kentuckys quest for upper echelon, it must at the same time
allow its less educated and less trained citizens a chance to work.
Americas economy is humming and the unemployment rate is 3.1 percent for adults
over 25. However, the rate is 14.3 percent for teenagers who generally occupy the lower
job sector. Job snobs in the bureaucracy and the media who dismiss the worth of lower
level jobs operate outside the bounds of real life.
These companies do not come to Kentucky for our climate -- they come because the jobs
involved require little prior knowledge, unique skills or creative thinking. A significant
portion of our workforce is without advanced education and skills. These jobs cannot
demand higher levels of pay but they are meaningful jobs, needed jobs and opportunities
for people with matching skills to earn a living for themselves and their families.
Amazon.com is not a pariah, so bring on its jobs. Lets simultaneously pursue
those "dream jobs" for Kentuckians. This quest will be more successful as the
University of Kentucky and the University of Louisville become more important national
research institutions.
Amazon.com has applied for tax incentives. State economic incentives -- tax dollars
used to induce business and industry to located in Kentucky -- are good economic
development tools when used wisely. Too often, these incentives are granted without
holding recipient companies responsible for long-term jobs.
Certain obligations should be required of any business or industry receiving tax
incentives. Otherwise, companies play "musical chairs" by moving from state to
state, seeking even better tax breaks. The Campbellsville site chosen by Amazon.com is the
former location of the Fruit of the Loom Corporation. Fruit of the Loom, a recipient of
Kentuckys tax incentives, chose Campbellsville in part because of cheap labor. It
moved out of this country for yet cheaper labor.
West Virginia is presently experiencing a significant loss of jobs because Rite Aid and
Kroger distribution centers are leaving the state for other states with more and better
tax incentives. These companies were paid by West Virginia taxpayers to locate their
businesses there. Bidding competition between states for new jobs is destructive to their
economies if the businesses are not held to any obligation to repay incentives if they
vacate the state and eliminate the jobs.
Bidding wars do not create new jobs -- they merely move existing jobs while businesses
play one states "freebies" against the taxpayers of another. States would
do better to concentrate economic development incentive funds on providing infrastructure
assistance such as roads and utilities, as well as job training and skills improvement,
rather than giving away tax funds to employers. Infrastructure, job training and skills
improvement programs are assets that remain in the community, even if the business turns
fickle and leaves. Monetary incentives move on with the departing company, an additional
loss to the community.
Make way for Amazon.com. We want you, we need you and we welcome you.