Recently it has been reported that President Elect Trump has prevented job loss to Mexico, from the U.S. employer Carrier.
a) "The art of the deal".
Trump isn't standing at the border with a loaded gun refusing Carrier the right to leave.
To get something, we may conclude Trump offered something. So what was the offer?
b) On today's WAMC's The Round Table the following was suggested:
- We don't know the details. How many jobs were ostensibly saved? Current informed estimates range around 1,000.
- In the U.S. the hourly wage averages ~$21 / hr. In Mexico ~$3. / hr.
By that arithmetic, Carrier would have saved over $37 $million / year on salaries alone.
Factor in less priggish Mexican government regulations on work rules, environment, etc. and it may be well over $100 $Million per year Carrier stood to gain by moving.
- SO -
What did Trump offer?
Trump supporters will argue the U.S. tax payers benefit. UNDENIABLY TRUE !!
The question is not whether or not there will be a benefit.
The question is whether or not there will be a NET benefit. Will this end up costing us more than we gain?
Trump can make the boast that he save jobs either way; whether it's a net $gain, or a net $loss for U.S. tax payers.
But what's the real story?
Some estimates indicate saving these ~1,000 jobs averaging $43K * $salary per year may end up costing $U.S. $70K per year per job.
So what's the REAL story?
* At 15% income tax rate that's ~$6500.oo / year IRS revenue.
note:
This topic inspired by: Facist bullies company! @ http://www.justplainpolitics.com/showthread.php?75653-Facist-bullies-company!/page3
a) "The art of the deal".
Trump isn't standing at the border with a loaded gun refusing Carrier the right to leave.
To get something, we may conclude Trump offered something. So what was the offer?
b) On today's WAMC's The Round Table the following was suggested:
- We don't know the details. How many jobs were ostensibly saved? Current informed estimates range around 1,000.
- In the U.S. the hourly wage averages ~$21 / hr. In Mexico ~$3. / hr.
By that arithmetic, Carrier would have saved over $37 $million / year on salaries alone.
Factor in less priggish Mexican government regulations on work rules, environment, etc. and it may be well over $100 $Million per year Carrier stood to gain by moving.
- SO -
What did Trump offer?
Trump supporters will argue the U.S. tax payers benefit. UNDENIABLY TRUE !!
The question is not whether or not there will be a benefit.
The question is whether or not there will be a NET benefit. Will this end up costing us more than we gain?
Trump can make the boast that he save jobs either way; whether it's a net $gain, or a net $loss for U.S. tax payers.
But what's the real story?
Some estimates indicate saving these ~1,000 jobs averaging $43K * $salary per year may end up costing $U.S. $70K per year per job.
So what's the REAL story?
* At 15% income tax rate that's ~$6500.oo / year IRS revenue.
note:
This topic inspired by: Facist bullies company! @ http://www.justplainpolitics.com/showthread.php?75653-Facist-bullies-company!/page3