E Trump's Carrier Deal, Banks,Technology And Freedom
Donald Trump's Carrier Air Conditioner deal, which leaves jobs in Indiana instead of offshoring them was certainly a bold move. I am very happy for the folks who kept their jobs. It is important to think about this from an economic perspective. I don't like pendulums, but rather an even handed approach to these issues.
Looking at this issue as an economic problem we can see two issues that should be considered:
On the one hand, a competitive world has its advantages. If nations can produce things cheaper, we can buy them more cheaply. It would do no good for America if Carrier Air Conditioning would be forced to overcharge for air conditioners, simply because it is forced to stay in the USA.
On the other hand, one has to wonder how many companies leave America based upon greed rather than upon sound economics? We see that Whirlpool (WHR) appliance manufacturer proudly displays its Made in USA label on its quality products. As we see from Consumer Reports, this company competes with products made all over the world. There is also a competitive edge to making products locally. People like to buy products made here.
Concerning Whirlpool and market research, the New York Times made this startling statement back in 2012, that obviously was ignored by Barack Obama, Hillary Clinton and the Democrats:
"Whirlpool does not share its market research, but other market studies show that customers increasingly take note of where a product is made. Perception Research Services International, in a September study, found that four out of five shoppers notice a “Made in the U.S.A.” label on packaging, and 76 percent of them said they would be more likely to buy a product because of the label."
So, it was shocking to me that two strange bedfellows, Larry Summers and Sarah Palin, two noted globalists, were offended at Trump's efforts to keep manufacturing jobs in the USA.
Disclosure: I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice.
Disclosure: I am not an investment counselor nor am I an attorney so my views are not to be considered investment advice.less