In the post-Roe v. Wade, states weigh economic costs of abortion bans

In addition to the ethical debate over state abortion bans or restrictions, critics say there is an economic argument against them at a time of labor shortages.

“A diverse workforce is essential to your company’s success, and you’re trying to recruit women to work for your company,” said Anna Eskamani, Florida State Representative. “And they’re looking at the full picture of health outcomes and access to reproductive health care.”

Eskamani, a Democrat, had a seat on the sidelines for a different culture war raging in her Orlando district: the clash between Disney and Florida Governor Ron DeSantis to the state Parents’ Rights in Education Law restricts teaching on topics of sexual orientation and gender identity, which critics call the “No Gay Talk” law.

After Disney CEO Bob Chapek – under pressure from employees – denounce the law and vowed to work to repeal it, DeSantis pushed a law through the state legislature to Disney’s special tax zone revoked at its Florida theme park.

“This state is run by the best interests of the people in the state, not by any awakened corporation,” DeSantis, a Republican, said at the bill signing ceremony on April 22. .

Now, Disney has announced it will delay the move of 2,000 employees in the company’s Imagineering division from California to a new campus in Lake Nona until 2026. The move is expected to begin in this year. The company will collect $578 million in state taxes for the move. Under Florida law, a company cannot collect credits until jobs are created.

Disney did not respond to an email from CNBC, but a spokesperson told Orlando Sentinel that the delay had nothing to do with the dispute with DeSantis.

Eskamani doesn’t believe it. She calls it Disney’s “subtle” pushback and says this is what happens when politicians wage a culture war.

“It has an economic ripple effect when companies trying to attract top talent realize they can’t do it in a situation that doesn’t welcome a diverse population,” she said.

DeSantis deputy press secretary Bryan Griffin said the company hasn’t contacted the governor’s office about the delay, so he won’t speculate on the reasons. But he said the state is doing well regardless.

“Today, our state leads the nation in both domestic and wealth migration,” Griffin said in an email. “Tourism and entertainment are key sectors of Florida’s diverse economy, and business is booming.”

And, Griffin notes, Disney isn’t the only game in town.

“Disney is an important employer in central Florida, with tens of thousands of employees in the area, but it is not the only major company or industry in Florida,” he said.

In Current Leadership Projecta group of business leaders and academics pushing companies to address threats to democracy, CEO and co-founder Daniella Ballou-Aares is concerned that the DeSantis-Disney dispute in Florida and the ongoing battle between several states and corporations over abortion, presenting a growing problem. More common in emerging markets than it is in this country: the risk of sanctions from an unstable government.

“Fortunately, the US is seen as a very low political risk environment where you don’t have to be prepared for that,” she said. “But unfortunately, what we’re seeing now is the US is becoming a higher political risk environment. That’s terrible for the international capital that’s pouring into this country.”

Large companies and business organizations often have keep quite before the Supreme Court’s abortion ruling, although some included Apple and Amazon said they would pay travel expenses for their employees if they need to travel out of state for reproductive health services.

But even that has sparked outrage among some Republicans. Republican Senator Marco Rubio of Florida introduced a bill that would ban employers from deducting abortion-related travel expenses for employees or gender-affirming health care insurance. for transgender children.

Rubio said in a statement.

Ballou-Aares said companies were left between a rock and a hard place.

“CEOs are now in an invincible position where the political system criticizes them for anything, and their employees and communities are demanding more of them.”

In the latest quarterly survey of CNBC CFO Council, 50% of respondents agree that it is important for their company to do business in a state where the laws are open and inclusive. Only 35% disagree.

In the same survey, half of the respondents said that if Roe v. Wade is overturned, the state’s abortion restrictions will have at least some impact on their location decision. Only 20% said they wouldn’t.

By CNBC Top US Countries for Business the study will again look at the comprehensiveness of our indicators as we have done every year since 2015, looking at factors such as protections against discrimination and voting rights. But because abortion laws — and businesses’ attitudes toward them — varied so much at the time of our research, they weren’t a factor in this year’s rankings.

What does the future hold?

A longtime critic of business subsidies believes that the supposed rift between business leaders and politicians in the business-friendly tradition will end when the public, inevitably, returns to business. get tired of it. This is a familiar pattern most recently seen in corporate outcry over new voting laws in Texas and Florida, says Greg LeRoy of the nonprofit group Good Jobs First.

“Some companies have sent a signal or stopped offering money [to politicians]but then they eased back out after the headlines had faded,” he said. After a good period of time, when people are no longer searching, companies want influence in town halls and state legislatures, and they come right back to political donations and receiving money. get great incentives on big tax reductions and great incentive packages. “

CNBC’s Business Countries Top Report 2022 – Our 15^order year – coming up on July 13.