President-elect Donald Trump has succeeded in retaining the Carrier Corp. in US shores. It would mean 1,000 jobs to continue for the Americans. The company has decided to transfer operations in Mexico to save operational cost. However, the new president encouraged the air-conditioning company to stay with promises of tax incentives and incentives.
This was seen as an achievement for the incoming administration. However, this was not seen as beneficial for the country by some critics of the Trump administration.
They have expressed concerns about the deal and the arrangement's effect for future negotiations between big enterprises and the government according to Time.
Former presidential candidate Bernie Sanders wrote in Washington Post, "In essence, United Technologies took Trump hostage and won." The company gets 10% of its yearly $55 billion revenues from government contracts. Aside from it, it will also get financial incentives to remain in the U.S.
Sanders further explained that Donald Trump put danger on the jobs of Americans who are safely working. It is because big corporations in the country can just threaten the government that they will go offshore just to get the government incentives.
An economist also agreed to Sander's opinion saying that there will be negative consequences. It the Trump administration will always step in to prevent companies from transferring, it may politicize many business decisions. "There might be an increase in backroom deals and crony capitalism", said economist Tyler Cowen. Old plants will continue to thrive with their obsolete modes of production thereby sowing down production and limiting progress.
Carrier plant employees are more than happy for the continued employment. They were worried for their families when news of transfer to Mexico surfaced. Now they were relieved and grateful to the new president. However, some are skeptical because they did not know the details of the negotiations.
Moreover, most of the employees are happy to celebrate the holidays with their jobs intact. They simply pray that everything will be favorable to them in the Donald Trump government.
