RE: Carrier stays in US
December 2, 2016 at 11:48 am
(This post was last modified: December 2, 2016 at 11:48 am by mihoda.)
(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!
(December 2, 2016 at 2:16 am)mihoda Wrote: You left out the part where everyone in the US pays more for air conditioners in perpetuity.
What's your alternative? Transfer payments? That increases taxes, which leaves less money to pay for the less expensive air conditioners.
Yes. As I've been saying repeatedly in different ways, the size of transfer payment is smaller than the savings from cheaper goods. And, the kicker is that the benefit is in perpetuity while the transfer payment needs only exist until that worker is rehabilitated or dies.
