If Trump Imitates GOP Presidents, His Jobs Promise Will Fail
Within a day after Donald Trump’s triumphal visit to Indiana, where he claimed credit for “saving” 800 jobs at a Carrier factory, the Department of Labor released its first monthly unemployment report since his election victory — and one of the last that will come out during the presidency of Barack Obama. Together those two events illustrated the contrast between a real strategy for economic growth and the dubious gambit of a Twitter addict.
During his presidential campaign, Trump repeatedly warned that if he became president, companies moving U.S. manufacturing plants abroad would suffer punitive tariffs of 35 or even 45 percent when they tried to sell their overseas products here. More than once he specifically mentioned Carrier Corp., which builds cooling and heating units. After post-election conversations with company officials that included his running mate, Indiana governor Mike Pence, Trump declared that he had fulfilled his promise by “saving” those Carrier jobs.
Yet instead of punishing Carrier for taking most of its Indiana jobs to Mexico, Trump and Pence had actually rewarded the company with $7 million in state tax booty and guarantees of a big cut in its federal tax rate — plus any additional promises concerning the billions in Pentagon contracts held by Carrier’s parent company, United Technologies. Spending other people’s money, Trump did precisely the opposite of what he had promised — but appeared heroic for at least one news cycle. Read full post here