Controversial Call
By Aidan Nordquist
When North Carolina Governor, Pat McCrory, implemented and signed the Public Facilities Privacy and Security Act (House Bill 2) that outlawed transgender individuals to use the a public restroom that they identify themselves as, he had no clue about the future economic and social outrage that would ensue. The bathroom bill is still in full-effect with schools and businesses statewide with no signs of changing. This controversial law has sparked the heated debate of how transgenders and gays are viewed and treated. Clearly, the rest of the country isn’t supportive of House Bill 2. Although, other states have legislated laws requiring transgenders to use restrooms assigned to their gender given at birth, however, no bill had made it past committee review processes. The North Carolina state governmental system has severely messed up with the creation of HB2, ultimately causing them to lose millions of dollars in potential business/event profit and respect from the LGBT community.
The substantially innovative city of Charlotte occupies nearly 730,000 and they are struggling to progress financially with the passing of HB2. Charlotte is currently the home of 14 Fortune 500 companies. They are highlighted by companies such as Bank of America, Hanes Inc., and Lowe’s. Although they are financially stable, large cities are always looking to expand and add corporate offices. These expansions generate the city money and create thousands of new jobs, creating a positive externality amongst residents. However, through the passing of HB2, some companies have taken their business elsewhere. According to the Fiscal Times and the Charlotte Observer, “North Carolina lost additional revenue when PayPal, Deutsche Bank, and other companies canceled expansions in the state, costing the state more than 1,000 jobs and at least $100 million in economic activity.” (Abadi) Not only is the city of Charlotte losing money--people cannot get much needed jobs to support their own families. The trade-off of passing this bill has caused for companies to withdraw plans to move into the state, hurting them physically and monetarily. While, Charlotte possesses the capabilities to produce in mass quantities, the resources and availability are becoming a victim of underutilization due to slow paced business. However, it doesn’t end there, as the Fiscal Times and Wired Newspaper also reported, “Pullouts and boycotts from other companies, including the film studio Lionsgate, constitute another $88 million or so.” (Abadi) Companies understand the negative impact and views they will get if they decide to overlook the bill passed. They determined it was in their best interest to remain out of North Carolina until the law was restructured.
Not only has the state received an ample amount of criticism, it has also led to cancellations of the NBA All-Star Weekend, potential Super Bowl bids, and NCAA Men’s Basketball First and Second Rounds of March Madness. While businesses are one thing, sporting events and entertainment are limited-time experiences that generate quick cash through tickets, hotel reservations, and restaurants. And still, the cancellations keep coming in. According to the Fiscal Times, “The Atlantic Coast Conference’s announcement Wednesday to relocate all neutral-site championships from North Carolina was yet another hit to the state over its controversial bathroom law.” (Wells) For many basketball fans, the ACC is known as one of the most competitive and entertaining leagues in the country. The conference was also scheduled to host its football conference championship title game in Raleigh, NC, where has also been moved. In total, through all these premier events, the state is expected to lose between $125 million and $175 million in possible revenue. The opportunity cost of implementing this bill has come with the major deficits for all businesses involved in the entertainment and food industries. Nonetheless, the lone wolf remaining in North Carolina is the PGA Tour Event at Quail Hollow in 2017. Although, they oppose the bill, they understand the time and effort it takes to move an event that is less than a year away. Sporting events will never be the same in North Carolina, the few that continue to go on will go on with seldom support.
The North Carolina “bathroom bill” is in place for all of the wrong reasons. While, they may be “taking a stand” against what some house members and Governor believe in, it could potentially cost the state billions. While the number is currently sitting at $400 million in potential revenue lost according to economist Patrick Rishe, this is only the beginning. The state will start to lose the support of residents looking to attend sporting events or hoping for a new business opportunity to pop up in the state. With this bill, those things won’t be able to happen. Furthermore, something even more devastating could possibly hit the state. The Justice Department has an ongoing lawsuit against the state which could put them at risk to lose $5 billion a year in federal funding for public schools and universities. The North Carolina judicial system needs to reverse this law immediately because of the burdens it will impose on residents and the future of the state in general. Until the bill is repealed, North Carolina will continue to be outcasted from selections of events and remain distant from the LGBT community.
Works Cited
Abadi, Mark. "North Carolina's 'Bathroom Law' Has Cost the State Nearly $400 Million." The Fiscal Times. Business Insider, n.d. Web. 16 Oct. 2016.
Gordon, Michael. "Understanding HB2: North Carolina's Newest Law Solidifies State's Role in Defining Discrimination."Charlotteobserver. N.p., n.d. Web. 16 Oct. 2016.
Wells, Nicholas. "Transgender Bathroom Law Is Costing North Carolina Millions in Lost Sports Tourism." The Fiscal Times. CNBC, n.d. Web. 16 Oct. 2016.
I love that you took a very controversial subject and actually went into details about other things than human rights only with it. It was surprising to learn how much money they are losing. I personally thought it would be less. But I do have to say you are wrong where you say most of the country disapproves of it. Because in fact almost all southern states want the same thing and are trying to get it to happen. Besides that, it was a great post to read and see who else is pulling out of the state besides the few big things that I knew about. And I still will be watching this issue myself since it is such a heated and interesting one.
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ReplyDeleteWhile HB2 is obviously derived from angry, old, white politicians that have no tact, and is disappointing act to carry out, it seems that the private sector withdrawal seen in the state is an example of political corrections gone haywire. In a time period and a country where PC is like that of a law, these companies are not only drawing out of North Carolina because they're offended, but also to gain publicity for "doing the right thing". If that's not the case, these are overreactions that are unneeded and unnecessary. The big businesses are hurting the wrong people in this situation: the people that didn't pass the law.
ReplyDeleteIn your last paragraph, you state that they companies at hand, while they may be "taking a stand", they're costing their state millions. While that's true, you seem to be taking a tone of disbelief that they could hurt their home state. Unfortunately, these Corporations couldn't care less about the financial state of the local government. This scenario is only a game in which the only goal is to better oneself.
I really liked how you took such a real and controversial topic and turned it into an in-depth analysis on the effects it's having on the city. They lost out on tons of revenue by losing the all-star game and unless things change they're going to continue to lose out on opportunities such as this one.
ReplyDeleteI for one am glad to see that such harmful laws do result in consequences that can be seen and measured. While the "angry, old, white politicians" as a previous commenter termed them might find the cost of public outrage low enough to leave the bill in place, the monetary loses to the state will hopefully be a much higher cost in their eyes. (Also just as a side note the terms "gays" or "transgenders" typically aren't considered respectful, and using gay people, LGBTQ people, or transgender people instead would be appreciated by the people you are describing)
ReplyDeleteThis a real thing now a days and I like how you applied it so well to us. People are changing there lives now a days over things like these and it is such a sensitive topic that you did really well I also like how you applied major events that apply to this and have a affect on what you are talking about really good job.
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