On March 13, the local CTV newscast commenced a series looking at the regional economy. To its discredit, it repeats the city’s worst nonfactual urban myth.
Authoritatively, reporter Michelle Maluske claimed, “… gone are the days when our region would welcome a new employer with job openings for thousands of people.”
She might be forgiven for such flimsy reporting if only because such an unfounded claim is happily propagated by the powers that be. It is an illusion to camouflage their lack of ability on the jobs front.
Maluske goes on to assert economies now revolve around small businesses. Most have few employees.
Journalist John Tamny of Forbes Magazine, in its October 6, 2013 issue, opined it, “… would probably be wise for those who’ve drunk the small business Kool-Aid to curb their enthusiasm that extends to the assertion that they’re our economic backbone … in most instances they’re merely an effect of the big businesses around which they cluster.”
Small businesses are not job generators equal to large factories. Their existence would be doubtful without a nearby big business.
To document this, Tamny quotes Enrico Moretti, author of the book The New Geography of Jobs. According to the economist, “… big businesses are the principal drivers of small business job creation.”
Of course what CTV dishes out often needs to be taken with a considerable truckload of Windsor mined salt. The reason employers are not settling locally is not because the well is dry. New large enterprises are locating everywhere else but in Windsor.
Only two weeks ago, Reuters news service told the story of South Korea’s LG Electronics announcing it will spend a quarter of a Billion dollars to set up an appliance factory in Clarksville, TN. The manufacturer’s rival, Samsung Electronics, is also considering a North American white goods factory.
Was Windsor even considered? If history is any guide, probably not.
Less than a year ago, Windsor lost out to Welland for a new General Electric engine plant. The loss was an embarrassment.
Welland’s economic development office has one professional on staff compared to the eighteen running around inside the Windsor-Essex Economic Development Corporation operation. Unfortunately, Windsor, reported the media at the time, was quickly eliminated from contention.
CTV is wrong about the days of new factories being over. The real story is that the regional economic development outfit is not up to the task of finding available jobs creating companies needing new locations.
That is a scandal.
Unfortunately, as a disservice to its viewers, it is almost certain this situation will never be covered by the broadcaster.