(December 2, 2016 at 10:35 am)Aegon Wrote:(December 2, 2016 at 9:05 am)alpha male Wrote: $7 million subsidy divided by 1,000 jobs equals $7,000 per job.
Laid off workers can collect unemployment for 26 weeks. $7,000 divided by 26 equals $269. In IN, that amount equates to annual earnings of about $30,000.
So, if the average earnings of a laid off worker is over $30,000, the government is saving money on this deal.
That doesn't even factor in that the workers will be paying taxes themselves, or that the unemployment would be paid over 6 months, whereas the incentives are stretched over 10 years.
So, if this sets a precedent - great!
I don't care if the government is saving money, I care that a corporation, to use a little hyperbole, held the government hostage with this deal. Being rewarded for keeping 800 jobs... not even the full 2,100... you know what I mean when I talk about a precedent, right?
I'm highly sceptical that $7 million is the final tally. Pence as governor of Indiana could have worked that deal by himself. No need to bring in the Donald except for the dog and pony show.
On the other hand we have Carrier's parent company, United Technologies, that is a big part of the military industrial complex. A few extra F35 orders might sweeten the deal.
“Understanding is a three edged sword: your side, their side, and the truth.”