The Truth About Trump and Manufacturing Jobs: Part 2

Posted in BioBusiness, Uncategorized

While Trump has been on a so-called victory tour to convince his supporters that he fulfilled (sort of) one campaign promise to keep jobs in America (middle America really), he set a couple of dangerous precedents.

First, every US CEO worth his/her salt will be calling Trump to negotiate or renegotiate deals for tax breaks, incentives and guarantees of government contracts to keep manufacturing jobs in America.  And ,while Trump/Pence saved some jobs for Carrier employees (around 1000) another 1100 are still moving to Mexico. Surprisingly, to keep less than 50% of Carrier’s low tech manufacturing jobs in Indiana, Pence, Indiana’s governor, had to guarantee Carrier an additional $7.0 million in tax breaks and incentives. Great deal for Carrier and those employees, but not such a great deal for other Indiana citizens who may have to pay more to pay for the tax shortfall.

Second, Trump has other things besides jobs to focus on; like foreign affairs, national security, legislation and other Presidential things that he so desperately wanted to do after becoming President.  Because of this, Trump does not have the time to intervene and negotiate with every US company that threatens to move jobs (manufacturing or otherwise) to lower cost labor markets. His intervention in the Carrier situation set a bad precedent and pretty much invited other companies to see what kind of deal that they can get to keep jobs in the US (kind of sounds like corporate blackmail to me).

Put simply, Trump engineered this deal and set out on his victory tour to placate his supporters in the heartland and also to draw attention away from his cabinet picks and campaign promises that he made and will never fulfill.

Trump needs to start thinking more presidentially and finally  understand that governments cannot be run like businesses.  There is more to running a government than making money.

Until next time,

Good Luck and Good Job Hunting