Trump Surrendered to Carrier

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Trump did not ‘save’ 1,000 jobs at the Carrier plant.

He did a couple things, some of which I’m okay with:

1) He and the state of Indiana offered about $7M in tax breaks to Carrier. The jobs saved are higher paying manufacturing jobs, averaging about $70K, per year. This means that he made the jobs a net wash for the company in the first year, before any value derived from their work is factored in.

He essentially paid Carrier our tax dollars to keep those people hired. I would be fine with this, EXCEPT that Carrier gets to keep the profit derived from their work! Socialize risk, privatize profit. This is the American way.

2) He promised to relax regulation on the company and be ‘friendly to business.’ That means rather than doing what he said he’d do – institute retaliatory tariffs and block outsourcing companies access to US consumer markets to create a downside to job destruction – he will actually reward them for pitting American labor against foreign labor, realizing the globalist goal of eroding worker and consumer protections in developed countries for the profit of the owning class. He is the opposite of a cure to globalist economics, he is the apotheosis. Which of course we knew, but it bears naming now that it’s actually happening.

3) He coerced the parent company by leveraging their existing business with the federal government, basically saying ‘don’t get on my bad side.’ This I agree with. The federal govt is a major customer of these firms, if they aren’t good citizens they shouldn’t get access to our business.

But the tragedy of this is that he’ll point to this deal forever as an example of his sterling deal making, when any two bit negotiator could have said ‘we’ll just use tax revenue!’ and lose half the jobs anyway. A real worker focused policy would leverage tax income (from corporate profit and high earners) to create jobs and reap those rewards for the commonwealth. And it would increase worker protections, not decrease them at the barrel of a pink-slip printing gun.

Categories: labor

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