Trump Takes Twitter Aim at Companies Looking to Move Jobs Abroad

It was a political and public relations triumph: Trump said he’d bring back manufacturing, he’s saving 1,000 jobs and he’s not even president yet.

As Robert Shapiro, former undersecretary of commerce for economic affairs under President Bill Clinton, put it, “We certainly don’t want to take as our guide to creating jobs special tax breaks for a company that earned $7.5 billion in profits past year, got $6 billion in defense contracts, paid its top five executives $50 million, in order to preserve 1,000 out of 2,100 jobs”.

I will give credit where it’s due. Seven hundred will move from a separate plant in Huntington, Indiana, which will be closed.

“We have not had any contact with the new administration”, said Mondelez spokeswoman Laurie Guzzinati, adding that the Chicago baker remains an “important part of our manufacturing network” and that it continues to make Oreos at three United States factories.

Donald Trump is proving to be a savy negotiator in the eyes of many. “The problem with our rigged economy is not that our policies have been too tough on corporations; it’s that we haven’t been tough enough”.

Carrier, a unit of United Technologies Corp UTX.N, said on Thursday that state officials had pledged $7 million in tax breaks to encourage the firm to keep around 1,100 jobs in Indianapolis after Trump stepped in to protect U.S. workers.

The announcement marked an extraordinary accomplishment for Trump, who had railed against Carrier’s plans to shift jobs to Mexico while campaigning.

Mr Ross also said that blanket double-digits tariffs on goods from Mexico and China – which many economists warned could spark a damaging trade war – would only be used as a last resort. “He could have just said that and walked away”. They are still relocating production from Indianapolis to Mexico and one of its suppliers, United Technologies Electronic Control, also owned by UTC, is closing a plant in northern Indiana. I’m not an economic expert, but $7 million for 800 jobs seems like a really bad deal to me. When companies make good business decisions, sometimes the pain of laying off American workers is outweighed by the benefits of increasing profits, paying more in taxes and hiring more Americans in other parts of the (growing) business. They must pay back all of the tax breaks and other corporate welfare they have received from the federal government. Vice President-elect Mike Pence had the power then as he does now as governor. “This was. a promise that he was going to make us and I believed in it”.

The reversal is great news for the Indianapolis workers who get to keep their jobs, at least for now. “The gap left open by one investor will be filled by another investor”. And we’re giving this company $7 million in tax money for them to do this.

He doubled down on previous claims he will instate a 35 percent tax for those companies wanting to sell their products in the US, and also offered another incentive to keep them in the country: The companies, he tweeted, will be “able to move between all 50 states, with no tax or tariff being charged”.