Donald Trump is touting a “deal” he made to get Carrier to keep jobs in the United States, but the details of the transaction revealed he got taken to the cleaners, and Indiana taxpayers are on the hook.
Carrier will get a sweetheart deal worth $7 million in tax breaks, and in exchange they will still be sending jobs overseas, while keeping 850 of them in Indiana. The agreement works out to $7,000 per worker, expensed to Indiana taxpayers.
By comparison, President Obama worked out a loan with General Motors in which taxpayers were paid back in full, with interest. The Obama deal for GM saved over 1.5 million jobs.
When Obama put together the auto rescue plan, conservatives complained that it was socialism and unprecedented, but were soon silent as the U.S. auto industry roared back to life, selling cars at a record level and pumping billions of dollars into the economy as cars were sold to consumers in a recovering economy.
Trump and Pence plan to travel to the Carrier location in Indiana for a public relations event, but are unlikely to get into the details of how they worked to bribe the company and pulled the wool over the eyes of voters and consumers.
Trump was taken to the cleaners, as Sen. Bernie Sanders explained in a Washington Post op-ed.
Originally Trump said he would punish companies for taking jobs overseas and charging Americans for those same products at a huge markup. But when he actually got behind the wheel, he caved in almost immediately to corporate demands. As he would describe it, he “choked” like a “loser.”
Now other companies now know that Trump is such a bad negotiator they can simply threaten to take jobs offshore, and his administration will cave in and bribe them – at extraordinary expsense – to keep working domestically.