Carrier Blinks, Jobs Stay, Trump Wins |
December 1, 2016 5 Comments
Well, well, well, look at that, Carrier with all the noise about domestic manufacturing jobs decided it would be a good idea to stay in Indianapolis. Undoubtedly they are correct. From the NY Times
From the earliest days of his campaign, Donald J. Trump made keeping manufacturing jobs in the United States his signature economic issue, and the decision by Carrier, the big air-conditioner company, to move over 2,000 of them from Indiana to Mexico was a tailor-made talking point for him on the stump.
On Thursday, Mr. Trump and Mike Pence, Indiana’s governor and the vice president-elect, plan to appear at Carrier’s Indianapolis factory to announce a deal with the company to keep roughly 1,000 jobs in the state, according to officials with the transition team as well as Carrier.
Mr. Trump will be hard-pressed to alter the economic forces that have hammered the Rust Belt for decades, but forcing Carrier and its parent company, United Technologies, to reverse course is a powerful tactical strike that will hearten his followers even before he takes office.
“I’m ready for him to come,” said Robin Maynard, a 24-year veteran of Carrier who builds high-efficiency furnaces and earns almost $24 an hour as a team leader. “Now I can put my daughter through college without having to look for another job.”
It also signals that Mr. Trump is a different kind of Republican, willing to take on Big Business, at least in individual cases.
And just as only a confirmed anti-Communist like Richard Nixon could go to China, so only a businessman like Mr. Trump could take on corporate America without being called a Bernie Sanders-style socialist. If Barack Obama had tried the same maneuver, he’d probably have drawn criticism for intervening in the free market.
The Times goes on with comments from Robert Reich and such. I don’t disagree, part of the reason it worked this time for Trump/Pence is that pence is Indiana’s Governor, and Trump speaks business. I suspect part of it is also that Carrier is owned by United Technologies, one of the big defense contractors, who undoubtedly don’t want any troubles with the administration, if they can help it.
All that said, it’s good news, and it goes to the point that relocating to Mexico is a rather marginal cost-savings, usually. I can remember when we had a Monroe shock absorber plant here, it was the old Rancho suspension plant, built in the 50s or 60s, a few years ago it moved to Mexico, now it’s off in Asia somewhere. Apparently, the Mexicans didn’t work cheap enough either. By the way, they couldn’t get the plant sold, so a few weeks ago they bulldozed it, it ain’t coming back. The tax breaks weren’t good enough, likely.
He won’t win them all, but it’s a good start: when you can save 1000 jobs in December before you are even inaugurated. That’s a thousand jobs that Obama couldn’t have saved.