Archived Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High (zerohedge.com)
submitted ago by bdmthrfkr
Posted by: bdmthrfkr
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Archived on: 4/10/2017 10:00:00 AM
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Archived Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High (zerohedge.com)
submitted ago by bdmthrfkr
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[–] nuworldblue 0 points 1 point 1 point (+1|-0) ago
Isn't that what this is though? I would hardly call it a controlled economy to offer the incentives you mentioned, which is the core of his economic philosophy here, while also introducing some hardline negotiation tactics that encourage initial investments in American industry.
This isn't to say your argument is without merit, particularly in regards to fairness, conflict of interest, and the spirit of competition. I just wonder how long it would take and what miracle would have to occur for manufacturing companies to decide to stay now. Would it be inaccurate to characterize this approach as cauterizing the wound that is caused by regulations and taxes on American businesses as we move towards a more robust manufacturing role while also championing the free market?
In other words, how else do we stop the bleeding of American jobs leaving the country without first closing the wound and stopping anyone else from reopening it.
[–] [deleted] 0 points 1 point 1 point (+1|-0) ago
[–] nuworldblue ago
I completely agree with you, but isn't that Trump's economic policy anyway? Lower corporate income taxes and cut regulations? Is there really any harm in bringing these companies to the negotiating table and getting them to keep and invest in American jobs before he's even in office? Just to be clear, no one is strong-arming these companies to stay. They just have a new set of rules within which they have to operate.
Trump isn't forcing these companies to stay so much as jump-starting his economic policy by getting some big players on board (at least that's the way I see it). Companies get lower taxes, fewer regulations and the USA gets jobs.
Isn't that Trump's whole shtick? Making deals?
In regards to the stopping the bleeding comment, and to keep the metaphor going, here is how I will attempt to characterize it and you can correct me if I'm wrong:
The jobs are the blood. The current economic policy is the wound. Before we can apply the neosporin (cutting regulations and taxes), first we should stop the bleeding and stitch the wound (sitting down with companies and negotiating from a position of power). I don't see it as an "anti-dog-eat-dog rule" to simply explain the new rules to a company like Fiat. America needs to look out for its own interests and if Fiat has to close down a factory in Mexico as a result, well, what's more dog eat dog than that?