Poor Policy

Trump’s decision to essentially force Carrier to preserve 800 manufacturing jobs in Indianapolis is bad policy. If Trump thinks stunts like this will reverse the macroeconomic tide, he’s woefully uninformed. Moreover, other firms may threaten to outsource jobs to get financial incentives like Carrier. Lastly, to globally compete but with higher costs, the plant in Indianapolis will automate much of the assembly process, requiring new workers with better technical skills.