To the workers at Carrier who will keep their jobs, the Trump/Pence deal to persuade Carrier to export fewer jobs away from Indiana is big and good news. In the larger scheme of things, however, this is mostly political theater. During the campaign, Carrier’s exit became symbolic of a larger problem – the loss of blue collar, manufacturing jobs that paid well. The deal addresses, to some extent, the symbol but is probably a drop in the bucket in terms of the real issue.
The Wall Street Journal is reporting that Indiana officials have agreed to give United Technologies $7 million in tax breaks over a decade.
United Technologies will invest roughly $16 million in its Indiana facilities, according to the Wall Street Journal.
The deal would save 800 jobs from the Indianapolis furnace plant and 300 research and development positions that were not going to go to Mexico, the Wall Street Journal reported.
The media coverage of Carrier’s exit and now its coverage of this deal is probably out sized. Trump and his supporters will crow about how he’s delivering on promises. Trump’s detractors will complain that the incentives create a moral hazard for companies to reap financial incentives by threatening to move their companies (not unlike what sports franchise owners do with stadium deals, it occurs to me.) Both sides will (probably with justification) accuse the other of hypocrisy.
Around and around we go.



