Instead of praising President-Elect Trump for this pro-domestic employment feat, some are coming out swinging against the President-Elect.Senator Bernie Sanders claims Trump “has signaled to every corporation in America that they can threaten to offshore jobs in exchange for business-friendly tax benefits and incentives.”
Where was this progressive loud mouth when President Barack Obama sent 400 million dollars in unmarked cash to Iran? Some called it a good diplomatic move, other alluded to the fact that it seemed more like ransom. What kind of precedent did this act make? However, I digress. Let us take a moment to think about this 7 million dollar tax incentive.
The seven million dollar incentive is over a ten-year period. This equates to 700,000 dollars a year. When we look at the fact that Carrier is now reporting that the total jobs saved is at 1100, which comes to just over $636 per employee per year. This is less than what it would cost taxpayers in entitlements if people lost their jobs. In addition, let us not forget, by saving these jobs, we potentially saved other jobs. Everyone’s job in the United States depends on the job of someone else. Without jobs, people cannot buy things. If people do not buy things, then this leads to more jobs lost and a bigger burden on the American taxpayer. In short, just by directly saving 1100 jobs, the President-Elect possibly saved other jobs indirectly.
Carrier also announced that they were going to invest more than 16 million dollars in renovating their plant in Indiana, which is also great news for the economy. Think about it. This spending also causes a positive domino effect on the economy. Carrier will hire a general contractor for this work. The general contractor will provide the labor and the materials. They will in turn need to purchase the material from a supplier. The cycle will continue. This wonderful effect will prove that the tax incentive will pay for itself.