If you understood just basic economics then you would have understood one thing: the Trump-Carrier deal would lead to higher prices for Americans. And, well, that is what has happened.
United Technologies Corp., Carrier’s parent company, announced that it will raise prices for its heating, ventilation and air conditioning products by up to five percent beginning January 1, 2017. The measure was agreed a week before the Trump deal was completed.
The Daily Wire explains the move:
“The fact that the decision to raise prices came before the deal with Trump was made means little; Carrier knew what was coming and acted accordingly. Once Trump was elected, Carrier knew it had to act quickly, as Trump had threatened Carrier as far back as last February…”
Trump had ostensibly warned that if the likes of Carrier and other U.S. companies would leave the country then they would pay a tax.
Last year, Carrier announced that it was going to shut down its factory in Indianapolis and relocate to Mexico in order to save $65 million. This would have resulted in the loss of 1,400 jobs. In one of the first major public relations stunts, Trump was able to get Carrier to keep the facility in Indiana – though, 1,000 jobs are still heading to Mexico – by providing corporate welfare to the tune of $7 million over the next decade.
Now that Carrier has to contend with higher labor costs, other regulatory factors and a lack of demand for furnaces, the company had to raise prices so it can afford to operate within the borders of the U.S.
Again, a case of simple economics would have benefited both the U.S. and Mexico if Carrier walked across the southern border.
Proof that Carrier was never going to pass on any savings from moving jobs to Mexico. !,300 jobs in the A/C dept are still going to Mexico. The jobs saved are in the Furnace dept. Not Trumps fault prices are going up, it is free enterprise that everyone loves – they are free to charge us what ever they want.