Posted on 12/03/2016 6:53:34 AM PST by mandaladon
Donald Trump took aim Friday at a second U.S. manufacturer that plans to move jobs from Indiana to Mexico, a day after he threatened consequences for business that shifted American jobs abroad.
“Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers,” Mr. Trump wrote at 10:06 p.m. on Twitter. “This is happening all over our country. No more!”
Rexnord, which is based in Milwaukee, intends to move production of industrial bearings from Indianapolis to Monterrey, Mexico, according to the employee union. The move, expected by the middle of next year, would eliminate about 300 jobs.
The company, which didn’t respond to requests for comment on Thursday, couldn’t immediately be reached late Friday. Shares of Rexnord have tumbled more than 10% from Wednesday’s close.
After criticizing Carrier during his campaign, Mr. Trump on Thursday celebrated a deal with the air conditioner and furnace maker that will keep about 800 jobs in Indiana in exchange for $7 million in tax breaks. Carrier, a unit of United Technologies Corp., still plans to shift 1,300 jobs from Indiana to Mexico.
Chuck Jones, president of United Steelworkers local that represents Indianapolis workers at both Carrier and Rexnord, said Friday he was grateful for President-elect Trump’s intervention but he isn’t optimistic other companies will shelve plans to move manufacturing abroad, even if they are offered state or federal incentives.
“There’s not enough taxpayer money to reward companies not to leave the country when we’re competing with $3-an-hour wages in Mexico,” said Mr. Jones. He said Rexnord appears determined to leave and the union is negotiating over severance benefits.
(Excerpt) Read more at wsj.com ...
You completely miss the point of the effect of impact on the local economy which reflects on the national economy. If a worker has a job he spends his money in his hometown basically. The money received by the butcher, baker, candlestick maker, is spent with other local businesses and so on. ALL pay taxes which fills the coffers of the government. YOUR way suggests that the workers who can’t find jobs will still be spending money as they did before. They will be DRAINING tax money to live on in the form of government safety nets and it is a constant drain on the economy. I am old school too and learned in the real school before CommonCore that money turns over 3 to 4 times creating three to four times its basic value. THAT is why what Trump is doing is THE RIGHT THING TO DO! EVERY JOB he saves has a multiple effect on the economy.
If you're talking about corporate income taxes Carrier will get the new rates whether they offshore some production or not.
The US taxes their net income in the US regardless of where their factories are.
Yes, it's because Trump continually outsmarts them--and always will because he is much smarter than they are---smarter, more truthful, and more decent--and because he has no respect for them or their opinions.
They are people of mediocre intellect at best. Trump is brilliant, and his intellect--and everything else about him--towers over them.
He is larger than life, a hero come to right wrong, basic human goodness and decency come to triumph over evil, and because of him, they see themselves--and everyone else sees them--as the lilliputians that they are.
For them to be dismissed, their opinions scorned, their fury disregarded enrages them. They, who thought they had reached some kind of pinnacle, suddenly finding themselves the objects of ridicule and amusement, cannot bear the truth.
And they have no idea why the American people despise them.
These companies need to buck up. More favorable tax rates and a better regulatory environment is coming. There will be no need to have to bribe foreign officials or be regarded as sellouts.
A classic Freeper post. A rarity around here where we mostly feast on one liners that start off with LOL or the like.
And I cannot dispute your facts. You’ve obviously read a lot and thought deeply about issues related to trade and unemployment the latter of which currently stands at something like 95,000,000 living, breathing American souls.
But all of those 95,000,0000 jobs didn’t go to China. Some. Many. But not all.
Where did they go and how many will we get back by reducing trade or, as they say, achieving better balanced trade? I’m guessing quite a few. Maybe. Maybe we will get back all of the manufacturing jobs we have lost to China and automation in the last 30 years or so. But that is a long way from 95,000,000 jobs. And it is highly unlikely.
You can argue for the job multiplying effect of increased manufacturing employment and that would certainly happen. If Trump’s policies improve manufacturing employment we will see employment rise in other sectors. But I don’t expect to see huge gains in manufacturing employment in the next 4 years. I hope to see it but I don’t expect it. A million or two perhaps. That would be huge. But it’s not 95,000,000.
OTOH, I do expect significant economic growth and large gains in overall employment since I anticipate Trump success in improving the tax and regulation environment in our country. For me that is still much more important than the trade issue.
Give it some time. We should all look back in a couple of years and see how it went. I’m hopeful, actually confident things will be much better.
