Last week we reported on a viral video which captured the moment 1,400 workers at Carrier Air Conditioner found out their jobs were being outsourced to Mexico. (In other news, Donald Trump just received another 1,400 supporters).
Obama has blasted Republicans for allegedly wanting to “protect tax cuts for companies who want to ship jobs overseas,” but he clearly hasn’t been paying attention to his own economic policies. He’ll never admit the stimulus was a failure, but he now can’t deny that his own policies suffer from the flaws of which he accuses Republicans.
Local media reported the “Department of Energy awarded Carrier $5.1 million in clean energy tax credits in December 2013” for its Indianapolis facility. They planned to use the money to “expand production at its Indianapolis facility to meet increasing demand for its eco-friendly condensing gas furnace product line.”At the time, John Gibbons, director of Carrier’s residential product and platform strategy, said the cash “has been instrumental in helping Carrier’s Indianapolis manufacturing facility accelerate production of our high-efficiency gas furnace line.” Despite the money, the company announced last week they decided to move 1,400 jobs to Mexico. Local union representatives will discuss the move with Carrier. Fox 59 reported that some “employees will be entitled to severance benefits, including access to the company’s Employee Scholar Program, which pays for tuition, books and fees at accredited higher education institutions.”
The tax credit in question was created as part of Obama’s stimulus bill, which, as this story clearly proves, still hasn’t managed to stimulate much other than anger.
[Note: This post was authored by The Analytical Economist]