Posted on 12/01/2016 8:41:21 AM PST by SeekAndFind
Today, about 1,000 Carrier workers and their families should be rejoicing. But the rest of our nation’s workers should be very nervous.
President-elect Donald Trump will reportedly announce a deal with United Technologies, the corporation that owns Carrier, that keeps less than 1,000 of the 2100 jobs in America that were previously scheduled to be transferred to Mexico. Let’s be clear: It is not good enough to save some of these jobs. Trump made a promise that he would save all of these jobs, and we cannot rest until an ironclad contract is signed to ensure that all of these workers are able to continue working in Indiana without having their pay or benefits slashed.
In exchange for allowing United Technologies to continue to offshore more than 1,000 jobs, Trump will reportedly give the company tax and regulatory favors that the corporation has sought. Just a short few months ago, Trump was pledging to force United Technologies to “pay a damn tax.” He was insisting on very steep tariffs for companies like Carrier that left the United States and wanted to sell their foreign-made products back in the United States. Instead of a damn tax, the company will be rewarded with a damn tax cut. Wow! How’s that for standing up to corporate greed? How’s that for punishing corporations that shut down in the United States and move abroad?
In essence, United Technologies took Trump hostage and won. And that should send a shock wave of fear through all workers across the country.
(Excerpt) Read more at washingtonpost.com ...
Only 49? ;)
“If this ass was in charge they would be sending 4000 jobs to Mexico”
And sending 4000 criminal rapist drunk driver drug dealing illegal aliens to the U.S.
“You’re pushing 80 and you’re just learning about it, Bernie?”
Bernie is a Stalinist.
They have no idea what “business climate” even is.
Feel the burn Bernie; as for me, I’m feeling the win!
You can get rid of all regulations and taxes and you can't compete with China paying $2/day for a 12 hour day.
And while EPA needs to be reigned in and have more checks and balances, and some functions returned to the states, you don't want to get rid of it. Google Chinese polution. We don't ever want to be like the Chinese.
But we also don't want to lose our industries to the Chinese, because they don't care about their environment. Hence Tariffs.
To a lot of business leaders, and a HUGE contingent of people here on FR, that is way too much money to pay a lowly factory worker. They find it irresistible when they see the labor rates paid out in third world socialist and communist countries.
And of course, up until recently these same business people used every bogeyman they could conjure up to justify offshoring. With Carrier, they dispensed with an excuse altogether and flatly stated that they’re moving because it’s cheaper to operate down in socialist mexico. Of course, like most offshored ventures, the savings WILL NOT be passed on to the customer. Carrier, like most offshored brands, was banking on brand reputation while boosting their margins, at least until the inevitable decline in quality comes back to bite them in the ass, or the rampant counterfeiting and IP theft comsume their market share.
But at least their financial backers would be able to loot all of the equity out of the company before that happens.
Yeah, but it needs to be more than a threat.
It’s an effective threat now, because Trump is not yet in office. But the threat needs to be “Tariffs are coming, so you might as well stay here.”
It doesn’t need to be “If you don’t stay, we will tariff you.” That creates an unlevel playing field between the companies that got Trump’s attention and those that didn’t. It also still gives advantage to foreign firms. And it does nothing to fund the government to help pay for unemployed Americans or to make up the tax shortfall because those Americans aren’t working.
Bernie Sanders' logic: Trump is unacceptable, because the outcome of his negotiations only saves some of the Carrier jobs from outsourcing rather than all of them. Meanwhile, pro-outsourcing Hillary, under whose watch NONE of the jobs would have stayed in the US, would have been a better alternative.
Bernie didn't put very much deep thought into this one.
WaPo articles like these that try to convince people that up is down, night is day, rich is poor, red is green and jobs are bad make one realize that George Orwell’s prediction of how the Ministry of Truth would operate is dead bang on target.
And remember folks, during your Two Minute Hate for Donald Trump, Oceania has ALWAYS been at war with Eastasia.
Bernie, you’ve never signed the front of a paycheck. Trump has signed paychecks for forty years. I think he knows a thing or two about creating jobs.
Has this guy ever even worked in the private sector - or has he been a cheese eating gubmint parasite his whole life?
I’ll bet it’s the latter.
Here’s the headlines:
1100 jobs go to Mexico
Trump fails to live up to 15 month repeated campaign promise to impose 35% tariff (otherwise Carrier would have not sent any jobs out pf the country)
State to pay carrier $7 million to keep 1000 jobs here for 10 years.
It’s not just the labor cost. I quote Wilbur Ross
Under WTO rules, any foreign company that manufactures domestically and exports
goods to America (or elsewhere) receives a rebate on the VAT it has paid. This turns the
VAT into an implicit export subsidy.
At the same time, the VAT is imposed on all goods that are imported and consumed
domestically so that a product exported by the US to a VAT country is subject to the
VAT. This turns the VAT into an implicit tariff on US exporters over and above the US
corporate income taxes they must pay.
Thus, under the WTO system, American corporations suffer a “triple whammy”: foreign
exports into the US market get VAT relief, US exports into foreign markets must pay the
VAT, and US exporters get no relief on any US income taxes paid.
Uh, no. This is what Trump could get done WITHOUT the powers of the presidency at his disposal. It has already been characterized as "more than Obama has done in the last nine months" WITH presidential power.
Once Trump is sworn in and has taken office, the terms of the next negotiation will be a lot less satisfying to the prospective job exporter.
Let's say it retails for $3,000. So if built in Indiana the labor bill is $200.00 per unit. If made in Mexico the labor bill is $30.00. So there is a $170.00 difference between the two on a $3,000 unit.
So marginally the US unit is 170/3000 = 6% more expensive. So Carrier could sell a Mexican built unit for $2,830 or just pocket the 6%. Guess what they do.
Lowered taxes, and saved a thousand jobs. It seems that proves the Democrat tax and spend is the cause of job flight.
Just like the Washington Compost to try to turn a silk purse into a sows ear.
Carrier didn’t just walk out of the US as they were going to.
Trump won!
Bernie go away and lay down, I’m begging you, don’t make me hunt you down.
Sandernistas love the Compost.
The retail price would stay at $3000, and carrier would pocket all of the difference.
Or more than likely, they would actually raise the price, citing restructuring and reorganizing costs (to pay for the new plant in mexico) take a charge against earnings, and dump all of their US employees onto unemployment, while getting the feds to “retrain” them, courtesy of FTAA with our tax dollars.
This is an old game, and has been going on since the late 1980’s.
Businesses don’t even try to hide it anymore, because one whole generation has lived this new reality. They have no idea what is was like to actually make things in the US.
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