Mexican official on Carrier deal: 'Trump is telling the truth' about saving US jobs

[The Nature Boy 7,659]

http://www.cnbc.com/2016/12/02/mexico-reacts-to-carrier-deal-trump-is-telling-the-truth.html

[Teddy B 17,252]

The company is still going to move 700 other jobs from Indiana to Mexico. And the company confirmed on Thursday that it got a multiyear, $7 million package from the state of Indiana in exchange for keeping 1,000 jobs there.

Since 2000, the United States has hemorrhaged around 5 million manufacturing jobs, according to NBC News. The Carrier workers in Mexico will make $3 an hour, compared with the $20 an hour paid to their U.S. counterparts, according to Reuters.

These deals are going to have to continue in order to make up for the difference in labor costs between the two countries, $17 per hour, per worker is a lot of dough to make up. Gotta wonder when these deals stop becoming lucrative for the US.

[bcking 3,157]

Carrier was supposed to save something like 65 million dollars per year in the move, and they were given 7 million dollars in subsidy as an exchange. There must be something else making up the other 58 million dollars. Likely threats regarding defense contracts with Carrier's parent company.

While it's great to keep jobs here, I agree I think the numbers just make it difficult to be sustainable. Corporations will act in their best interest financially, and the US can't really compete with countries that will perform the labour for about 10% of the cost of the labour in the US. This example was likely because of other pressures placed on the parent company. Trump may not be able to supply similar pressures to every company that wants to the leave the US.

[TBoneTX 45,299]

Another question is whether this is "crony capitalism." Shouldn't companies be free to operate in their own best interest? Too much governmental intercession can, before long, result in getting wound up in one's own underwear.