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re: Breakdown of how Alabama became so much richer than Canada

Posted on 4/10/26 at 12:47 pm to
Posted by Cosmo
glassman's guest house
Member since Oct 2003
131547 posts
Posted on 4/10/26 at 12:47 pm to
quote:

I wonder if G Wagons would sell as well in the suburbs if everyone knew they were all made in Alabama, not Germany


G wagons are made in europe
Posted by Chucktown_Badger
The banks of the Ashley River
Member since May 2013
37022 posts
Posted on 4/10/26 at 12:50 pm to
quote:

When Mercedes was announced people screamed and howled about the size of the incentives package it was given. It has paid for itself many, many times over.


Automotive has also become a huge industry in South Carolina as well. We've got a Mercedes plant (sprinter vans), BMW, and a huge Volvo plant. Scout is also building a plant for 2027. Clemson has a Bachelor of Automotive Engineering degree they now offer.
This post was edited on 4/10/26 at 12:51 pm
Posted by Marco Esquandolas
Member since Jul 2013
11821 posts
Posted on 4/10/26 at 1:25 pm to
didn’t see much Auburn footage in that video…

Posted by Jmcc64
alabama
Member since Apr 2021
2180 posts
Posted on 4/10/26 at 1:28 pm to
quote:

but does it mention the vast amount of federal tax dollars poured into Alabama from states like California and New York


It does.
Posted by AlumneyeJ93
Member since Apr 2022
958 posts
Posted on 4/10/26 at 1:36 pm to
Clemson has a separate automotive engineering research campus in Greenville.

Lot of manufacturing activity in the southeast.

Posted by fightin tigers
Downtown Prairieville
Member since Mar 2008
78368 posts
Posted on 4/10/26 at 1:42 pm to
quote:

It does.


Good to see they included it. Shows American socialism in practice.
Posted by KingOfTheWorld
South of heaven, west of hell
Member since Oct 2018
7719 posts
Posted on 4/10/26 at 1:43 pm to
Baldwin County AL is bursting at the seams. We have a home in Foley, AL south end off Co Rd 10. It’s insane. Selling is definitely in our vocabulary right now.
Posted by chalmetteowl
Chalmette
Member since Jan 2008
54782 posts
Posted on 4/10/26 at 2:05 pm to
quote:

Canada increased taxes, has been declining in productivity and opened the immigration flood gates to low skilled workers.


Who cares about the numbers, they’re morally superior and that’s what matters
Posted by TheIndulger
Member since Sep 2011
19409 posts
Posted on 4/10/26 at 2:07 pm to
quote:

Speaking as someone who lives in the fastest growing county in the state......it ain't all sunshine and rainbows. People are every damn where now, more pop up constantly out of every ditch and pothole around. T


Well yeah…that’s called growth
Posted by northshorebamaman
Mackinac Island
Member since Jul 2009
38338 posts
Posted on 4/10/26 at 2:26 pm to
quote:

this keeps coming out that Alabama GDP is higher than Canada. It is a useless metric to view in a vacuum.

Correct. You can’t compare a small part of a larger country, especially one receiving net support from it, to a standalone country and treat the result as meaningful.

One is backed by federal spending, transfer payments, and a unified domestic market with shared monetary policy. The other has to manage its own currency, trade, fiscal policy, and national services.
This post was edited on 4/10/26 at 2:29 pm
Posted by AbuTheMonkey
Chicago, IL
Member since May 2014
8641 posts
Posted on 4/10/26 at 2:34 pm to
quote:

quote:
Breakdown of how Alabama became so much richer than Canada


Not going to watch this version of the same retread story, but does it mention the vast amount of federal tax dollars poured into Alabama from states like California and New York?

TLDW: this keeps coming out that Alabama GDP is higher than Canada. It is a useless metric to view in a vacuum.

same topic 6 weeks ago being pushed on TD


Net inflows account for about 10 - 15% of Alabama's GDP. That's not immaterial but certainly doesn't explain away all the difference.

There has been a lot of back and forth on the internet on this, mostly from Canadians and / or Europeans who say "NO WAY!" but I'll say this: I am surprised by how much innovation and economic productivity Alabama has. The Huntsville area (aerospace and defense), the Birmingham area (healthcare and manufacturing), and the Gulf Coast (the port, logistics, aerospace, real estate / tourism) all have major, world class-level economic drivers going for them, and that's where like 2/3 - 3/4 of the state's population lives. The state certainly has its problems, especially in the Black Belt, but I've lived all over the country and the world and have no problem believing that large parts of Alabama are as wealthy and have a high quality of life as the richest countries in the world outside the U.S.
Posted by ronricks
Member since Mar 2021
12162 posts
Posted on 4/10/26 at 2:36 pm to
quote:

opened the immigration flood gates to low skilled workers


We’ve done the same thing in America. Most of them are on entitlements or being supported by religious NGO’s. They aren’t working.
Posted by northshorebamaman
Mackinac Island
Member since Jul 2009
38338 posts
Posted on 4/10/26 at 2:37 pm to
quote:

Net inflows account for about 10 - 15% of Alabama's GDP. That's not immaterial but certainly doesn't explain away all the difference.

