The winning streak continues.
Donald Trump’s deal with Carrier that saved over 1,000 manufacturing jobs in the U.S. may not be large in the grand scheme of things (considering we have a nearly $19 trillion economy), but it’s a preview of what’s to come. While Trump individually negotiated the Carrier deal, keep in mind he isn’t even president yet. He hasn’t been able to reform the tax code as a whole in a way to encourage jobs to return to the U.S. at a macro level.
But at least one business leader is planning on expanding following Trump’s victory. As CNBC reported: United States Steel would like to accelerate its investments and hire back laid-off employees now that Donald Trump will be occupying the Oval Office, CEO Mario Longhi told CNBC on Wednesday.
“We already structured to do some things, but when you see in the near future improvement to the tax laws, improvements to regulation, those two things by themselves may be a significant driver to what we’re going to do,” he said in an interview with CNBC’s “Power Lunch.”
In addition, the belief that the U.S. economy can grow at least 3.5 percent also adds to what the company can do, Longhi noted. “I’d be more than happy to bring back the employees we’ve been forced to lay off during that depressive period,” he said, which “could be close to 10,000 jobs.”In a statement to CNBC later, U.S. Steel clarified that Longhi was “referring to the American steel industry overall, not just to employees of United States Steel Corporation.”
The American steel industry has been on a decline for a while now, with employment in the sector falling by a third since 2000 (from 135,000 jobs to 87,000 by 2015). Another 4,000 jobs in the sector were lost in 2015. Lonhi says he could be bringing back as many as 10,000 jobs – an extremely large number of jobs relative to the size of the sector.
Tired of winning yet?
[Note: This post was authored by The Analytical Economist]