The numbers always tell the story. The carrier deal with Trump and Pence are a case in point. The deal actually was crafted by Indiana Gov. Mike Pence.
$7 million. The amount Donald Trump added to the deficit. That was the amount gifted to Carrier. UTC’s incentive is still a mystery.
Carrier is owned by United Technologies, UTC, a large defense contractor with annual revenues in 2013 of $62.3 billion, $65 billion in 2014 and $56 billion in 2015. net profits in 2015 were $7.6 billion. The company is on track to match or exceed that in 2016.
Carrier’s adjusted operating profit was $634 million in the first quarter 2016, or an projected $2.4 billion for the year
10% or about $6 billion in UTC’s profits derive from Federal US government tax Dollars.
UTC’s Pratt and Whitney division reaped another $400 million in Connecticut tax breaks for “a few hundred jobs” according to the Hartford Courant newspaper. http://articles.courant.com/2014-02-26/business/hc-malloy-united-technologies-east-hartford-20140226_1_united-technologies-corp-utc-aerospace-systems-connecticut-home
UTC’s Courier Division in Indiana receives more than $1.2 million in local property tax forgiveness annually. Carrier also sees hundreds of thousands from Indiana taxpayers in a job training loophole. The deal also includes $700,000 in state tax breaks offered by the Indiana Economic Development Corporation, a Pence-controlled quasi-public entity that doesn’t require legislative approval for its deals.
Carrier reports an annual savings of $65 million, or less than 2% its annual profits in relocating its circuit board operation from Indiana to Mexico. Carrier workers earned an average of $73, 840 annually, including salary and benefits.
Mexican manufacturing workers earn an average of $2.10/hour. The official national average is stagnate at $2.10 USD, or $4368 annually, collapsing from a high in January 2015 of $3 USD. According to tracking data from http://www.tradingeconomics.com/mexico/wages-in-manufacturing.
Mexico defines poverty as living on no more than 2,329 pesos a month ($183) in cities, and 1,490 pesos a month in rural areas. A 1 bedroom apartment in Mexico City averages 6000 Pesos/month or about $525 USD, or almost $200 over the average monthly manufacturing wage. Add another $45 monthly for utilities… Source: https://www.numbeo.com/cost-of-living/in/Mexico-City
According to Economist Paul Krugman: If Trump did a Carrier-style deal every week for the next 4 years, he could bring back 4% of the manufacturing jobs lost since 2000.
Trump would have to do one Carrier-sized deal a week for 30 years to save as many jobs as Obama’s auto bailout- also from Krugman.
During the 2004 election cycle, UTC was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561. 64% of UTC’s 2004 contributions went to Republicans. UTC was also the sixth largest donor to federal candidates and political parties in the 2006 election cycle. 35% of those contributions went to Democrats; 53% of the funds were contributed to Republicans. In 2005, United Technologies was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush
Bernie Sanders commented on the deal, saying that, “Trump has endangered the jobs of workers who were previously safe in the United States. Why? Because he has signaled to every corporation in America that they can threaten to offshore jobs in exchange for business-friendly tax benefits and incentives.”