Carrier deal: ‘ineffective’ and ‘very costly’

Posted by | December 1, 2016 16:26 | Filed under: News Behaving Badly Politics

Republish
Reprint

An expert broke down the effectiveness and cost of the kind of deal Trump made.

Carrier also confirmed in a press release on Wednesday night that it is getting economic incentives from the state, which “were an important consideration.” Various outlets reported that those incentives will amount to $7 million over a decade, or $700,000 a year…

Meanwhile, Indiana residents will shoulder the cost of the $7 million incentive package. But if past evidence is any guide, they won’t get much actual benefit for it.

Nathan Jensen, a professor at the University of Texas, Austin, has conducted his own studies of such economic incentive programs in Kansas, Missouri, Maryland, and Virginia, as well as reviewed the best academic work on the subject. What all the research shows is that somewhere between two-thirds and three-quarters of the incentives don’t actually have an impact on companies’ decisions to expand or keep jobs in a given state.

“The big question mark is whether or not you’re incentivizing companies to do something they were going to do anyway,” he said. But what he’s found is that they have very little impact on changing company behavior. “In aggregate, we can say that they’re pretty ineffective and they’re very costly.”

Click here for reuse options!
Copyright 2016 Liberaland
By: Alan

Alan Colmes is the publisher of Liberaland.

16 responses to Carrier deal: ‘ineffective’ and ‘very costly’

  1. Red Eye Robot December 1st, 2016 at 16:39

    Those carrier workers who would be collecting unemployment, will be paying about $1600 a year in state income taxes. They would be collecting about $20,000,000 in unemployment benefits the very first year. (1000 workers X $400 week X 52 weeks)

    • wpadon December 1st, 2016 at 17:10

      They have been paying into the system for decades, they would be collecting on the insurance policy and benefits are for 26 weeks, not 52. They stopped paying for 52 weeks years ago, When I was laid off by my company to get a more favorable contract for the company last year, I was only given 26 weeks of unemployment benefits. They waited until the 52 weeks of benefits expired before they laid off half the plant. When we agreed to pay for our health insurance and end our pension plan, they recalled everyone. Now it just take longer to get the work done.

    • whatthe46 December 1st, 2016 at 17:13

      not everyone of those employees will be eligible for unemployment and the rules have changed. they don’t get that much relief and must also be actively seeking employment with proof and will lose it if they don’t. furthermore, you seem to justify or accept the fact that this was bad for IN taxpayers as their taxes will increase and will eventually need to be bailed out. and you don’t know what their unemployment benefits would be so to suggest it 400wkly is nonsense.

      7million dollars to save 800 jobs is stupid. republiklans are idiot. LOL

      • amersham1046 December 1st, 2016 at 19:06

        The Republicans are not spending their money, they are spending your money, just hope you have deep pockets because there is more to come

        • whatthe46 December 1st, 2016 at 19:26

          pockets aren’t deep and i’m barely able to put my pinky in it. yep, we’re fk’d.

      • Red Eye Robot December 2nd, 2016 at 02:18

        False but nice try, (not really)
        If 7 million dollars to save 800 jobs is stupid, How stupid was $500,000,000 given to Solyndra?

        • whatthe46 December 2nd, 2016 at 02:30

          yes it was stupid.
          https://twitter.com/MaddowBlog/status/804515105622761472
          and your source?

        • bpollen December 2nd, 2016 at 03:55

          So Solyndra moved to Mexico? What? You been nippin’ at the cookin’ sherry, Pinkie?

        • robert December 2nd, 2016 at 04:53

          Any way you look at it Mexico will get their lions share of the carrier business and don’t forget the hanging sword of Damocles the boss gets to use if your a slacker on the job.

          What a beautiful situation for the corporation….

    • Mike December 2nd, 2016 at 06:46

      Except you can only get 26 weeks of benny’s and statistically, only 40% or less ever actually file (most just get another job)

  2. amersham1046 December 1st, 2016 at 17:47

    Oh there will be big Christmas bonuses for management, the employees will get a new coffee machine in the lunch room

  3. Suzanne McFly December 1st, 2016 at 19:10

    I am wondering why our current President has a say in this “deal”?

    • whatthe46 December 1st, 2016 at 20:41

      because it’s not coming from the federal gov. it’s coming from the state and right now pence is still the gov. of IN.

Leave a Reply