As you may recall, one of Trumps major campaign messages to his followers was to”force corporate America to focus on job creation at home rather than abroad.” In my opinion, Trump’s possible success as President is and will continue to be inextricably linked to fulfilling his promise to create new jobs for out-of-work or underemployed Americans. That said, Trump will do or say anything, including taking false credit, to show his supporters that he can indeed create US jobs.
Yesterday, Trump announced:
I was just called by the head people at Sprint, and they are going to be bringing 5,000 jobs back to the United States,” Mr. Trump told reporters at his Mar-a-Lago estate in Florida. “They have taken them from other countries. They are bringing them back to the United States.”
Later in the day, Sprint said that the jobs were part of a previously announced commitment by Japan’s Soft Bank, which owns a controlling interest in Sprint, to invest $50 billion in the US and create 50,000 new jobs. As you may recall, shortly after electoral college win, Trump met with Masayoshi Sun, the CEO of Softbank who made the announcement and quickly took credit for the announced investment. Interestingly, the investment and job creation plans predated the election. Put simply, the deal was forged long before Trump got involved.
Not withstanding Trump’s penchant for mendacity, it is important to note that since the election, Sprint stock price has risen by 40%, partly on the hopes that it will be acquired by its rival cellphone carrier T-Mobile. While the Obama administration frowned upon telecom mergers because of anti-trust concerns, Sun and his investors believe that the Trump administration may look more favorably on any potential deals with T-mobile or other players in this sector.
Moreover, last January, as part of a restructuring effort, Sprint cut 2,500 jobs in call centers throughout the US and its corporate headquarters. This means that there will be a net gain of only 2,500 new Sprint jobs in the US if the announced positions are ever created or filled (supposedly by the end of fiscal year 2017). In any event, if a merger ultimately does take place between Sprint and T-Mobile, there are likely to be massive job cuts which typically occur after most mergers to reduce duplication of effort at both the technical and administrative levels.
Sadly, it is becoming increasingly evident that Trump is willing to lie or take credit for deals that have little or nothing to do with him when it comes to job creation (or anything else for that matter). To that point, be wary of anything Trump says or does when it comes to job creation during his administration. When the smoke clears and mirrors are removed, any announced job “deals”are likely to be in the best interests of corporate America; not hard-working or job-seeking Americans.
Until next time….
Good Luck and Good Job Hunting!!!!!!