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.
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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