President-elect Donald Trump has been strutting around the country touting some extra cockiness after taking credit for “saving” over 1,000 jobs which he claimed the air conditioning company Carrier planned to move to Mexico before he intervened.
“‘Companies are not going to leave the United States anymore without consequences,” Trump told workers at the Carrier plant. ‘These companies aren’t going to be leaving anymore. They aren’t going to be taking people’s hearts out.”
Trump added, “I will tell you that United Technologies and Carrier stepped it up and now they’re keeping -— actually the number’s over 1,100 people, which is so great.”
Meanwhile, the chairman of Carrier’s parent company (United Technologies) had no qualms about playing along.
“United Technologies chairman Gregory Hayes, said, ‘Today we can talk about 1,100 jobs in Indiana going forward. So I’m pleased to announce that we have decided to keep Carrier [in] Indianapolis.'”
But, like Trump University and other shady Trump-branded promotions, the “Carrier deal” doesn’t hold up very well to close scrutiny.
Sources close to the deal that was announced late Wednesday confirmed with ABC News that while 800 jobs at the Carrier plant in Indianapolis would remain, another 600 from the same plant will still be headed to Mexico.
And as for the other 300 white collar jobs, that Trump supposedly “saved,” Carrier never had any plans on moving those jobs to Mexico.
Trump’s deal was more likely the result of the groundwork laid out by his Vice President-Elect, Mike Pence, who had been in negotiations with Carrier well before Trump probably ever heard of the company.
Pence made the unusual decision to stay on as Governor even after being named the head of Trump’s transition team (which is currently a disaster).
At the time, most pundits couldn’t figure out why Pence would want to remain on as governor since he had so much on his plate with the chaotic transition as well as his new duties as vice president-elect.
However, after Trump’s announcement, Pence’s motives for staying in office started making more sense. Pence stayed on so he could complete the deal and allow Trump to swoop in and steal the credit.
After all, it was the Indiana governor, not Trump, who had the authority to guarantee 7 million dollars in tax incentives to the Career corporation in exchange for keeping those jobs stateside.
Ironically, the tax incentives Pence generously gave to Carrier sounds a lot like the same incentives Trump spat on during his campaign. At one rally, the then-presidential candidate called the idea of giving companies tax deals and loans, “crazy.”
“‘I’ve been watching these politicians go through this for years,’ Trump said at a rally in Wilkes Barre, Pennsylvania, on October 10. ‘I’ve been watching them give low-interest loans. I’ve been watching them give zero-interest loans. These companies don’t even need the money, most of them; they take the money. There were a couple of instances where geniuses with great lawyers gave them money and then they moved anyway…I mean, the whole thing is crazy.'”
He had similar sentiments at a rally in Erie, Pennsylvania, where he called politicians “dumb” for bribing corporations into keeping jobs in the U.S.
“‘Over the years, I’ve watched, for years, for 10 years, for 12 years, for 15 years, beyond Obama, and I’ve watched as politicians talked about stopping companies from leaving our states,’ Trump said. ‘Remember, they’d give the low-interest loans. Here’s a low-interest loan if you stay in Pennsylvania. Here’s a zero-interest loan. You don’t have to pay. Here’s a this. Here’s a tax abatement of any kind you want. We’ll help your employees. It doesn’t work, folks. That’s not what they need. They have money. They want to go out, they want to move to another country, and because our politicians are so dumb, they want to sell their product to us and not have any retribution, not have any consequence. So all of that’s over.'”
During the campaign, Trump also threatened to impose a 35 percent tariff on Carrier’s units should they move those jobs down to Mexico.
“‘We won’t need so much flexibility for other companies because we are going to have a situation where they’re going to know, number one we’ll treat them well, and number two there will be consequences,’ Trump said. ‘Meaning, they’ll be taxed very heavily at the border if they want leave, to fire their people, leave, make product in different countries and then think they’ll sell that product over the border.'”
However, despite Trump’s (Pence’s) best efforts (bribe) aimed at keeping Carrier jobs in Indiana, the company still plans to move more than 1,000 jobs down to Mexico.
ABC News reports that the United Technologies Electronic Controls factory in Huntington will offshore 700 jobs, and the Rexnord Corporation ball barrings factor in Indianapolis will do the same with 350 jobs.
Despite those pesky little facts, Pence still lauded the Carrier deal as a prime example of how he and Trump will save American jobs.
“‘This is a great day for Indiana and it’s a great day for working people all across the United States of America,’ Pence said at the rally before introducing Trump. He added that the Trump team was “grateful” that Carrier will now be able to, ‘Stay and grow right here in America.'”
So the Governor thinks that saving 800 out of 1,650 jobs while paying a corporation $7 million of Indiana taxpayer money (which they can then keep and move those jobs later anyway) constitutes a “great day for working people.”
It’s more likely that Pence’s seven million dollar band-aid will quietly fall off sometime in the future leaving those 800 workers unemployed, but that’s a concern for later.
For now, Trump and his supporters are cracking open a couple of bottles of Trump wine, firing up a few Trump steaks, and celebrating this “tremendous win” for America.
Featured image via YouTube