Trump jawboning with Carrier

Trump's first jawboning session. Carrier vs. Trump

Lots of folks have objected to the $7,000,000 tax break given to Carrier over a ten year period for retaining their Indiana manufacturing operations that were scheduled to migrate to Mexico. Part of Trump's presidential campaign was to keep American jobs in America. This is origin of the conflict. However, ...

No one has observed that if all 1,100 are unemployed in the state of Indiana, the cost to the government for unemployment benefits would be

1,100 people x 26 weeks x $390/week* = $ 11,154,000

for the first 26 weeks of unemployment. After that comes welfare, medicaid and more. Serious reduced spending by affected families would be a certainty. Loss of home and loss of spending power would follow. The total loss is far higher. Careers are lost, and with them the infrastructure supporting them.

The mere $7,000,000 cost to taxpayers exceeds the entire tax break in just one-half year! For a brief phone call more than $4,000,000 was saved to the government. As well, the price paid for the machines continuing to be manufactured in the US stays in the US. Not being an economist, I cannot give full and accurate measure to the total balance of economics. It seems there is a quite net gain for the homeland.

*See http://fileunemployment.org/unemployment-benefits-comparison-by-state

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