Remember when Obama mocked Trump for saying he would bring jobs back. Obama told a Carrier employee they were not coming back. Barack Obama is the man who lost 800,000 manufacturing jobs and he looks pretty stupid now.
“Now, the good news is that there are entire new industries that are starting to pop up and you’re actually seeing some manufacturers coming back to the United States because they’re starting to realize, “You know what? Energy prices are lower here, workers are better here, this is our biggest market. And so even though we off-shored and went someplace else before, now it turns out we’re better off going ahead and manufacturing here.”
But for those folks who have lost their job right now because a plant went down the Mexico, that isn’t going to make you feel better. And so what we have to do is to make sure that folks are trained for the jobs that are coming in now because some of those jobs of the past are just not going to come back, and when somebody says, like the person you just mentioned who I’m not going to advertise for, that he’s going to bring all these jobs back, well how exactly are you going to do that? What are you going to do?
There’s — there’s no answer to it. He just says, “Well, I’m going to negotiate a better deal.” Well, how — what — how exactly are you going to negotiate that? What magic wand do you have? And usually, the answer is he doesn’t have an answer. So what I’ve tried to do, what my administration’s tried to do is let’s grow those manufacturing sectors, like clean energy, like some of these new technologies that are coming up, let’s focus on those.”
There were no tax breaks given to Carrier to keep 1,100 jobs in Indiana, there was a promise of tax relief and fewer regulations.
Carrier is getting a modest $7 million in financial incentives over the next 10 years from the state of Indiana to keep 1,000 jobs at an Indianapolis plant, sources familiar with the deal tells CNN.
That is just a fraction of the estimated $65 million a year it expected to save if it had moved those jobs to Mexico.
The company will get $500,000 per year in state income tax refunds, as long as it keeps at least 1,069 manufacturing jobs in the state.
They will get to keep government contracts. Carrier parent United Technologies is a major defense contractor, with $5.6 billion in revenue from federal government contracts, or 10% of its total revenue. The government also pays for $1.5 billion of its research and development costs. They will not lose their contracts with this deal.
Money – $200,000 – for retraining workers that was taken away when they decided to move will be returned.
Carrier was threatened with high tariffs and they are worried about other plants, not simply the one in Indiana.
Donald Trump spoke after United Technologies promised to keep 1,100 jobs in Indiana.
— Katie Couric (@katiecouric) December 1, 2016
Trump appears to be playing hard ball.
“That’s why they’ve done so well over the years, that’s why it’s a great company, because they have flexibility. But we’re not going to need so much flexibility for other companies because we are going to have a situation where they’re going to know, number one, we are going to treat them well, and number two, there will be consequences, meaning they will be taxed very heavily at the border if they want to leave, fire all their people, make product in different countries and then think they’re going to sell that product over the border, which by the way will be a very strong border. Very strong border. Believe me.”