There has been a lot of back and forth on the internet on this, mostly from Canadians and / or Europeans who say "NO WAY!" but I'll say this: I am surprised by how much innovation and economic productivity Alabama has. The Huntsville area (aerospace and defense), the Birmingham area (healthcare and manufacturing), and the Gulf Coast (the port, logistics, aerospace, real estate / tourism) all have major, world class-level economic drivers going for them, and that's where like 2/3 - 3/4 of the state's population lives.
If 10–15% of GDP is coming from net inflows, that’s a structural advantage baked into the number before you even start comparing. That alone is enough to distort a comparison.

Then add: access to a unified U.S. market, federal defense and infrastructure spending, and no responsibility for running a currency or national system. Canada carries those burdens itself.

Look at how many of your own examples only work because Alabama is tied into the larger U.S. system.

The manufacturing base depends on access to a national market and federal infrastructure. Defense spending is federal money. Transfers and subsidies are federal. Even the stability behind investment is coming from U.S. monetary and fiscal policy.

You're pointing to outputs that are downstream of that integration, then treating them like they’re self-contained. They’re not. That’s exactly why the comparison is useless.
This post was edited on 4/10/26 at 3:10 pm
Posted by northshorebamaman
Mackinac Island
Member since Jul 2009
38338 posts
Posted on 4/10/26 at 2:45 pm to
If you want a more accurate comparison, you need to match the level, adjust the inputs, and stop relying on averages.

Compare state to province or country to country, not across levels. Strip out federal transfers for the state so you’re not counting outside support. Use median, cost-of-living–adjusted measures instead of GDP per capita, and pair output with basic outcomes.

Anything else is useless.
Posted by HueyLongJr
Member since Oct 2007
1071 posts
Posted on 4/10/26 at 3:02 pm to
Alabama never had Fidelito as governor.
Posted by Tchefuncte Tiger
Bat'n Rudge
Member since Oct 2004
63405 posts
Posted on 4/10/26 at 4:10 pm to
quote:

It is stunning to see how quickly they are ascending to positions of power.


It's sickening, not stunning.
Posted by BigD43
Member since Jun 2016
1433 posts
Posted on 4/10/26 at 4:27 pm to
quote:

When Mercedes was announced people screamed and howled about the size of the incentives package it was given. It has paid for itself many, many times over.



Remember when AOC didnt want Amazon move to NY state because she wanted to repurpose the roughly $3 billion in state and city tax incentives the state was offering?

Repurpose the TAX incentives. How much did NY make in taxes after Amazon went elsewhere?
Posted by crazy4lsu
Member since May 2005
39820 posts
Posted on 4/10/26 at 4:28 pm to
quote:

You're pointing to outputs that are downstream of that integration, then treating them like they’re self-contained. They’re not. That’s exactly why the comparison is useless.


That is a good point and it shouldn't be ignored that Huntsville's growth has been directly tied to the aerospace industry and Redstone Arsenal. That isn't to mention the other military installations in the state which promise direct federal dollars as well. It seems like the size and relative importance of those military installations promises federal dollars even during periods where overall spending might be cut. That's a pretty good strategy for a state which doesn't have the same degree of natural resources as other areas of the country.
Posted by Penrod
Member since Jan 2011
55464 posts
Posted on 4/10/26 at 5:02 pm to
quote:

this keeps coming out that Alabama GDP is higher than Canada. It is a useless metric to view in a vacuum.

It is a very useful metric, and would be damning of Canada if it was true, which it obviously isn’t.
Posted by RohanGonzales
Pronoun: Whatever
Member since Apr 2024
10615 posts
Posted on 4/10/26 at 5:17 pm to
quote:

but does it mention the vast amount of federal tax dollars poured into Alabama from states like California and New York?




I thought NY and CA people were sooooooooooo much smarter.

Do you know what Alabama does not have?

a $135 BILLION dollar train to nowhere

Do you know what the federal transfers to Alabama totalled in 2022?

Approximately $20.2 billion
In fiscal year 2022, Alabama received approximately $20.2 billion in federal transfers, which accounted for 1.6% of all federal government transfers to states.

So California has spent $135 billion on a fricking train with nothing functioning yet, and that is worth between 6 to 7 YEARS worth of the transfers to Alabama.

More money should be transferred to Alabama so it will be less likely to be wasted.

Do you want to get into the fraud in California?



Finally, for the 5,000th time I have asked this question, if red states are so "expensive" for blue states to be associated with, why don't the blue states kick out the red states?
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