It’s no secret that Donald Trump wants American businesses to keep jobs in the U.S.
Our nation’s economy has been spiraling downward during the Obama Administration. Recently, Trump has been talking with Carrier. Looks like he just fired Mexico.
Keeping His Promises
Just recently, Donald Trump posted a short video on his Facebook page, outlining plans for his first 100 days in office. Unemployment rates are skyrocketing as American jobs are lost, so businesses can increase profitability. Hoping to improve their bottom line, manufacturing companies are opting to reduce labor costs by moving their operations to places like China and Mexico.
But, with cheap labor comes poor quality. This is a lose-lose scenario for consumers and the economy. However, high corporate taxes and overregulation have made it impossible for many companies to continue operating stateside. Some businesses cannot afford to stay or leave, so they just close their doors. Donald Trump is changing all this.
High Taxes and Too Many Regulations
According to the Tax Foundation, the United States has the third largest corporate tax rate in the world. At 39%, only Chad and the United Arab Emirates are higher. The worldwide average tax rate, adjusted for GDP, is only 29.8%
The cost of unnecessary business regulations is staggering as well. A research study from the Heritage Foundation, revealed that “Government regulation costs at least $8,000 per household, and may reduce national output by as much as $1.1 trillion per year.” In addition, regulations at the federal, state, and local levels are costing the U.S. millions of jobs each year.
Trump Understands Business
Donald Trump is a savvy businessman. He knows that penalizing companies for moving production out of the country is not enough. Business is about making money and he understands that he must make it profitable for companies to stay. This means lower taxes and less regulation. And his plans are already working.
Just a few weeks ago, after several meetings with Bill Ford, Trump announced that production of Ford’s MKC will not be moving to Mexico. Instead, production of the popular SUV will remain at the Louisville, KY plant. In a joint statement issued by Ford and UAW, Vice-President Jimmy Settles, he cited “changing business conditions” as the reason for their decision.
Carrier Will Keep Jobs In Indiana
Carrier’s parent company, United Technologies, has been planning to move 2,000 jobs from their facility in Indiana to Mexico. This announcement gave Trump plenty of talking points during his campaign. However, after several closed-door meetings between Trump and UT, a deal has been struck.
President-elect Trump, along with Vice President-elect Mike Pence, plan to travel this week to the Carrier plant in Indianapolis, to announce that the majority of jobs will now remain in Indiana. Carrier confirmed the impending announcement on Twitter:
We are pleased to have reached a deal with President-elect Trump & VP-elect Pence to keep close to 1,000 jobs in Indy. More details soon.
— Carrier (@Carrier) November 30, 2016
This is announcement is a victory for American workers. It brings us one step closer to stabilizing the economy and restoring industry. Donald Trump is almost two-months away from moving into the oval office and he is already well on his way to “Making America Great Again.”
How do you think keeping American jobs stateside will impact our nation’s economy?