General Electric Moves to Boston

Student’s Name
Professor’s Name
Course Number
Date
General Electric Move to Boston
General Electric announced it would relocate its headquarters from Fairfield to Boston, setting up a discussion on whether the decision was due to political failure by Connecticut or a practical move by one of the largest world companies. The corporation’s chief executive stated that Boston was selected due to multiple reasons such as the long-term costs, business ecosystem, world connection, and talent, to mention a few. Boston was a perfect location since the company had rebranded as a tech company. Massachusetts is a more supportive state and local administration than Connecticut. The state has its financial issues, and the company’s main concern regarding the relocation lies in the long-term financial stability of Connecticut. Connecticut has one of the most significant debt burdens of any state, owing more than $22 billion. Also, the state has additional threats on soft debts with more than $47 billion in retirement benefits not settled (Phaneuf et al.). In 2015, Connecticut was rated as the worst state for failing to fund pension liabilities, while Massachusetts was ranked 11th.
Additionally, the current annual contribution of Connecticut to the pension fund could increase by 2032. The unpredictability in the state’s financial status and the uncertainty of moving from deficit to tax increase make it hard for a company to plan its operations. Boston has 55 colleges and universities, thus making it a dynamic and innovative city. Massachusetts invests more in research and development than other areas across the globe, and Boston has a diverse and technologically-eloquent workforce ready to solve global challenges. General Electric stipulated that the relocation would have no economic effects on the company since the costs were handled by the state and city incentives (Phaneuf et al.). Also, the company sold its headquarters at Fairfield and other offices in new york city.
Massachusetts offered up to $120 million in state grants and other incentives, and the city offered property tax savings of approximately $25 million. Also, the state and city offered to help General Electric relocate its headquarters and employees. They promised vital attention from the critical personnel in the governor and mayor’s office, identifying interim offices and establishing a movable office for General Electric employees moving to Massachusetts. The company also got entry to the airport and aircraft parking. The company spent the money to improve public infrastructure, such as site preparation, improving buildings, and acquiring additional facilities. Also, the company was entitled to $1 million in workforce training grants and $5 million to promote relations between the enterprise, research bodies, and universities (Scott). Boston was willing and excited to operate creatively and attract more companies with high-paying jobs in the city. Massachusetts is well known for high taxes, but a...