Welcome To Obama’s Recovery: United Technologies Moving 2,100 Jobs To Mexico

In his final state-of-the-union address, President Obama famously accused anyone who dares to question the strength of the US economic “recovery” of “peddling fiction.”

Shortly thereafter, we learned that the US economy grew at a paltry 0.69% in Q4. Way below estimates.

Perhaps the most disturbing thing about the state of the economy – well, besides the fact that healthcare spending is essentially driving all of the “growth” – is that the labor market has becoming a waiter and bartender creation machine. That’s come at the expense of manufacturing jobs, where skilled workers can actually earn a decent living.

Here’s what the disparity looks like since 2007:

waiter bartender vs MFG since 2007

No fiction “peddling” there. Just numbers.

Additionally, we’ve noted the fact that foreign workers account for the vast majority of job creation in America since the crisis:

foreign 5_0

On Wednesday, United Technologies (parent of Carrier Air Conditioners) decided to reinforce both of these trends all at once, when the company announced it would be eliminating 2,100 jobs at a Carrier plant in Indianapolis in favor of hiring some new “foreign-born” employees – only these “foreign-born” workers will be hired in Mexico.

“Two Indiana plants that make products for the heating, ventilating and air conditioning industry are shifting their manufacturing operations to Mexico, which will cost about 2,100 workers their jobs,” The Indianapolis Star reports. “Carrier is shuttering its manufacturing facility on Indianapolis’ west side, eliminating about 1,400 jobs during the next three years [and] United Technologies Electronic Controls said that it will move its Huntington manufacturing operations to a new plant in Mexico, costing the northeastern Indiana city 700 jobs by 2018.”

Economists called the move “highly unusual.” “Today’s surprise announcement was without warning,” the mayor said.

Actually, it’s neither “highly unusual” or “surprising.” Here’s why (again from The Star): “Carrier’s workers are separated into a two-tier wage system. A quarter of the workers make about $14 an hour, or about $30,000 a year. The rest make about $26 an hour, or about $55,000, but make well above $70,000 a year with overtime.”

Something tells us labor costs will be “slightly” lower south of the border.

Who’s “peddling fiction” now?

I guess we need to balance this out by importing 210,000 extra welfare recipients from Mexico.

http://www.zerohedge.com/news/2016-02-12/welcome-obamas-recovery-carrier-moving-1400-jobs-mexico

 

Advertisements

About avirginiapatriot1776

I hope we have once again reminded people that man is not free unless government is limited. There’s a clear cause and effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts. — Ronald Reagan
This entry was posted in Uncategorized. Bookmark the permalink.

Leave your name and comment (info below comment box is optional)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s