UPDATE II: "[T]here is a whiff of Putinism in the combination of bribery and menace that may have affected Carrier’s decision — the bribery of tax breaks, the menace of potential lost defense contracts for Carrier’s parent company, United Technologies. . .
It may be appealing as a model to America’s president-elect, too.
The problem is that it doesn’t work. Russia’s economy is shrinking, year by year, and no matter how many factory directors Putin humiliates, it won’t start growing again without structural and political reform.
The U.S. economy has challenges, including the loss of manufacturing jobs and the insecurity many workers experience. But it is far healthier than Russia’s, with steady economic growth, low unemployment and a far, far higher standard of living.
A key reason is that the U.S. economy is governed by laws, not by the whims of the nation’s rulers."
Read the Washington Post, Trump’s Carrier deal is right out of Putin’s playbook.
Read also the Washington Post, Trump’s Carrier deal could permanently damage American capitalism.
UPDATE: "Donald Trump promised to punish U.S. companies that ship manufacturing jobs out of the country. Instead, judging from the way he has handled the Carrier Corp. matter, he plans to reward them. Quite handsomely, in fact.
As should be standard practice with Trump, pay attention to the substance, not the theater. United Technologies, the parent company of air-conditioner-maker Carrier, has been threatening to move more than 2,000 jobs from Indiana to Mexico. Trump addressed this specifically during his campaign, vowing to hit the company with a punitive tariff.
'If they’re going to fire all their people, move their plant to Mexico, build air conditioners, and think they’re going to sell those air conditioners to the United States — there’s going to be a tax,' Trump said on 'Meet the Press' in the summer. 'It could be 25 percent, it could be 35 percent, it could be 15 percent, I haven’t determined.'
As it turns out, how about zero percent?
In fact, how about giving United Technologies state tax breaks worth about $7 million over the next decade, in exchange for moving only 1,300 jobs to Mexico? That’s basically the deal offered by Trump and Vice President-elect Mike Pence, who happens to be governor of Indiana (and thus in a position to offer the tax relief). . .
The company still gets to lay off many of the targeted Indiana workers and replace them with much cheaper Mexican labor. It gets partial compensation from the state government. And instead of worrying about a potential tariff, United Technologies can anticipate a major reduction in the federal corporate tax rate. That’s something Trump promised on the campaign trail — and also, reportedly, in a recent phone call with United Technologies chief executive Greg Hayes.
In a Post op-ed, Sen. Bernie Sanders (I-Vt.) put it this way: 'Just a short few months ago, Trump was pledging to force United Technologies to 'pay a damn tax.' .?.?. Instead of a damn tax, the company will be rewarded with a damn tax cut . Wow! How’s that for standing up to corporate greed? How’s that for punishing corporations that shut down in the United States and move abroad?'
So imagine you’re a CEO who wants to send, say, 5,000 manufacturing jobs overseas. Having learned from the Carrier example, you might begin by announcing that unfortunately you are forced to eliminate 10,000 jobs because of the crushing tax burden. Even if you really want to move the jobs to Vietnam or Kenya, just say you’re looking at possible sites for a new plant in Mexico. That’s sure to get Trump’s attention.
When Trump calls offering tax breaks or enterprise zone incentives or free rounds of golf in Scotland, whatever goodies he tosses in, hold out for a while — then reluctantly, in the spirit of patriotism and Making America Great Again, announce you’ve agreed to cancel half of the 10,000 job cuts. You’d still be meeting your original goal of eliminating 5,000 jobs, only now you’d also have a lower corporate tax bill and a tee time at Turnberry.
The Carrier deal is just the latest piece of evidence suggesting that Trump’s populist rhetoric about championing the working stiff and cracking down on greedy globalist corporations was all a bunch of hooey."
Read the Washington Post, Trump will helm a government of, by and for corporate America.
Read also the Washington Post, Why lots of people think Trump’s deal to save 1,000 Indiana jobs was a bad idea.
The Republi-CON's new economic strategy -- bribe corporate America.
Read the Washington Post, Trump’s deal to keep Carrier jobs in Indiana includes $7 million in state subsidies.
Read also the Washington Post, Bernie Sanders: Carrier just showed corporations how to beat Donald Trump.
Republi-CONs are hypocrites, they were/are livid whenever there was/is government intervention into private enterprise.
Remember their claims in response to the financial crisis -- that Obama used corporate subsidy to distort the 'free markets' -- and demanded a balanced budget instead.
Now, government debt for corporate welfare is fine.