jimnyc
12-04-2016, 03:14 PM
It's funny reading the liberal media - then the truth.
Look at Salon, who claims the deal is a PR stunt. In their secondary headline they state he saved "a few hundred jobs". Then in the very first paragraph they state it was 1,000 jobs. Keep reading at the bottom for reality.
As part of Trump's campaign was the promise of reduction in corporate tax rates. Trump simply explained to him that any savings they may benefit from - would be exceeded by the savings they would get from these reductions if they remained. In addition, they will get approximately 700k per year in tax incentives. With the jobs staying here, and the money they will give to the employees, and the money in the local economy - I think the state of Indiana wins with this deal, as does Carrier. In other words, a successful deal.
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Donald Trump’s Carrier deal is an empty PR stunt — and a bad precedent that incentivizes bad corporate behavior
Donald Trump "saved" a few hundred jobs by bribing the company with tax breaks. That's a grift, not a policy
The more we learn about the agreement that Donald Trump reached with Carrier Corp. for the manufacturer to keep 1,000 or so jobs in Indiana instead of moving them to Mexico, the more the whole shaky edifice looks to be propped up by positive spin and Trump’s own immense self-regard. In other words, it is your typical Trumpian public relations coup.
In this, it is not unlike the type of hype the mogul might once have used to invade Atlantic City or Las Vegas. Announce you have reached a “tremendous deal” to build a giant casino or keep open a manufacturing plant, stand in an empty lot or on the shop floor to brag about it, then luxuriate in the hosannas tossed your way by local leaders whose constituents will soon be able to apply for jobs dealing blackjack or keep the ones they already had building air conditioners. By the time anyone notices all the ways the locals got screwed, you’ll be on to building your next building or starting a nuclear war between Pakistan and India or whatever.
Basically, the deal amounts to short-term ego gratification for Trump but does nothing to address the long-term problem of manufacturing decline in the Rust Belt or honestly level with blue-collar workers about the future of factory jobs that are growing ever scarcer in America. Trump has no more idea about how to do that than anyone else in his party — assuming it is even interested in doing so — beyond bribing companies with tax breaks. Which is not a long-range sustainable model for the manufacturing sector.
Here is what we know about the Carrier deal. The company had planned to close its Indianapolis plant and ship about 2,000 jobs to a new facility in Monterrey, Mexico, where it can get away with paying workers $19 a day. On the campaign trail this year Trump had been railing against the move as an example of the creeping globalism that has hollowed out America’s manufacturing industry and he promised to reverse it. If he couldn’t, he promised his voters, he would slap a 35 percent tariff on any products that Carrier made in Mexico and then tried to import into the United States.
Rest here - http://www.salon.com/2016/12/01/donald-trumps-carrier-deal-is-an-empty-p-r-stunt-and-a-bad-precedent-that-incentivizes-bad-corporate-behavior/
How Donald Trump Sealed the Deal to Keep Carrier Jobs in the U.S.
Even before becoming Commander-in-Chief, Donald Trump has become negotiator-in-chief, as illustrated by the deal he struck with air conditioning manufacturer Carrier.
A source close to the company said President-elect Trump called Greg Hayes, CEO of Carrier’s parent company United Technologies, two weeks ago and asked him to rethink the decision to close the Carrier plant in Indiana.
Hayes explained that the jobs were lower-wage and had high turnover, and the move was necessary to keep the plant competitive, according to the source. He said the plan would save the company $65 million a year.
President-elect Trump replied that those savings would be dwarfed by the savings UTC would enjoy from corporate tax-rate reductions he planned to put in place. During the recent campaign, Trump threatened to slap tariffs on Carrier imports from Mexico.
At the end of the conversation, Mr. Hayes agreed to work with Vice President-elect Pence to see what he could do.
In the end, UTC agreed to retain approximately 800 manufacturing jobs at the Indiana plant that had been slated to move to Mexico, as well as another 300 engineering and headquarters jobs. In return, the company will get roughly $700,000 a year for a period of years in state tax incentives.
Some 1,300 jobs will still go to Mexico, which includes 600 Carrier employees, plus 700 workers from UTEC Controls in Huntington, Ind . The company has plans in place to offer displaced workers employment and relocation in UTC’s aerospace business, or to provide funding for reeducation.
http://new.fortune.com/2016/11/30/donald-trump-carrier-deal-jobs/
Look at Salon, who claims the deal is a PR stunt. In their secondary headline they state he saved "a few hundred jobs". Then in the very first paragraph they state it was 1,000 jobs. Keep reading at the bottom for reality.
