Wednesday, December 7, 2016

Yes, Carrier Employees there is a Santa Claus - Sorta

When he comes down your chimney, he's going to take more than he leaves. The Trump exagerated details of the Carrier deal have finally been released. Trump exaggerated big league.
He ignored the United Steelworkers, handed a big tax break to management, then claimed an exaggerated victory.

His deal saved far fewer jobs than he claimed. Given his penchant for outright lying and exaggerated use of hyperbole is anyone surprised except for his good ole country boys. His deal will have a miniscule negative effect on the country and a larger and more negative effect on Indiana. Trumps deal bribed the company with $11 million in tax breaks for management. Ignoring the lower paid grunts will do nothing to stir up economic activity. What we have here is Reaganomics based on the theory of making the rich even richer with the spillover left for the low paid workers to grovel with each other for a pittance of the $11 million. It seems as no one remembers what happened in 1929 when the upper class never spent their increase on material goods made by the workers because there wasn't anything they needed. There wasn't anything the big guys could do with their cash except invest it in schemes to get even richer with even less work.

If Trumps deal with Carrier is a sign of things to come - and does anyone really doubt that it is - we are headed for some exciting things in the market.The best thing we can hope for is that the Carrier deal is nothing but typical Trump showmanship designed as an early campaign move for 2020. There is plenty of reading out there exposing its cosmetic nature. It has caught the attention of economists of both persuasion. Of course the Trumpketeers are already on the bandwagon and the common press will soon join them.