Many of the people he’s giving the nod to to staff his administration make the previous ties between corporations/wall st and DC look like child’s play.
The unresolved question is if the Trump campaign platform is executed, or it falls back into corporatism. There is some cause for optimism. I am well familiar with Wilbur Ross; he’s been talking about how the “economy” has been screwing the working class for some years now. Many of Wilbur’s investments are manufacturing industries, and it does not make him happy to have to produce in China because US tax and regulatory policy encourage him to do so. Tillerson is point man on the last large manufacturing sector in America that still employs primarily Americans. So, we’ll see where this goes.
The Carrier deal is a dangerous precedent that could actively encourage corporations to threaten to move jobs out of the country by showing they can earn a nice incentive at the taxpayers’ expense.
It’s not a precedent at all. Corporations have been threatening movement to negotiate abatements for decades. What’s new about the Carrier deal is that Carrier let themselves get screwed, giving up 65M in potential revenues for a paltry 7M in abatements. Indiana tried to get that deal done alone prior to the election, but would have had to come up northward of 40M to get it done. For a state budget, that’s a deal breaker. With the bully pulpit of the president behind the deal, Carrier took the 7M and was probably glad to do so. And in the process, the state kept about 65–80M in tax revenue it otherwise would have lost. I’ll do that deal every day of the week.
However, if you can get reduce the negative incentives (tax, regulation) to offshore, then the government is put in a stronger negotiating position, of course.
AND doesn’t do anything to protect those same workers or similar workers from the very real and present threat of automation.
Of course. Purdzer was on CNBC yesterday and said exactly this, which I never thought would be uttered from a CEO’s mouth, that the government needs to provide TIME for the economy to adapt to major dislocations caused by technology. Call me a Luddite if you wish, but if the government permits every trucking company to move immediately to driverless trucks the day they are approved for use, they are stark raving mad; another 1.5 million familes earning a middle-class living are displaced overnight. There needs to be a timed phase in of new technologies to allow for retraining. Interestingly, we still have a shortage of diesel mechanics in this country, and they earn….a pretty nice working class wage. Give these guys time to retrain before you kick them all out of the cabs. It doesn’t make you a Luddite to say “let’s go slow” every now and then, considering how fast automation can dislocate workers.