As part of Trump's campaign was the promise of reduction in corporate tax rates. Trump simply explained to him that any savings they may benefit from - would be exceeded by the savings they would get from these reductions if they remained. In addition, they will get approximately 700k per year in tax incentives. With the jobs staying here, and the money they will give to the employees, and the money in the local economy - I think the state of Indiana wins with this deal, as does Carrier. In other words, a successful deal.
-----
Donald Trump’s Carrier deal is an empty PR stunt — and a bad precedent that incentivizes bad corporate behavior
Donald Trump "saved" a few hundred jobs by bribing the company with tax breaks. That's a grift, not a policy
The more we learn about the agreement that Donald Trump reached with Carrier Corp. for the manufacturer to keep 1,000 or so jobs in Indiana instead of moving them to Mexico, the more the whole shaky edifice looks to be propped up by positive spin and Trump’s own immense self-regard. In other words, it is your typical Trumpian public relations coup.
In this, it is not unlike the type of hype the mogul might once have used to invade Atlantic City or Las Vegas. Announce you have reached a “tremendous deal” to build a giant casino or keep open a manufacturing plant, stand in an empty lot or on the shop floor to brag about it, then luxuriate in the hosannas tossed your way by local leaders whose constituents will soon be able to apply for jobs dealing blackjack or keep the ones they already had building air conditioners. By the time anyone notices all the ways the locals got screwed, you’ll be on to building your next building or starting a nuclear war between Pakistan and India or whatever.
Basically, the deal amounts to short-term ego gratification for Trump but does nothing to address the long-term problem of manufacturing decline in the Rust Belt or honestly level with blue-collar workers about the future of factory jobs that are growing ever scarcer in America. Trump has no more idea about how to do that than anyone else in his party — assuming it is even interested in doing so — beyond bribing companies with tax breaks. Which is not a long-range sustainable model for the manufacturing sector.
Here is what we know about the Carrier deal. The company had planned to close its Indianapolis plant and ship about 2,000 jobs to a new facility in Monterrey, Mexico, where it can get away with paying workers $19 a day. On the campaign trail this year Trump had been railing against the move as an example of the creeping globalism that has hollowed out America’s manufacturing industry and he promised to reverse it. If he couldn’t, he promised his voters, he would slap a 35 percent tariff on any products that Carrier made in Mexico and then tried to import into the United States.
Rest here - http://www.salon.com/2016/12/01/donald-trumps-carrier-deal-is-an-empty-p-r-stunt-and-a-bad-precedent-that-incentivizes-bad-corporate-behavior/
How Donald Trump Sealed the Deal to Keep Carrier Jobs in the U.S.
Even before becoming Commander-in-Chief, Donald Trump has become negotiator-in-chief, as illustrated by the deal he struck with air conditioning manufacturer Carrier.
A source close to the company said President-elect Trump called Greg Hayes, CEO of Carrier’s parent company United Technologies, two weeks ago and asked him to rethink the decision to close the Carrier plant in Indiana.
Hayes explained that the jobs were lower-wage and had high turnover, and the move was necessary to keep the plant competitive, according to the source. He said the plan would save the company $65 million a year.
President-elect Trump replied that those savings would be dwarfed by the savings UTC would enjoy from corporate tax-rate reductions he planned to put in place. During the recent campaign, Trump threatened to slap tariffs on Carrier imports from Mexico.
At the end of the conversation, Mr. Hayes agreed to work with Vice President-elect Pence to see what he could do.
In the end, UTC agreed to retain approximately 800 manufacturing jobs at the Indiana plant that had been slated to move to Mexico, as well as another 300 engineering and headquarters jobs. In return, the company will get roughly $700,000 a year for a period of years in state tax incentives.
Some 1,300 jobs will still go to Mexico, which includes 600 Carrier employees, plus 700 workers from UTEC Controls in Huntington, Ind . The company has plans in place to offer displaced workers employment and relocation in UTC’s aerospace business, or to provide funding for reeducation.
http://new.fortune.com/2016/11/30/donald-trump-carrier-deal-jobs/