Wednesday, November 30, 2016

No, the Orange One Did NOT Save Those Carrier Jobs

It is, as usual, bullshit, bribes and lies.  Repug governor offers company big tax incentives to keep a few jobs in state.  Tax incentives worth WAY more than the actual jobs, meaning state taxpayers get ass-fucked as per standard GOP operating procedure.

The other 1,100 jobs, apparently, will still be lost to Mexico. There are several things to say about this:
  • From a PR perspective, this is genius. If you want to demonstrate that you care about blue-collar workers, what better way than a big televised announcement surrounded by actual blue-collar workers who will be keeping their jobs?
  • We don't know yet what incentives Pence has promised, but it's worth noting that this is really nothing new. State and local governments offer financial inducements to keep companies from moving all the time. Trump is following a wheezy old playbook here, but even at that he can only do this because of the lucky coincidence that his vice president happens to still be governor of Indiana for a few weeks longer.
  • Compared to Carrier's 1,000 jobs, Obama's auto bailout saved something like 250,000 jobs at GM and Chrysler, and 1-2 million total jobs throughout the entire automotive supply chain. Just sayin'.
  • Needless to say, showering incentives on manufacturing companies to stay in America is not a sustainable national manufacturing strategy. And anyway, aren't Republicans opposed to the government picking winners and losers?
  • Carrier is a big company, but it's owned by United Technologies, a gigantic defense contractor that does a lot of business with the federal government—soon to be headed by one Donald J. Trump. Would Trump stoop to sabotaging UT's government business if it didn't play ball on the Carrier plant? Maybe. Hell, even Bernie Sanders thinks Trump should promise that UT will never get another government contract if it moves any jobs to Mexico. This would be a massive abuse of power, of course, but who wants to take a chance that Trump cares? Probably not UT.
  • Just for the record, the biggest supplier of working-class and middle class jobs in Indianapolis is not Carrier—or any other heavy manufacturing company. The top ten are Eli Lilly, Indiana University, Purdue University, St. Vincent Hospital, St. Francis Hospital, CNA Financial Group, Methodist Hospital, the Peyton Manning Children's Hospital, Roche Diagnostics, and FedEx.
  • All that said, this is, once again, a genius PR move. Donald promised he'd keep those Carrier jobs in Indianapolis, and by God, he delivered.
What to pay attention to next: the exact terms of the deal that Carrier got. Just how big a bribe did Pence have to pay them to save those 1,000 jobs? After all, Trump was probably pretty eager to have this chance to show off, and he's got a long history of giving away the store when he really wants something.

1 comment:

ohmemercylard said...

Just like last week's lie that he stopped Ford from leaving Louisville and moving to Mexico, which they had never intended to do. This oft-reported lie was all over local and national media, yet I never saw much of a retraction when it was revealed as bullshit..