Carrier Deal – A Big Controversy – Not All Jobs Saved as Stated by Trump

As reported by Angela Hanks of ‘Newsweek’- December 8th, 2016 issue, Donald Trump made a decision to pay Carrier with $7 million in tax incentives, so that the company would keep jobs from going to Mexico or overseas. Donald Trump bragged that he cut the deal with Carrier and 2000 jobs were saved in the deal. But the deal really only saves 850 jobs. These jobs are not even guaranteed to stay. The jobs still may move to Mexico, or may eventually just disappear.

The Newsweek article further stated

“For all of Trump’s tough talk about companies facing consequences for moving jobs out of the United States, it appears that his plan in practice is to line companies’ pockets as these companies continue to lay off their workers.”

The Newsweek article continues…

“Trump may have bought those workers a little time, but he has by no means helped secure their futures. In the meantime, Trump has set a dangerous precedent for other companies: Threaten to move jobs overseas, and the government will pay you off to keep some of them in the United States.”
U.S. workers that may loose there jobs as their company decides to relocate overseas will have allot to be concerned about. If Donald Trump tries to fix it, most likely it will stay broken, and in these cases most likely will be at the taxpayers expense. So where did Trump get the money to make this deal in the first place? Actually, he didn’t do a thing, but takes the credit. His Vice-President elect Mike Pense, the present governor of Indiana, took state funds – tax incentives that were used to pay-off Carrier. Did this sink in yet? Mr. Donald Trump and Mike Pence has taken U.S. taxpayer dollars and has given it as a payoff to Carrier.
As Angela Hanks of Newsweek said in her December 8th article,

“Donald Trump’s Carrier deal is a Scam”.

More Factors Come to Light with Trump’s Carrier Deal

NOT A GOOD DECISION

I had previously reported that the majority of jobs would still be lost to Mexico, and that Carrier Corporation would be keeping a small amount of employees at the plant in Indiana. There are various reports on the correct number of people that are getting axed. Trump claimed that the deal he made with Carrier would save employee jobs. Actually as reported today by CNN Money, Carrier actually made an announcement that 800 out of 1400 jobs would be saved, at a cost of $7 million dollars at the expense of U.S. taxpayers of Indiana. This means that at least 500 people will be let go from the comany. The company will also receive $200,000 a year to retain the 800 workers. What encouragement for other companies to copy what Carrier has done. Thank you Governor Pence, still acting Governor of the State and President-Elect Donald Trump!

Remember how Donald Trump claimed that he was going to tax Carrier at 35% of all products they sell to the United States but built in Mexico? It now looks like the shoe is now on the other foot. Carrier has now hiked the prices of its air conditioners and furnaces up to 5% and will take effect on January 1, 2017. To be honest about their decision, they planned to do this even before they negotiated with Trump, but the fact is even after all they are receiving to keep workers in the states, they will still up the cost of all products sold in the United States.

Trump the ‘Hit Man’ Keeps Good on a Promise – OR DID HE

Partially good decision

To continue focusing on Donald Trumps decisions, one of his promises has been fulfilled today. At first glance, you may think that Donald Trump has made good on one of his promises. Out front, you can say that he did, but actually, the way that it was done is worth covering. His original promise made to the American people in several of his debates, and even off the stage is that if Carrier Air Conditioning moves to Monterrey Mexico, he would tax their imports from Mexico into the United States at 35%. From that statement, you can surmise that Donald Trump was going to be very tuff on companies leaving America, but selling their products in the United States.

Donald Trump is now taking credit for keeping Carrier jobs in the United States. He originally stated himself that over 1400 jobs would be lost if the company moved to Mexico. Trump met with the executives from Carrier by visiting their plant and yes, he did save jobs, as the air conditioning company will keep their plant in the United States. Was it just a promise by Carrier that they would keep their plant in the United States, without incentives? Of course not. It was reported today that Carrier will receive money to keep their plant open.

The question is where will they be getting their money to keep the plant in the United States. Since Trump is making good on his promise, is he paying the company out of his bank account? Carrier, from Indiana, which happens to be the home state of present governor Pence, or Donald Trump’s Vice-president elect, is taking state funds, approximately 7 million dollars of tax payer money from the general funds and pay Carrier as an incentive to stay in Indiana. Tax payer money? How is this a good thing for the taxpayers of Indiana? The people of Indiana will pay a company to move around 95% of their existing jobs to Mexico. That means layoffs are coming. How is this fair? Does Donald Trump expect all of this Republican governors to pay money to companies that plan to leave their state? To say that it is ok for a company to leave the country if they just keep part of their business in the United States, and to pay them for making this decision to leave will spark an overwhelming amount of companies to do just that because he has set a precedent here.

Wait, there is more, it gets better. Carrier still plans to open shop in Mexico and ship 1300 jobs out of the country, with the exception that they will keep their present plant open in Indiana. But, only 100 people will be left behind to work the plant. Still, over 1100 jobs will be lost to Mexico. Is this the way that Donald Trump is going to keep companies from outsourcing their jobs to Mexico? You can deduct from what happened her is that Donald Trump had to lie to keep a promise that wasn’t actually kept but has the illusion that it was? He said that “they will pay, believe me”. Yes, they are keeping a plant in Indiana, but they still will outsource at least 1100 jobs to Mexico, and instead of the company paying the United States, the State of Indiana is paying Carrier with taxpayer dollars. Talk about an injustice. This is just one of the decisions made by Trump – “the great businessman” out of many I expect to report on even before he becomes President on January 20, 2016. So what Donald Trump actually has done for mostly succeeding in what Donald Trump says that everyone else was stupid to ever do.

What will they still produce at their plant in Indiana – window fans?