Posted on 12/03/2016 6:56:39 AM PST by bray
And Jesus said unto them, I am the bread of life: he that cometh to me shall never hunger; and he that believeth on me shall never thirst. John 6:35 KJV
The Establishmedia was outraged Trump would save eleven hundred jobs at the Carrier plant in Indianapolis. This is just not how things are done in the District of Corruption. They had the freshly texted talking points stating this was cronyism for giving them a seven million dollar tax break. Some even went as far as calling it corporate welfare and favoritism when in reality it was simply proving lowering taxes works. It is used around the country to bring businesses to localities. In reality it tax breaks costs the gummit zero to keep a business like Carrier and will actually make more taxes from the business and employees.
Trump knows business and how to make it work for a community with as little interference as possible. This is an example of what can be done on a national scale which is being done in Indiana. If you bring down the taxes there than you will not only have fewer businesses leave for other lower taxed countries like Mejico, but you will have businesses begin to move here. This is a great visual for all Americans of what can be done by a President who is willing to do what needs to be done to keep jobs in America.
This really irritates the Marxists especially since Trump said he would not let companies like Carrier leave the Country and would do everything he could to keep them here. The Marxist way is to the District of Corruption send grant money to a PC business like Solyndra which nobody wants their product and later have Solyndra make a large donation to the DNC. For a politician from Moscow on the Potomac they want to centralize everything out of there rather than what Trump just did and simply let them keep more of their profits and not cost anybody anything in real dollars.
What is truly amazing is how he made this deal happen. He explained he used his tried and true method of calling the head of the company. He was going to call the head of Carrier at first, but knew if you were going to get something done he had to call the head of United Technologies which owns Carrier who is Greg Hayes. He calls Greg on Thanksgiving Day since he had nothing better to do and began negotiations on what it would take to keep that plant open. It must have been a positive meeting since he tweeted out that he met with him and it would be announcing something soon. What a great Thanksgiving it must have been for the families of that plant.
How great is it to have someone who has a business mind rather than a political shill. There is no way a politician would think he could make a deal with the CEO let alone his manager allow a call to be made for political fears. Rather, Trump calls Pence to tell him what he wants to do and then conference calls the CEO and begins negotiations. He knows why this company is leaving and what Mexico has to offer which Indiana cannot match.
Mexico has wages of twenty dollars a day with no benefits while Carrier is paying around $40 per hour with benefits which is a tough hurdle to leap. They also have very few confiscatory taxes to pay state and federally in addition to low construction costs down there. Donald likely assured him that they would be lowering Federal taxes from forty to fifteen percent and would be eliminating many of the ridiculous regulations which have nothing to do with clean air or water but costs the company time and money.
He also told him he was throwing out all of the Global Warming restrictions since he has installed one of the great Warming skeptics as the head of the EPA transition team Mike McKenna. He is going to bring this debate to the nation and show what a scam it is. This will free companies like Carrier from being forced to make costly plant additions lowering CO2 emissions. It will also allow coal fired plants to be restarted and lower the cost of energy for heating, cooling and manufacturing. He likely gave his view of an energy abundant America and what that means to Carrier and United Enterprises and how he really wanted them to be a part of this rebuilding of our once great Country.
There are three basic components to any manufactured product labor, energy and taxes while labor is a byproduct of energy costs. To produce anything you need to consider these two expenses and how much it takes to make your product. Labor is a component of supply and demand unless you have an artificial factor such as union labor which has been corrupted by politics. Unions tend to force labor costs higher than the marketplace and are fading into the background as companies move to Right to Work states.
Energy is a complete supply and demand commodity with the exception of regulations. If you take out the regulations which Trump is going to do it becomes a real supply and demand which will be lowered dramatically. There is a level it will be floored at since there is only so low it can go without being profitable, but those levels will be challenged as new technologies come on board and the pricing and labor spiral themselves downward as everything begins to cost less to make.
President Elect Trump painted his long term picture to the CEO who understood these changes will add to his bottom line. He explained how the tax advantages he would be seeing both as the incentives being discussed and the tax plan Trump is planning. These arguments won over Greg Hayes and he agreed to keep half of his plant open with expectations to expand it in the future making it a win, win. Trump may not have been able to keep all of the plant open, but half a loaf is better than none and what a powerful signal to send to workers and manufacturers across America.
What we saw was the difference between Marxism and a Capitalist. The Marxist would have let the plant shutter and watched the jobs go knowing the workers would soon be under their control. They would be have forced social justice through strangling taxes and regulations and the centralized planning. The unjust Capitalist would be forced to close his doors in return for some Politically Correct company to replace them with gummit subsidies to pay for those makework jobs often greater than the job is worth. Hillary was planning to subsidize solar panels even though they are made cheaper in China which owns that tiny market. She certainly was not going to lower taxes and regulations as a solution.
