Wednesday, March 5, 2008

Expensive empty highways

An interesting article in a recent edition of Hola Noticias (February 26, 2008) notes that Latino immigrants are buying fewer cars these days. One auto dealer in Charlotte states that sales to Latinos are down 50%. Another Toyota sales rep laments that there used to Latino clients every day. Now days go by before he sees a potential customer and then it is usually someone trying to sell a car.

So what is happening? Recent laws in North Carolina have made it more difficult for immigrants to obtain a driver's license. The result is that immigrants with only a Tax ID number no longer qualify to buy and register a vehicle. Loan agencies and banks, in turn, are also requiring more identification and charging higher rates. Combine this with loss of wages due to a slowdown in the construction industry and you get trouble for car dealerships.

At the same time, North Carolina is in the process of allocating billions of dollars for new and refurbished roads. The bigger question is: Who exactly is going to be traveling on these future highways? And where will we get the young workers that our economy needs to compete with Germany, India, and China? Look no farther than the folks trading in their NC license plates and heading to Kentucky.

Colin Austin

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