Last month, Carrier Air Conditioner announced the closing of a plant in Indiana, and that the 1400 jobs from that factory will be exported to Monterrey Mexico. The company announced on the same day that it would be exporting another 700 jobs in Huntington Indiana to Mexico, as well. Thank you Nafta, thank you President Clinton, thank you Hillary, thank you Wall Street Senator Ron Wyden.
Carrier Air Conditioner is a subsidiary of United Technologies. The US government has billions of dollars of contracts with United Technologies. So now your taxpayer dollars are going to subsidize the lower wages of Mexican workers, and the rising share price of United Technologies, which go primarily to the wealthy.
The difference between the old, higher wages of the US employees, and the new lower wages of the Mexican workers will go straight into the pockets of rich United Technology shareholders via higher corporate earnings, rising share prices and enhanced dividends. That’s your taxpayer dollars going straight into the pockets of the wealthy, and Wall Street, and Goldman Sachs. Those are the folks that support Hillary Clinton.
CEO Gregory Hayes received nearly $20 million in compensation in 2013, and another $10 million in 2014.
The corporation earned profits of, or swindled from US taxpayers (which is more accurate), $7.6 billion in 2015, up from $6.2 billion in 2014, and $5.7 billion in 2013. You’d think the company was garnering enough profits to keep those jobs, but the answer is no it wasn’t, not with the way the US economy is structured. And the job of the US corporate media is to keep you ignorant of reality. So here it goes.
The share price of United Technologies peaked at $124 on February 20, 2015, and it was dropping since. On February 11, 2016, (almost one year after its peak) the share price had dropped to $84.66 despite $7.6 billion in profits garnered in 2015, which was higher than the year before.
The share price is the score card for how effective CEO’s are at doing their jobs. Nothing else matters, not even record profits, if those profits cannot boost share prices.
This shows that the real competition among publicly traded, limited, liability corporations is in the financial markets. Increasing earnings need to entice more and more investors to purchase their shares to bid up share prices. If they don’t, CEO’s are forced to resort to other methods of increasing earnings even more. Such as exporting jobs, which is precisely what all those so-called trade agreements are about.
These agreements are directly related to stock market performance, not because they increase overseas business, although that is a byproduct of these agreements. Exporting jobs is the intended and deliberately negotiated result of these agreements, with an eye toward improving stock market performance. The proof is in the stock price, time after time.
Since United Technologies announced it was exporting jobs to Mexico, which occurred on February 12 2016, its share price has risen to $99.11 as of March 17, 2016. Exporting jobs was all it took to get the share price going back up.
That’s why it is the pressures of the financial markets which has forced United Technologies to export jobs, and so-called trade agreements have been negotiated to legally pave the road for its CEO to do this. The Trans-Pacific Partnership is no different, except its worse than NAFTA. (More on that later)
There’s another issue lost in all of this mess that the corporate press doesn’t want you to know about. The loss of United Technologies 2100 jobs means the loss of an additional 6000 to 8000 other jobs, which are supported by the Carrier Air Conditioning jobs. All of these jobs increase the tax base for schools, infrastructure, police, fire, social security and other things. Those jobs are soon going to be gone, and everything they support, such as the tax base, are being redistributed to rich shareholders.
And those 2100 soon to be ex-employees of United Technologies, and the other 6000 to 8000 folks who will also lose their jobs, will be forced to compete with other unemployed folks for fewer and fewer jobs, placing downward pressure on local wages and other compensation. The beneficiaries will be the shareholders and CEO’s of other corporations that will pay less.
And that’s one of the ways the economic game is rigged against the 99 percent. That’s why Hillary needs to release the transcripts of her speeches to Goldman Sachs, although we already can pretty much guess what she said.