Carrier Workers See Costs, Not Benefits, of Global Trade
And Mr. Trump vows not to take Carrier’s calls until it agrees to change course. “As sure as you’re here, they will call me up within 24 hours,” he promises, and say to him, “‘Sir, we’ve decided to stay in the United States.’”
It is powerful talk.
The relentless loss of American manufacturing jobs, however, goes back nearly half a century, driven largely by forces beyond the control of any president. The advances of technology, the diffusion of industrial expertise around the world, the availability of cheap labor and the rise of China as a manufacturing powerhouse would have disrupted the nation’s industrial heartland even without new trade deals.
Nor are tariffs likely to bring many of these jobs back, said David Autor, a professor of economics at M.I.T., who is one of the country’s foremost specialists on the pluses and minuses of free trade. “We don’t have silver bullets,” he said.
“When I learned about the impact of trade agreements, the theory was that workers would be ‘released’ into the labor market and hired back at slightly lower salaries,” Mr. Autor said. “That’s not what happened. And no amount of cheaper air-conditioners will make these workers whole.”
I’m sure this story will benefit Trump.
I am not anti -free trade but this story illustrates what is wrong. Carrier already has a skilled, well-trained workforce, moving to Mexico will only benefit the shareholders and executives who get paid in stock options.