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Between 2002 and 2006, New Jersey has seen a mass exodus of inhabitants estimated at 231,565 residents. The question is—why?
Last month the Belgian brew master InBev announced that they were purchasing Anheuser-Busch—America’s, “King of Beers.” This has caused many at the company’s breweries, specifically, its second oldest, located in Newark, to fear for their jobs. There has been no official word but, I imagine there are quite a few jitters for those at the Newark Brewery who are trying to support their families. What will happen to the company's oldest branch brewery? Will the neon eagle that soars atop the plant finally fade like so many before? And more importantly what will become of the working middle class that flood the factory's facade every morning and night to earn a respectable and truly decent living?
The state of New Jersey has been at the forefront of the manufacturing industry for more than two centuries. During the Civil War, Union army Civil War uniforms were manufactured in Bloomfield, Newark monopolized 90% of the country’s leather commerce. Even today, manufacturing makes up 12% of New Jersey's entire gross state product and offers 11% of the job market to Jersey residents.
But manufacturing in the State is suffering. Newark breweries, which once included names like Eagle, Ballantine, Pabst, Hensler, and Krueger, have dwindled. At its height, Newark was indeed the brewery capital of the world with a total of 14.
Today, the only one that remains is Anheiser-Busch, a plant whose future is now in doubt.
Why has there been such a migration from Manufacturing? Well one reason certainly is the outsourcing of jobs to other countries where lax regulations makes it cheaper. But perhaps more importantly to New Jersey is the fact that it has become so expensive to do business here. Not only our we losing jobs to other countries but, we’re losing them to other states as well.
New Jersey has not only one of the highest corporate tax rates in the union but also in the world and this is what has caused many companies to leave the State. By restructuring this tax, New Jersey may once again become the first choice for businesses to operate.
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