Trump, Carrier Strike Deal to Keep 1,000 Jobs in America
Is Apple next?
Right before I left Breitbart I covered the news about HVAC company Carrier planning on moving its Indianapolis plant to Mexico, cutting over 1,000 jobs.
During his campaign, President-elect Donald Trump talked about pushing Carrier to keep the jobs in America. It looks like its a promise he kept because Trump and Carrier announced a deal to keep those jobs in America.
We are pleased to have reached a deal with President-elect Trump & VP-elect Pence to keep close to 1,000 jobs in Indy. More details soon.
— Carrier (@Carrier) November 30, 2016
Trump and Vice President elect and Indiana Governor Mike Pence will appear at the plant on Thursday to offer details. The New York Times reported:
Mr. Trump will be hard-pressed to alter the economic forces that have hammered the Rust Belt for decades, but forcing Carrier and its parent company, United Technologies, to reverse course is a powerful tactical strike that will rally his base even before he takes office.
In exchange for keeping the factory running in Indianapolis, Mr. Trump and Mr. Pence are expected to reiterate their campaign pledges to be friendlier to business by easing regulations and overhauling the corporate tax code. In addition, Mr. Trump is expected to tone down his rhetoric threatening 35 percent tariffs on companies like Carrier that shift production south of the border.
I hate the idea of the government picking winners and losers. I slammed President Barack Obama constantly when he did this, especially with Solyndra.
I hope this will apply across the board for companies, big and small. Simple economics tells us that the more profits owners of companies can keep the more money they can pour into the company, thus expanding and creating more jobs.
There is hope Trump will take this approach. Trump spoke to Apple CEO Tim Cook about bringing manufacturing jobs to America:
The U.S. President-elect said he received a call from Apple CEO Tim Cook on Monday. In the call, Trump said he pushed Cook about bringing manufacturing jobs back to the United States, a topic he frequently hit on the campaign trail.
“One of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here,” Trump said he told Cook, according to a transcript of the President-elect’s interview with the New York Times on Tuesday.
The Apple CEO simply replied that he understood the concern, according to Trump’s comments in the interview transcript. Fortune has reached out to Apple for comment and will update this story if a response is received.
Of course, production in America leads to higher prices due to taxes and regulations. Trump made the same pitch to Cook:
But Trump said he told Cook that he was planning a big tax cut and the elimination of many regulations that raise costs for companies operating in the United States.
“I think we’ll create the incentives for you, and I think you’re going to do it,” Trump said he told Cook. “We’re going for a very large tax cut for corporations, which you’ll be happy about.”
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This isn’t picking winners and losers. That’s what Obama did when he rewarded his cronies and supporters with huge government loans and contracts regardless of their actual ability to sustain a business or produce jobs.
It sounds like all Trump is doing is convincing companies he’s going to make the market much more business friendly, not actually doing favors for them individually.
Here’s a pro-tip…
You don’t need a closed-door meeting for a selling a patent (open) change in market conditions.
You might need a private meeting to persuade someone you’re not just talking to the cameras.
Obama ran jobs out of the USA. Trump is working to save them.
Carrier is owned by United Technologies.
It’ll be interesting to see what crony capital honey made this PR stunt seem like a business decision.
Trump has “saved” more US jobs before he even takes office than Obama did in 8 years in office. If that’s a “PR stunt” then we need more of them.
You don’t know what you’re talking about, because you have no idea what the COSTS of this stunt are.
I know that, because it is EXPRESSLY stated that the “details” won’t be released for days, and than I suspect we won’t really know what this is costing and who is actually paying for it until someone does some digging.
I slammed President Barack Obama constantly when he did this, especially with Solyndra.
But Solyndra was a fake. It wasn’t a serious effort to set up a manufacturing plant, it was a con to shovel taxpayer dollars to faithful Dem cronies.
The whole thing was very obvious even at the time. But perhaps only to the relatively few Americans who have actually been involved in manufacturing startups—which would be how many? Maybe a few million, tops. Since most Americans (and, I’d guess, almost no Congresscritters) know nothing at all about such ventures, Obama was able to get away with it.
Carrier isn’t fake.
GE isn’t “fake”, either. It IS crony capitalist with BIG Cs.
Ricardo’s “comparative advantage” theory breaks down in the real world; There are just so many built-in assumptions in his formula that don’t really exist and plenty more factors that are ignored: Taxes, exchange rates, regulations, social “safety nets”, intellectual property and, most importantly, alternate forms of employment. Ricardo assumed that country “A” could sell the things it could make cheaper to country “B” and visa versa. That works well as long as there is reciprocity, but what does America sell to China/Mexico/Vietnam/Bangladesh/Pakistan/Korea/Taiwan in exchange for everything they sell to us? Other than wheat, not much that I can think of offhand. Is there anything that can’t be manufactured cheaper where workers make a dollar per day? In the past, America has invented labor saving technologies in the areas of electronics/airplanes/nuclear power plants/appliances/pharmaceuticals/etc. but then we gave it all away. We didn’t even sell these other countries the rope they are using to hang us – We gave it away. We’re to the point now that we had better ask ourselves, “What are we all going to do to support ourselves until we die?” We can’t all be baristas and fast food cooks.
