Today Bernie Sanders slams President-elect Donald Trump for giving tax cuts to a company that was not even on the verge of going bankrupt. In fact, just two years ago they gave a former CEO a golden parachute as a gift, worth $172 million dollars.
Sanders says that now companies that were not even thinking of shipping jobs to Mexico are going to threaten to do so in order to get tax goodies.
Bernie Sanders: Carrier just showed corporations how to beat Donald Trump
You know, that is an interesting perspective, and may even have some merit. However it still does not bode well for the Dems. Here's why- The saying is perception is everything. If people perceive DT is savings their jobs it doesn't really matter if their job was never in danger. Worse yet for the Dems, giving tax incentives to corporations also helps him with the business world. Yeah, this could be a double whammy smoke screen for the Libs. I see now why Libs hate DT so much. He beats them at their own game.
Clearly, you don't know what you are talking about. Let's break it down into dollars and cents:
Carrier is owned by United Technologies. United Technologies has a revenue of over 56 billion a year.
10% of that business goes to the United States government.That means the US does 5.6 billion in business with UTC a year.
Carrier has a revenue of 100 million a year. No mention of United Technologies Electronic Controls which is also in Indiana, has 700 jobs and is also moving to Mexico and is also owned by UTC.
Both plants are very profitable and pay their workers $23 an hour on average. But moving to Mexico, they could squeeze a tiny bit more money out of both those companies. So the Trump administration threatens the company, just a little, that maybe some of those 5.6 billion in government contracts might go someplace else.
Carrier revenue is less than 2% of the business UTC does with the federal government. Carrier, stay or go is still profitable. So Carrier stays.
UTC keeps it's 5.6 billion in government contracts. UTEC still moves it's 700 jobs to Mexico. Trump looks like a hero. Everyone is happy. And all it took was a little big government blackmail. Will it be that easy in the future?
Doubtful.
Those 700 from UTEC are already starting to protest. So is a thousand Trump's limit?
And Republicans hate government involved in business. How much more involved can you be beyond bribes and blackmail?
Oh, and did I mention, Carrier will probably now automate? Only the company is protected, NOT the jobs. Oops.