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The bad economics of Trump's Carrier deal
The Week ^ | 12/01/2016 | James Pethokoukis

Posted on 12/01/2016 1:04:51 PM PST by SeekAndFind

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To: HiTech RedNeck

What are you drinking tonight?
I’ll have some of what you are having.


161 posted on 12/01/2016 3:51:49 PM PST by Repeal The 17th (I was conceived in liberty, how about you?)
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To: SeekAndFind

Qhy not propose even smaller tax rates for any company who produces in the US


162 posted on 12/01/2016 3:52:42 PM PST by Phillyred
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To: Repeal The 17th

Any rejoinders less feeble than this?


163 posted on 12/01/2016 3:54:30 PM PST by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: Phillyred

That’s basically a tariff in negative terms.


164 posted on 12/01/2016 3:55:19 PM PST by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: Phillyred

That’s basically a tariff in negative terms.
[Not as if that had to be a bad thing]


165 posted on 12/01/2016 3:55:50 PM PST by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: elhombrelibre

You’re totally off base here. There is no perfect libertarian free market for Trump to muck up. If there were I might agree with you. The government has already placed it’s thumb on the scale through cronyism and excessive regulation. There’s NO chance that a competing business can fill the void left by offshoring... It only serves to perpetuate the greed fest.


166 posted on 12/01/2016 4:01:05 PM PST by Hugh the Scot ( Total War)
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To: Resettozero

Technology is the most dangerous enemy of USA manufacturing employment and wages - not foreign competition.

Since the bottom of The Great Recession in 2009, the total value of all goods manufactured in the USA has gone up 16%.

Since 2009, USA manufacturing employment has gone up just 7%.


167 posted on 12/01/2016 4:43:40 PM PST by zeestephen
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To: Buckeye McFrog

He also thinks there was some sort of “new” threat about the Federal contracts being lost. I guess he is unfamiliar with the “Buy American Act of 1933” that established Federal purchasing should always give preference to American made products. All Trump needs to do is dust it off and stop all the “waivers” that purchasing agents are allowed to do that have made it useless. Extend it to anyone receiving Federal funds and all those industries we have lost will have to come back to America — TV’s, computers, electronics, office equipment, construction equipment, steel, concrete — because the built-in customer base would be huge.


168 posted on 12/01/2016 4:56:46 PM PST by Kellis91789 (We hope for a bloodless revolution, but revolution is still the goal.)
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To: SeekAndFind
Those would be the carrots. Then there are potential sticks,

If you like your air conditioning; you can keep your air conditioning.

169 posted on 12/01/2016 5:02:59 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: InterceptPoint
Bottom line: Businesses pay NO taxes.

It is a mere cost of doing business and is PASSED on to the ultimate consumer as a higher cost of the final production.

170 posted on 12/01/2016 5:06:40 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: HiTech RedNeck
But what if they are still generating something net for the state compared to if their former territory was but an empty field?

That's fine, but don't kid yourself. In the absence of Indiana cutting spending the taxpayers just gave Carrier $7M.

171 posted on 12/01/2016 5:06:55 PM PST by semimojo
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To: central_va
I guess Freedom needs to take a back seat to lung cancer.

 
 
 
 
 
In 2012, the most recent year for which we have statistics available, 157,423 people -- 86,689 men and 70,734 women -- died from lung cancer in the U.S.
https://www.verywell.com/how-many-people-die-from-lung-cancer-each-year-2249414
 
 
CHOICE kills about a MILLION.
 
 
 
 
 

172 posted on 12/01/2016 5:11:27 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Hugh the Scot
Nonsense and bafflegab! Do the employees contribute anything to Indiana’s tax revenue? Do the unemployed?

The state just gave Carrier $7M without decreasing spending or employing any more people. Who do you think is going to pay that $7M?

I understand the argument that the alternative is worse, but people who think tax breaks to businesses don't cost the citizenry anything are wrong.

173 posted on 12/01/2016 5:11:40 PM PST by semimojo
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To: SeekAndFind

I love Larry Kudlow, but when jimmy comes on, I leave.


174 posted on 12/01/2016 5:12:31 PM PST by onona (Keeping the faith will be our new directive for the republic !)
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To: central_va
Companies move for dirt cheap labor. lower cost of production.
175 posted on 12/01/2016 5:12:42 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: SeekAndFind

It irks me when people point to automation as being the cause for the loss of jobs that are moving overseas. They are two separate issues. Obviously, if the jobs were eliminated by automation they would not be moving to Mexico or China, they would just be gone, period.

These people are thinking too small. They have no goals as to market share outside the US. What we should be focusing on is increasing productivity through automation, but instead of eliminating jobs, increase volume.

America can be the world’s factory again by hugely increasing production, reducing the cost per unit by reducing the labor per unit, and supplying the world. All while retaining the same number of workers at higher wages. There are still billions of people in the world that have no air conditioning, no vehicles, no TVs, no computers, etc. What we need to do is to reduce costs to where those people can be customers of American goods. That will REQUIRE automation to reduce the amount of high paid labor per unit and have the same number of workers producing five times as much product.


176 posted on 12/01/2016 5:12:43 PM PST by Kellis91789 (We hope for a bloodless revolution, but revolution is still the goal.)
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To: Thibodeaux
the purpose of business is to make a profit. The purpose of business is not to take care of your country men.

It's amazing how many miss this fact.

177 posted on 12/01/2016 5:14:44 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: Grampa Dave

Whoa gramps, where’s that from ? I like it


178 posted on 12/01/2016 5:14:44 PM PST by onona (Keeping the faith will be our new directive for the republic !)
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To: InterceptPoint
Would Carrier lower their prices if they moved to a lower cost labor market. Maybe. Or maybe they would just book it as higher profits.

Likewise...

Would Carrier lower their prices if they could buy steel at half the rate they pay now? Maybe. Or maybe they would just book it as higher profits.

179 posted on 12/01/2016 5:16:30 PM PST by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: semimojo
The state just gave Carrier $7M without decreasing spending or employing any more people. Who do you think is going to pay that $7M?

So then an across the board state tax cut, instead of a targeted one, you would be for?

180 posted on 12/01/2016 5:17:36 PM PST by FreeReign
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