The Capitalist rolled up his sleeves and solved the problem. He had an idea what the issues were to keep their company competitive in the air conditioner market and verified them. He told the CEO what his vision of the economic landscape would be after a couple years of his administration and how that would improve their bottom line. In the end they made a deal and Carrier was able to keep their employees working at this plant.
This negotiation was not only for this one plant it was for every large and small plant across the country as they realize this is a new day. There is a new business friendly climate change coming and those eleven hundred families are going to be eleven million celebrating Thanksgiving and Christmas with jobs in their futures.
Pray America wakes
enough brayin
Donald made Greg an offer he couldn’t refuse
Pretty good analysis.
Bigger picture, though, is that the GOP has traditionally been the party of the entrepreneur and small business. Need to really target them with removing the regulatory and tax handcuffs. Add in the working class and you have a winning coalition for the next 50 years.
As a bonus, places like Mexico will ultimately benefit, as will we, if/when they decide to start their own companies instead of relying on us to send them to Mexico gift wrapped, courtesy of the American People/taxpayers. S. Korea is a fine example of how that can work. As other nations industrialize, the "rising tide lifts all ships" concept will be in full evidence.
God Bless President trump and Vice President Pence (and those who helped get them elected.
Trump doing what he could short-term, he can’t pass laws or deregulate anything as President-Elect. But it shows Trump sees the level of urgency for a massive recovery the private sectors needs.
Gotta wonder how that was missed for so long, obviously Democrats had the rhetoric but no intent being their focus is imposing Utopian state rule.
Trump has done more for real jobs before even being inaugurated than the last 4 presidents have done over the last 25 plus years.
Just read a glowing article from Newt about how big of a deal it is that Trump got this accomplished before is even inaugurated. Congrats to Trump and Pence - good on Carrier for saving US jobs too.
The MSM is incapable of economic analysis. First, they have downplayed that the $7 million is over a period of 10 years. Second, they forget that the workers who remain employed pay federal, state, and local income taxes. Those would easily amount to at least $1000/worker for a total of $1 million, which more than offsets the $700,000 in tax relief given to the company. Finally, they fail to mention the unemployment benefits and other transfer payments federal, state, and local gov’ts would have to pay if those jobs were lost. Anyone who thinks that only Carrier won from this deal is an economic idiot.
Let us not ignore the Mexican culture, which is known for the noon siesta and the attitude of “I have enough money for now”. Jeep is coming back, prior to Pres Trump’s election win, due to the fact that Mexicans are unreliable workers. When they show up, they work very hard. But after a few paychecks, many feel entitled to take a week or two off because “work is hard”. You cannot run a factory with workers like that.
Add in the culture of illiteracy and general laziness (good enough) and the Quality Control Dept goes nuts. Then add in the language barrier and the fact that even if all instructions are translated into perfect Spanish, not everyone reads.
Americans are the most PRODUCTIVE workers on the planet.
A B-I-G item in this “moving to Mexico” fad that has been going is that, when a company builds a new factory in Mexico, that factory becomes the property of the Mexican government. If Ford builds a $3+ Billion plant in Mexico; Mexico will own it. THAT is YUUUUGE!
The hidden beauty in these negotiations is that Carrier obviously trusted that Trump would keep his word. THAT is the bottom line of why Trump won the election. He IS trusted.
I believe it works that way in China as well
American firms do not own manufacturing in China, they rent it from the government or contractors
“And Jesus said unto them,...”
Thank the Lord for perspective. And the reminder to not put your faith in ANY man.
One of the primary jobs for Trump in his first year is to educate America what Capitalism is and how it works. He has to explain the invisible hand.
“As a bonus, places like Mexico will ultimately benefit, as will we, if/when they decide to start their own companies instead of relying on us to send them to Mexico gift wrapped, courtesy of the American People/taxpayers.”
But in order for that to happen in Mexico, that country will need a Trump-like “revolution,” because it’s ruling class is a bunch of displaced “white Spaniards” who are to Mexico what Obola has been to America.
Unfortunately, that's not what happened. Carrier got a break and no other businesses did.
That's what is giving conservatives heartburn.
Happens all the time and all the other companies will be getting better cuts than this. Conservatives should appreciate lower taxes no matter if it is selective.
Would you rather those people lose their jobs in the name of Conservative purity?
Of course not, but none of this stuff is without cost.
What about the Trane employees who may now lose their jobs because Carrier is more competitive?
Having the Federal government pick winners and losers used to be considered a bad idea by conservatives.
I guess we're in a post-principle world.
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