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Thursday, December 01, 2016

Liberals whine about President Trump's success with Carrier

President Trump's success in keeping Carrier in Indiana has provided me with another gallon of liberal tears.

From the people who supported spending $787 billion to create 4 million jobs in Obama's disastrous stimulus, comes a complaint that Indiana will give Carrier $700,000 to keep 1,000 jobs.

The stimulus cost $19,675 per job saved.

This Carrier deal is $700 per job, an amount easily recovered by state income taxes. This is a normal activity of Indiana's state economic development program. Governor Pence I am sure advised Trump of this.

The $700,000 is a fig leaf to save face for United Technologies (owner of Carrier) which decided to stay in the USA instead of running afoul of a president who could slap a 35% tariff on its products, just as President Reagan did on Japanese motorcycles to keep Harley-Davidson alive.

From the New York Times:
While Carrier will forfeit some $65 million a year in savings the move was supposed to generate, that’s a small price to pay to avoid the public relations damage from moving the jobs as well as a possible threat to United Technologies’ far-larger military contracting business.
Roughly 10 percent of United Technologies’ $56 billion in revenue comes from the federal government; the Pentagon is its single largest customer. With $4 billion in profit last year, the company has the flexibility to find the savings elsewhere.
Members of Congress have been pressing to punish big military contractors if they move jobs outside the United States.
Many industrial companies face intense pressure from Wall Street to increase profits, even when the economy grows slowly — a major reason United Technologies decided to move.
It's called leverage. President Trump used it.

The Washington Post childishly pretended Trump lost with these stories:
A company Trump attacked will receive state tax breaks to keep jobs in the U.S.
Bernie Sanders: Carrier just showed corporations how to beat Donald Trump 
What happens if Trump keeps interfering with the free market? Look at the Soviet Union.
Yes, he might try to take over GM and Chrysler next.

Then there is the American Thinker, over-thinking the whole thing:
The hypocrisy and abandonment of free market principles with “conservatives” applauding Carrier's imploding to external political pressure should be the cause of great concern. For what is popularly seen as "Making America Great Again" by retaining jobs here in the U.S. is really an abuse of the office of the Presidency - using its bully pulpit to pressure companies into economic decisions it would otherwise not make. It is a shameful use of political power and is symptomatic of the corrupt elements inherent within demagoguery. But then again, a demagogue is who the people elected.
The pressure applied to Carrier (and Ford) is nothing other than a stealth welfare scheme -- because the reality of this is that consumers will be subsidizing these workers´ pay by paying higher prices for products that would otherwise be lower. This also puts the manufacturer at risk against foreign competitors who will now gain a competitive edge in labor costs. Are free market principles now subordinated to the exercise of national condemnation to oppress companies from acting in their own self-interest - the very self-interest that fuels the beneficial effects of capitalism? Are U.S.-based companies now the provincial vassals, indentured to serve a master no matter how inhospitable his rules are? Where is the liberty in all of this?
A stealth tax? Really? So don't buy a Ford or a Carrier. Just as there is no right to a living wage, there is no right to a living price.

And yes we need these "provincial vassals" -- odd description of multi-billion-dollar companies -- for the protection of the nation. A country that is beholden to other countries for war matériel is not really all that independent.

President Trump promised to keep the jobs in Indiana. He delivered.

That he is making his critics cry is an unexpected bonus. Mmm. Liberal tears.


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  1. This was a Band-Aid approach to a sucking chest wound. While it may save some jobs in the short term, what is really needed to cure the problem is a restructuring and easing of the voluminous regulatory burdens and lowering of the corporate. Perhaps some union contracts need to be reexamined and some unions need to be decertified. Some workers may have to scale back their wages a bit if they want to keep their jobs. It will take time and effort but worthwhile projects always do. - Elric

    1. Oops! "corporate tax rates." And remember, corporations don't actually pay taxes. They pass the taxes through to their customers' costs. - Elric

  2. Imagine the next year of the Press finding its collective selves being confounded on a weekly basis.


  3. Probably less than !Jeb! spent per vote in the primaries, and that money was/is completely unproductive.

  4. Easing the tax burden, and especially the regulatory burden, would help the economy immensely.

  5. The stage is set . . . no Trump success will be good enough and any Trump failure, no matter how small, will inspire a "See! We told you so!"

    You think BUSH Derangement Syndrome was bad, just watch Trump Derangement Syndrome for the next 4 years.

    BTW have popcorn sales hit record highs yet?

  6. The NYT didn't object or what Trump did because not only does the state of New York spends billions every year to keep business from moving away from its high tax policies but the universe's richest Mexican keeps buying their crappy stock. Fine with them. Higher taxes, more direct subsidies all in line with their Marxist preaching, virtuously unchanged since the 1930s.Trump will have to do better in the long run and I think he will with better tax policies as AN says above. But Carrier was good political theater and I enjoyed the juicy whiner's tears too, Better than any wine.
    Who is the press impressing? No one who failed to consult their wisdom about the election is paying attention now,and those who did know now they were intentionally not credible for selfish corporate reasons. The WSJ and USA today took the biggest hits in my opinion because they gave up their long standing objective neutrality to dive into the mud with the crooked one to eagerly sluice for gold. Trump will get about 2 years to do what he wants. If growth hits 4-5% and even the fake unemployment rate falls, and the DOW crashes 21000, no one at all will listen to their song of woe. But their masters will have to pay up more of their fortunes to keep them employed,even if now it is against their personal capitalist ethics.

  7. I'm a project engineer: if they would reduce regs, reduce corp taxes and control illegals immigration - I could cost justify millions of dollars in new project right now I am working on trying to get going. I'm only one project engineer out of many thousands of us siting on projects we can't cost justify because of the US government. I would say there is easily 100 billion+ in projects sitting and waiting to proceed if the gov gets out of the way. These are all small projects, 1 to 10MM, that would have an immediate impact within 3 to 6 months of the change in negative government behavior.

    1. Him who has ears to hear, let him hear.

    2. I'm curious, jjs -- how would controlling/limiting illegal immigration help you reduce costs? The regulation and taxes burden is obvious, of course.

  8. That would actually be $196,750 per job saved for the stimulus.

  9. The stimulus saved jobs?

    Who knew?

    And lowering the taxes and cutting the regulation the Demos have imposed the last 8 years is what will get business moving again.

    Wotta concept!

  10. United Technologies is a crony capital outfit in Indiana with usually small plants scattered in every nook and cranny in the state. They spend a great deal of time seeking available grants from Indiana and Hoosier cities. The strange thing about this Trump-delivered welfare check is that the closing of a UTEC plant in Dan Quayle's hometown of Huntington, IN where 700 jobs are crossing the border unabated by Trump-negotiations. Is this prescribed in "The Art of the Deal?" Someone needs to ask Tony Schwartz.

    United Technologies probably has had an opportunity to let their union contracts expire or be voted out by members now that Indiana is a right-to-work state. But working these crony capital deals is less pressure. I wonder how the USW would have voted had they been offered lower pay to keep the work in state?

    Then again, they heard Trump say that this company would have to pay high tariffs for importing goods that were previously made here - but we all know that that was yesterday and the words have no meaning today.

  11. Better Democrats consider this than whine about Trump:

    Popular Vote totals (rounded) excluding NY and CA

    Clinton: 52,712,000
    Trump: 55,660,000

    Which = the "rest of America"

  12. The great thing about liberal tears is you get drunk as a skunk drinking your fill of them, and get in your car and go somewhere knowing you'll never get busted for a DUI!
    Plus, they taste SOOO good.....