What you “know” about sound market economics is false, and you got it from idiots.
The key element that was included in the theory that everyone ignores is thus – it requires all participants be at full employment before trade begins – or it merely exports unemployment to the location with the higher labor costs.
Have you a source that confirms any of that?
I doubt very seriously that you really understand the theory, because it does NOT contemplate “labor cost”.
It was Ricardo himself, actually. It was one of the presuppositions.
No. It isn’t. That’s not ever a consideration in the theory.
Put up a source for you assertion.
My mistake it was Joan Robinson who pointed that element out. ( Aspects of Development and Underdevelopment. Cambridge: Cambridge University Press. ISBN 0521226376. )
Going back to your basic assertion about “exporting unemployment”.
I assume you’ve got a citation on that claim.
We’ve already established that the Law (ie, DEMONSTRATED) Of Comparative advantage NEVER contemplates employment levels AT ALL.
There’s no way for you to show ANY mechanism for linking the two issues.
Switzerland is an EXCELLENT example of what I assert. VERY low unemployment, and VERY high foreign trade.
Actually the demonstrated effects are the opposite.
Perhaps if you would check out the citation I did provide when I realized I’d misremembered where it came from. I’l provide it again:
Joan Robinson Aspects of Development and Underdevelopment. Cambridge: Cambridge University Press. ISBN 0521226376.
Are you claiming that the Swiss unemployment rate is HIGH?
Are you claiming that the Swiss do not conduct a VERY HIGH level of foreign trade (one of the highest in the world per capita)?
There is NO linkage to comparative advantage and unemployment.
That linksage is through the level of development, who they’re trading with and what they’re trading.
An oversimplistic view of how economies work is how we end up with people thinking centralized command economies can be anything but disasters.
Market economics are simple. They involve people making their own choices, and deciding with whom they want to trade and on what terms.
It is Der Donald that seeks to impose a command economy on the US, very like Baracula but with a few variations.
He and Bernie Sanders are trade policy soul-mates.
You cherry pick the Swiss, just like a good lefty does. It’s like the left picking Japan to show that gun prohibition works.
The reasons the Swiss are successful have little to do with your “comparative advantage” belief.
Only the foolish stick to the failed theory pushed in the American MBA programs and in the basic economics classes. Anyone with a 3rd grade education can look around and see the result of following failed theory.
Failed theory is not conservative just because you continue to believe. A real conservative with principles learns from the result.
Nope, you lying sack of stupid.
Look up “Netherlands”.
Hell, pick a country.
You’ll never be able to show any linkage between “comparative advantage” and unemployment.
You don’t know your ass from a post-hole.
And THIS from the guy who insisted that automation leads inexorably to an INCREASE in employment in manufacturing…
Is that the true brilliance of Trump then? He is exporting unemployment and importing employment in to the US! 🙂
The evil bastard!
superclod is not simply an economics ignoramus, but factual idiot, as well.
First, we are manufacturing at an all-time high. We build what we have a comparative advantage to build, including cars, trucks, heavy equipment, etc. One area we excel in is oil field equipment and tubulars.
Second, we export vast amounts of finished goods world-wide, including into Mexico, China, etc.
Additionally, we export other vast amounts of raw goods into the nations with which we trade, and are now a net natural gas exporter.
The notion that we only export wheat is one of the stupidest things I’ve read….ever.
8 years Rags…8 years of whinging like a little girl 🙂
Your liberal tears are just too delicious 🙂
MAKE AMERICA GREAT AGAIN!
And watch the progressives melt down and go Bat *hit crazy!
But T-rump IS a Progressive. Poor duped cultists…
More groovy swamp drainage…
For 24 years as a banker at Rothschild, Ross developed a lucrative specialty in bankruptcy and corporate restructurings. He founded his own firm, W.L. Ross, in 2000 and earned part of his fortune from investing in troubled factories in the industrial Midwest and in some instances generating profits by limiting worker benefits. That region swung hard for Trump in the election on the promise of more manufacturing jobs from renegotiated trade deals and penalties for factories that outsourced their work abroad.
A specialist in corporate turnarounds, Ross buys distressed or bankrupt companies at steep discounts, then seeks to shave costs and generate profits. Some of those cost reductions have come from altering pay and benefits for workers. Since 2000, his firm has invested in more than 178 companies.
Ross most prominently created four companies through mergers and acquisitions that focused on steel, textiles, autos and coal. In some cases, Ross has sold the companies he packaged to even larger globe-spanning companies. In 2005, he sold the International Steel Group, which included the former Bethlehem Steel, to the Indian steel magnate Lakshmi Mittal.
I’m SOOOOOOOOO impressed…!!!
Some of you LESS duped, LESS cultish folks may want to cast an eye on that…
“reached a deal with President-elect Trump & VP-elect Pence” Wait a minute, as of today T.Rump has no power in government, at all. What exactly has each party in this “deal” given? Suddenly today Carrier sees profit where yesterday it did not?
T.Rump lied 75% of the time while a candidate, settled a fraud case for $25 million, so for sure giving his word means very little, what else has he got to give today? The devil is in the details.