Carrier and 'Free' Trade
- Thread starter SPECTRE1
- Start date
It is good news if you live in the United States. However, six out of eight of their competitors are in Mexico and a massive supply chain, does this deal hurt them in the long run? This is a quick fix and not a long term solution to bringing production back to the U.S.
1. Investors lose the ability to have better EPS leading to higher share price and dividends.
2. Consumers will have higher priced goods from Carrier on the market. Their dollar will have less purchasing power.
3. The company will have lower cash reserves, increasing the likelihood of bankruptcy and inability to expand into other markets.
They used this photo opportunity to link business taxes with lost jobs which they want to lower. If it was about business taxes. they would have moved their corporate office.
Companies that offshore will gain massive profits for a short term, than their competitors as in the case of Carrier will quickly setup production in the same location. They will eventually price war eroding any gain from the lower wages. For example, Company A is setup in Mexico and prices their product just slightly below Company that is in the United States. They gain significant profit, however, Company B setups shop in the same place and lowers their price.
1. Investors lose the ability to have better EPS leading to higher share price and dividends.
2. Consumers will have higher priced goods from Carrier on the market. Their dollar will have less purchasing power.
3. The company will have lower cash reserves, increasing the likelihood of bankruptcy and inability to expand into other markets.
They used this photo opportunity to link business taxes with lost jobs which they want to lower. If it was about business taxes. they would have moved their corporate office.
Companies that offshore will gain massive profits for a short term, than their competitors as in the case of Carrier will quickly setup production in the same location. They will eventually price war eroding any gain from the lower wages. For example, Company A is setup in Mexico and prices their product just slightly below Company that is in the United States. They gain significant profit, however, Company B setups shop in the same place and lowers their price.
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I think I know where he is going with this. First he is lowering business taxes and personal. Than he is streamlining government due to the decreased tax revenue (Boeing) and reducing social welfare. In exchange, he is being tough on trade, centralized manufacturing in low wage countries.
The Democrats lacked provisions in their trade deals that limited the amount of time you can centralize manufacture in a country.
He needs to formalize or establish policy to ensure companies stay in the country. Once they get their taxes lowered they will push him out of office and get some weak fool pushing another TPP. Their greed will push for both and will be unstoppable.
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The better approach is for the government to develop an investment fund of a couple trillion that buys non voting stock capped at a max amount. Many state government does this through pension funds. Rather than a tax break, the government target specific companies like Apple or Carrier that are seeking to offshore or entice them to move jobs back.
We need to make the stock market more multi dimensional.
The SEC can force companies to publish wage and location headcounts of employees.
We need to make the stock market more multi dimensional.
The SEC can force companies to publish wage and location headcounts of employees.
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