Trump’s Carrier Deal Costs Taxpayers Millions & Jobs Still Going to Mexico
President elect Donald Trump is quite proud of the Carrier deal he and veep Mike Pence made in order to “save” American jobs from going to Mexico. This week he toured the factory, took plenty of photo-ops and even made a speech that was replayed on television all across the country.
Trump told the media : “This is the way it’s going to be. Corporate America is going to have to understand that we have to take care of our workers also.”
While on a high from the Carrier deal, Trump said: “Companies are not going to leave the United States anymore without consequences. Not gonna happen. It’s not gonna happen.”
But the reality of the Carrier deal is far from the fantasy the president elect is portraying for the media.
Dan Ikenson, director of the Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute, pointed out that this deal “sets a pretty bad precedent”.
Ikenson went on to say: “I don’t think we should be addressing issues like this on an ad hoc basis. It certainly incentivizes companies to make a stink and say: ‘We’re going to leave, too. What are you going to do for me?’ ”
In terms of standing up for corporate greed, Trump’s triumph appears to be nothing more than social engineering via a single manufacturing corporation in order to give his base something to cheer for.
In order to make this deal a reality, Trump used the power of the governorship through hi veep Pence who is still acting governor of Indiana.
Pence promised Carrier $7 million in taxpayer monies and tax breaks over the next decade to persuade the company to keep jobs in the US. The Indiana taxpayer got for their money, the salvage of only 1,000 jobs with more than 400 still headed off to the unemployment office just before Christmas.
For now, Pence handed over $700,000 from the taxpayers of Indiana to Carrier to get the ball rolling on this not-so-tremendous deal that the president elect is boasting about for optics.
And even though this might look good on the surface, Carrier “will keep about 800 jobs it had planned to move out of the Indianapolis plant, but it still plans to move 600 jobs from that factory to Mexico.”
The company also made changes to its employee benefits packages for those who get to keep their job. Carrier once paid those employees an average of $25 per hour, but now their hourly wage will be reduced to $5 per hour and their healthcare coverage and other benefits have gone by the wayside.
Across the street from the Carrier plant Trump purports to have saved is another plant owned by the same company where over 2,000 jobs are being cut and sent to Mexico , but the president elect is not commenting on that. The Carrier employees of that plant have begun protesting outside, demanding that Trump save their jobs too – to no avail.
In his defense, Trump called the Carrier deal “very presidential” and promised to keep doing things like this because he “lies doing it”. Trump added: “But we’re going to have a lot of phone calls made to companies when they say they’re leaving this country, because they’re not going to leave this country.”