I wonder what Trump's concessions would be for this plant. He criticized apple directly in his campaign, and this plant would be a big win for him.
This is how it happens in China too. The article mentions that a Chinese city would help invest $8.7 billion, rather than the central state.
> On Dec. 30, Gou announced that Osaka-based subsidiary Sakai Display Products and the southern Chinese city of Guangzhou would jointly invest 61 billion yuan ($8.77 billion) in an advanced panel facility.
And Pennsylvania trade office is working with Foxconn on another plant.
> In addition to the proposed display facility, Gou said Foxconn plans a new molding facility in the U.S., with the state of Pennsylvania a possible site following investment discussions with local officials. A representative from the Pennsylvania trade office attended Foxconn's party Sunday.
It's typically not the exec branches job to set up those deals. But it is great that Trump is willing to get on the phone to help get the deals done, that's seems unprecedented in recent years.
Most likely Trump would be focusing on the trade policy more generally or working with congress to reduce federal regulations. The Dept of Commerce could help promote the idea of operating in America. As well as via the Treasury Dept to simplify the tax code. And Congress to reduce taxation. Again this would apply to all companies, or whole industries, and (most likely) not give any individual companies special benefits in return for opening up shop.
These programs should be open to all companies, not just the Teslas and tbe Apples of the world. Governors and Presidents should not intervene on behalf of a single company. That isn't capitalism.
That way if something does work better (like ending the drug war) in one state, there will be a ton of data to reference and eventually good ideas will be adopted by other states.
States like California are big enough to be their own small countries anyway.
This was basically the idea when the US was founded but the federal government has only grown and every 4yrs the presidency becomes more important and given responsibility for everything. So no wonder the exec branch is growing in power - the citizens keep expecting them to be responsible for everything. It'd also protect against Donald Trump's from happening, the whims of one man should never be so influential.
Carrier didn't get bags of cash to create a handful of jobs.
It's a thousand jobs at an average of $31 per hour in wages, not to mention benefits.
It's up to $7m in incentives spanning ten years.
The jobs are worth about $850 million to $1 billion in total compensation over ten years. The $7 million represents less than 1% of that value. The income taxes, sales taxes, local spending, etc, etc, etc. is worth drastically more to that community and the state than the tiny $700k per year incentive.
Even Forbes thinks it's bullshit: http://www.forbes.com/sites/eriksherman/2016/12/04/trumps-ca...
http://www.newsmax.com/Finance/StreetTalk/united-tech-donald...
Firt of all, it's much less than a thousand jobs if you discount the white collar managerial jobs that were never planned to be relocated. The number of overall jobs saved is around 800.
Of those 800, a significant number of them will be eventually automated or are already in the works. So your ten year figure is, in my opinion, a bit overly optimistic.
It was a symbolic show. Even if Trump did a Carrier-type deal every month for his entire presidency, it would be far less than one percent of jobs lost due to automation and offshoring in the past 20 years.