See my post above. I do understand the multiplying effect that youve pointed out. It is a factor.
My basic issue with the Trump trade policies are that there are negative effects that will wipe out some of the gains that we see (1000 jobs saved) and the net result will be less improvements in our overall standard of living than we anticipated. Add to that the fact that the number of unemployed people in this country is 50 to 100 times the number of manufacturing jobs that we are likely to add over the next few years even if Trumps policies work.
Lowering taxes and regulations both of which are inducements to businessmen to hire new employees is, IMHO, a way more important factor. That’s where your multiplying effect will really come into play.
I am confident it will look better too.
As for that 95 million figure, I have been leery of it. I think there are retirees and possibly even other groups that don’t belong in it.
If we could get 45 million more people working in eight years, that would be good enough. It would facilitate paying down the debt and taking care of things that are overdue to be taken care of.
I also think we need to look long and hard at welfare. Get rid of most of it and the Black neighborhoods will actually improve in short order.
They will be forced into doing what the rest of us do. We work. We pair up and create a home. We support our families.
It takes two incomes. No more of this nanny state stuff.
The basic, cardinal rule of success, is to GET THEIR ATTENTION! Nothing can be advanced without focusing attention on it. Trump has done that. He has succeeded the first time out of the box. The issue is no longer a “talking point” nor a campaign promise which in far too many cases never comes to fruition. Trump has started the ball rolling in the right direction and there are 100 families who will have a better Christmas knowing there will be food on the table in the New Year.
Your objections are ridiculous. It takes months to get things through congress and while Trump is going to get things done as you proposed it is GOING TO TAKE TIME! YOU are not helping! There is NOTHING NEGATIVE about what Trump has done. STOP the CRAP! OUR OVERALL STANDARDS of living are GOING UP for the first time in ages.
LEARN one FACT! The longest voyage starts with the FIRST STEP!
Ifs and buts and negative thinking are NOT what built this country. Americans throughout history have always taken risks and continued on to success. I come from FRONTIER STOCK. I was not brought up on everything being guaranteed in my life.
Are you picking on me?
I ‘ve congratulated Trump several times here on FR for his brilliant PR coup with the deal he cut with Carrier.
And I’m predicting success for him.
I’m precting job growth.
I’m predicting income growth.
I’m predicting standard of living growth.
I’m just pointing out some disagreements on which of his policies will be the real driving force in these chhanges.
I don’t “pick on” anybody. I point out facts and expect people to exercise their brains instead of always picking out negatives (mostly imagined)which are unreal in the face of the entire situation. Example: Insinuating that our standard of living is going to fall because Trump saved 1100 jobs is utterly ridiculous. I would also remind you that Trump has not been sworn in yet so waiting until he took over would have been too late for those 1100 people in all probability. TIMING is one of the most important things when you are negotiating. The occasion arose and Trump acted.
Read all the posts on this same subject yesterday and you will perhaps learn some things you do not know about economics.
“Which of his policies will be the real driving force?” The art of the deal encompasses many facets which must be mastered and used to gain the greatest advantage, however, every “deal” must have something good for both sides or the deal will not fly.
Lots of states do that, and bigger companies get tax breaks therefore that smaller companies couldn’t hope to sniff at—unless they did the outright pay to play.
The reason companies move to FL is because of the low taxes and cost of living and doing business.
OK. Peace.
From recent personal experience FRiend, I would have to disagree. The last 3 years in my exact same position/responsibility, non-union job were:
3 years ago - loss of $150 per month
2 years ago - gain of $50 per month
1 year ago - loss of $30 per month
All due to supposed market adjustments in my field. Which, is and was horse crap. Especially since I personally knew people in other states doing a same but lesser job than me, who were making a lot more.
I got a union job at the same company, and bam! Instant raise, and a good well funded retirement.
There may be benefits to union membership.
But the biggest benefits have been taken over by the government, IMHO.
That does not mean you are at all wrong in your experience.
We likely agree much more than we disagree.
True. Again from personal experience, having known many of the men I now work with for many years; I would say probably 48 out of 50 or so voted Trump. The union leadership whores itself out to the friendliest politicians.
I’m pretty sure that here in South Carolina it is still legal to bury someone in a wooden coffin in the back yard so long as you have a death certificate. Personally I have told my wife to have my remains cremated, I don’t want a fortune spent on me when I am dead.
I read the real number is 1,100 Carrier jobs are staying. I don’t belueve WSJ #s. Half a loaf is better than none.
Lol
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