CEO of United Technologies just let slip an unintended consequence of the Trump-Carrier jobs deal

[kpete]

The ultimate outcome of the deal: There will be fewer manufacturing jobs in Indiana.


here's the kicker

The result of keeping the plant in Indiana open is a $16 million investment to drive down the cost of production, so as to reduce the cost gap with operating in Mexico.

What does that mean? Automation. What does that mean? Fewer jobs, Hayes acknowledged.

From the transcript (emphasis added):

GREG HAYES: Right. Well, and again, if you think about what we talked about last week, we're going to make a $16 million investment in that factory in Indianapolis to automate to drive the cost down so that we can continue to be competitive. Now is it as cheap as moving to Mexico with lower cost of labor? No. But we will make that plant competitive just because we'll make the capital investments there.

JIM CRAMER: Right.

GREG HAYES: But what that ultimately means is there will be fewer jobs.





MORE:
http://finance.yahoo.com/news/ceo-united-technologies-just-let-231538059.html

[dhol82]

1. And they got $7 million to get things started.

[Achilleaze]

2. The Repubbies & Corporate Media lap Trump's BS up without question

Basically they are begging Comrade Casino (R) to sucker them, again and again.

[Wellstone ruled]

4. The door is kicked open for the next four years

at the minimum with these types of deals. Automation is killing our manufacturing and in that lies the fact that our Nation refused to set up safe guards to help the people affected. Training for the Automation Technology and related positions was never addressed period. Instead we have a Tax Code that rewards Corporations to move Operations off shore.

At some point,our Consumer Nation will hit the wall,and that will be when no one has the ability to purchase all of this Imported Crap. Are we there yet? After the Con Job in Chief finishes,it won't make any difference,there will only be 440k that will have any disposable income.

[Wounded Bear]

3. "Unintended?" Doubtful....nt

[BSdetect]

5. Of course robots / machines will take work

Are these people totally ignorant?

[Vinca]

6. But it was a hell of a good photo op.

[SubjectiveLife78]

7. Every political platform that runs on jobs for people is going

to run into this same problem. Trump, Sanders, anyone.

There are 7+ billion people on the planet, the world has either caught up, passed, or will catch up to American skills, so many people can do many jobs. Then you add in the technological innovation that makes those same people the world over increasingly unnecessary.

Other than more training and education, and it's never really specified training and education in what, or for how long, what answer does any political figure have to what's not only coming, but already here? Murmurs of ideas and a few trial run experiments concerning guaranteed income.

We joke about buggy whip makers in relation to the technology of the car, but we should really look at the horse. What do horses do today? They're all penned up. A few might race every now and then. Mostly they're not needed anymore, and are fairly expensive to keep alive.

[jmowreader]

12. The "buggy whip" thing was bullshit anyway

A man might - stress on "might" - have needed two whips in his life, unless he lost one. They don't wear out and they all look the same, and you can use the same whip on all the horse-drawn vehicles you have. The people who were making whips ALSO made shoes, gloves, clothing and any other leather good you can think of.

Then came the car, and leather goods makers noticed something: you needed warm, protective clothes to ride in an open-air automobile. They dumped the whips from their lines, started making leather car coats and hats, and made more money than they ever had.

[SubjectiveLife78]

24. We're more like the horse this time though

[anarch]

8. but we'll keep those robots in America, by God!

I have to wonder if they'll at least be U.S.-made robots...


I also have to wonder, if/when pretty much all manufacturing and even agriculture and transportation is automated (as it very well might be in the not-too-distant future) if everyone will still be expected to have a "job" even when there really aren't very many, but lots and lots of products. People just don't seem to be very forward-thinking, mostly.

[hueymahl]

9. Ehh. Automation is ultimately good for the economy. Sucks for those losing their jobs, though.

Increased efficiency and automation is what turned this country, and the world, into a modern economy capable of supporting 6 billion people.

So why I think the whole Carrier deal is sleazy and a terrible precedent, I can't get terribly excited about a CEO talking about automating plants so that they are competitive world-wide.

[grantcart]

11. The problem is there is a tipping point where there simply won't be any

jobs for 35% of the population

Yesterday I went to Sam's Club ( no Costco in the area )and used the phone app to check myself out and walked out of the store. without having to talk to a store employee.

[hueymahl]

17. Maybe, maybe not.

People have been making this same argument since the invention of the steam engine (and probably before that).

Are things different now? Some futurists say the advancement of AI could finally spell doom for employment, but just as many (really, most) say the opposite.

I tend to say technology will always end up creating more jobs in the end as new markets, products and services are developed.

It is a very interesting discussion!

[annabanana]

15. What would be good for OUR economy is

people having money in their pockets to spend on this stuff.

[hueymahl]

16. Yes, but that is an whole other issue

Stopping technological innovation is not the answer

[bucolic_frolic]

10. I'm tired of hearing Democrats are against the working class

as if the Republicans are FOR the working class?

We are scapegoats

[hueymahl]

20. Good point

We have successfully been labeled as cozying up to Banks and the rich at the expense of the working class. Our brand has been tarnished.

[bucolic_frolic]

22. Which is fine and all well and good with some validity

but the GOP are the country club, vulture capitalist, CEO class who
only look out for themselves

They need some tarnishing too and that is where we have failed imho

[hueymahl]

23. Agreed. We are living in Bizarro World. NT

[William Seger]

13. What a surprise: Businesses want cheap labor

... yet every Republican will brainlessly insist businesses are moving offshore because of taxes and regulations, so if we have to cut those.

[lame54]

14. Trump kept robot jobs in the country

[DeminPennswoods]

18. the jobs will be to service and maintain the robots

and the software that runs them, but it's unlikely anyone currently working at the plant will be qualified to do them.

[hueymahl]

21. Likely true

A Democrat would have demanded Job retraining or structured the tax break to require it.

[Javaman]

19. but hey! those unemployed will still be Americas unemployed Damn it!

Better they lose their jobs to greedy US corporations than them being outsources to Mexico, right?

this is the kind of logic you will be reading and hear very soon.

we are a cartoon of a nation.