The Carrier Plant in Indiana

December 4, 2016 at 2:13 pm | Posted in Daily blogs and thoughts | Leave a comment

Before we all start patting each other on the back about saving American jobs, Trump’s “deal” with United Technologies regarding the Carrier plant in Indiana includes Carrier moving roughly 1,200 jobs to Mexico and closing its facility in Indiana.  That’s 1200 families impacted, 1200 people on unemployment, 1200 people no longer earning good salaries and paying income taxes.

First of all, I want to applaud our President-elect for working on keeping his campaign promises.  It’s about time someone shook up the system.  But I don’t think he went far enough.

The deal includes $7 million in financial incentives provided by Indiana –  special tax breaks for a company that earned $7.5 billion in profits last year, got $6 billion in defense contracts and paid its top five executives $50 million, in order to preserve 800 out of 2,000 jobs.

I can’t help but wonder: why do taxpayers have to give a company that earns $7.5 billion in profits an incentive?  What’s the problem, they can’t get by on only $7.5 billion?  Oh, wait a second, that’s $7.5 billion in PROFITS.  Their Gross Revenue for 2105 was $56.33 billion.  Now I understand why they have to lay off those 1200 workers: who can be expected to earn a living only making 56.33 billion dollars a year? Have you seen the cost of vegetables in the supermarket lately?

And they say Bernie Sanders was a socialist who wanted to redistribute wealth.

So a little definition of terms before I continue.  Carrier is owned by United Technologies.  So is a defense contractor named Pratt & Whitney.  So Carrier and Pratt & Whitney are fingers on the hands of corporate conglomerate United Technologies.

In April of this year, Pratt & Whitney got a $1.04 billion contract to sell 63 Jet engines at $16.3 million each to the Department of Defense.  At Pratt & Whitney’s profit margin of 22.5% on its products, the profit on that one deal alone is $225.9 million dollars.  Does that really sound like someone who needs a $7 million dollar gift from the American taxpayer?

I think a far better Trump deal would have been “It will be a lot easier for this administration to support your military sales efforts if you weren’t laying off workers to save your shareholders a few pennies a share.”  It’s disgraceful.

Before you say that Carrier and Pratt & Whitney are separate companies, let me say that if your left hand steals something in the supermarket, your right hand is equally guilty.  When caught, both hands are punished.  Nobody buys stock in Carrier, they buy stock in United Technologies.  That’s where the responsibility lies.

I don’t blame Carrier for taking advantage of the system, but as Candidate Trump so fondly said during the election, the system is rigged.  Companies that outsource American jobs overseas shouldn’t be allowed to sell products to the government.  After all, the government is “of the people, for the people,” not for the benefit of corporations.

Maybe the wall Trump wants to put up to keep Mexicans out should really be to keep American Defense Contractors in.


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