Wall Street Journal Slams Trump for Carrier ‘Shakedown’
The Wall Street Journal and Donald Trump are viewing his recent win over Carrier from different perspectives. The Wall Street Journal thinks that such deals will be bad for the economy and employment, whereas Trump perceives the opposite.
The Hill reports:
The Wall Street Journal editorial board on Thursday blasted President-elect Donald Trump, calling his deal to keep nearly 1,000 U.S. jobs from moving to Mexico from a Carrier plant in Indianapolis a “shakedown.”
The Journal said that keeping the jobs in Indiana is a short-term victory for Indianapolis workers, but in a piece titled “Trump’s Carrier Shakedown” it criticized the use of threats to get the company to keep jobs in Indiana.
The editorial argued that Trump’s successful negotiation with Carrier had more to do with threatening tariffs than with tax incentives provided by the state.
The editorial board wrote that Trump’s “real hammer is his threat to impose a tariff on Carrier imports to the U.S.”
“Mr. Trump’s Carrier squeeze might even cost more U.S. jobs if it makes CEOs more reluctant to build plants in the U.S. because it would be politically difficult to close them,” the Journal argued.
While the editorial viewed the Carrier deal as a “short-term political victory,” it argued that the effort will only hurt the workers in the future, and described the Carrier negotiation as a “big government cul-de-sac.”
“In that spirit, his Carrier shakedown is a short-term political victory that will hurt workers and the economy if it becomes the norm for the next four years,” the editorial concluded.
Trump took a victory lap in Indianapolis on Thursday, touting his efforts as a successful negotiation.
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