Carrier’s Move to Mexico Was Entirely Predictable

National Review ^ | 02/19/2016 | by Jillian Kay Melchior

[rlmorel]

Also, implicit in my last post, is that the government gives “tax credits” for things that do absolutely zero, zip, nada, to improve the functioning, viability, or well-being of a business.

As we see, there are companies that are going to fail for certain, and they get to apply for tax credits, knowing full well it isn’t going to help the company, but might get more money into someone’s pocket before the gravy train runs out.

It is quite different when a well-functioning company has to pay money it could use to improve itself into government tax coffers, and that money goes to companies that should die a natural death.

[joe fonebone]

but since 100% of companies that move to mexico are unionized plants I could be 100% right..

[9YearLurker]

“Connecticut’s Department of Economic and Community Development launched a valiant effort to save the failing company, offering a $1.4 million loan and promising to forgive $650,000 of that sum if ClearEdge could retain 17 jobs and create 80 new ones by 2017.”

More evidence that NR is no longer conservative in any meaningful way. CT under Malloy has repeatedly jacked up taxes for businesses and individuals alike—and then they play this crony capitalism game of trying to bribe specific companies to stay in their terrible business environment. Didn’t work when they tried to buy of GE either.

[#1CTYankee]

I worked for UTC for over 30 years, this is their trademark. Cutting costs while increasing profits is the ultimate goal of management.

I get that.
I started at Hamilton Standard and later with UTC Fuel Cells (which was renamed UTC Power)

Fuel cells/Power never made a profit, the CEO was intrigued with the technology and kept as afloat years.

Fast forward to a new CEO who was looking at all the divisions and decided we didn't fit in (not to mention we lost about 80 million dollars a year)

The company went up for sale but who would pay anything for a very unprofitable unit?, enter ClearEdge.

ClearEdge was a fuel cell company with a huge contract with Australia, they couldn't get their stacks (look it up if you desire) to function for months let alone years.

Enter UTC Power, we made Fuel cells for Apollo as well as the space shuttle without any problems.
It wasn't that we couldn't build a reliable, quality unit but that the cost was to high.

Ultimately we were given away (with 48 million in cash) to ClearEdge.
Upon the sale half of the workforce was released within two days.

I worked as an inspector, their were 9 of us and 11 Quality Engineers.
After the fallout their were 2 inspectors and 1 Q.E.

I found employment at another company in just 6 weeks and not only got a pay raise but collected severance for 5 months.

ClearEdge called me to come back a week after I started my new job, I had been in contact with a former coworker who told me the same losers they had running the company were still running it.
I guess you can't fix stupid)

Needless to say I turned down their offer and am still with my current employer.

Most ironic of it all is I am back in the building where I started as a contractor working at UTC Aerospace (new name but the same) as a Quality Engineer.

The bottom line, subsidies, tax credits and loans to private businesses don't work.
Sink or swim should always be the way and if your products are priced to high or the demand isn't there you sink.

In a closing note, the geniuses they hired from MIT (and other higher learning institutions) never fixed a design, never do this.

[central_va]

but since 100% of companies that move to mexico are unionized plants I could be 100% right..

I am not so spiteful against unions that I'd kill the US economy to prove a point. Carrier had a lot of options, there are many places in the USA that are anti union an very receptive to manufacturing and would have welcomed Carrier with open arms. Those places are mostly in the South but other places too. To go from Indiana to Mexico is a slap in the face to all Americans. I am praying that Mexico unionizes and has many, many strikes. Those companies deserve that. Ha ha.

[joe fonebone]

alright..... I will post this only once..

I have had the priviledge of supervising and having to use union labor...

the skilled trades, millwrights, ironworkers, electricians, pipefitters and the laborors...

were and still are some of the most highly talented, skilled and dedicated personnel I have ever dealt with..

I have nothing but praise for them..

the uaw, machinists, and the other non-skilled trade unions, I hold nothing but disrespect for..

these are the people that companies run to another country over, and until they are dispersed this country is on a one way course to ruin...

and in response to your other inquiry..

the great depression had 3 legs that made it happen..

one of those legs was an isolationist group think and a prohibitive tariff on most imports..

the resulting trade war was one of the three legs of the great depression..we lost and so did the rest of the world..

the greatest threat to the US is not mexico, or the willingness of companies to go there..

it is non skilled trades unions, and their anti-capitalist motives and motivations..

they are either hard core socialists or outright communists.....

end rant