but, he's a "master negotiator", bernie.

https://www.washingtonpost.com/posteverything/wp/2016/12/01/bernie-sanders-carrier-just-showed-corporations-how-to-beat-donald-trump/

do i think this is right? in some abstract way, maybe. in reality, businesses don't make decisions based on tax incentives in the first place. i know that because they tell us it when we ask them: tax policies have almost no effect on whether a business stays or leaves. that is because you basically can't cut taxes low enough to offset the benefits of offshoring. you'd have to resort to corporate welfare - which happens for the big players, but can't be the actual norm.

so, this is a bit of a bait and switch. the issue is labour costs. and, bernie is being tricked into responding on the wrong terms.

to be clear: even if you were to cut the corporate tax rate to 0%, it would still be cheaper to move to mexico in almost all cases where the issue exists. you would have to actually give them handouts to convince them to stay.

the idea that the issue is taxes is the lie that bernie should be taking down.

so, why is it so much cheaper to manufacture in mexico? it's a lot of reasons.

1) poor worker's rights, and subsequent low wages.
2) more regulation over all kinds of economic rents. that is, a much less "free" economy. this leads to a lower cost of living because the costs of rent are much lower.
3) greater centralization of resources. the state-owned oil sector is especially key in keeping energy prices low, but it's more general than this.
4) insufficient environmental and labour regulations, and poor enforcement of the ones that exist.

the solution is to reverse these problems:

1) we need greater solidarity with mexican labour unions. we need to help mexican workers organize and fight for their rights.
2) we need to go after the rentier class.
3) we need to nationalize our resources.
4) we need to enforce nafta and demand that mexico regulate it's industries.

but, the political class tells us that we need more open markets. they tell us that because they benefit from this, while the rest of us suffer.

it has nothing to do with taxes. and, tariffs will only lead to inflation.

-

"It’s not clear if organized labor will play a role in Trump’s efforts to save Midwest manufacturing jobs. Chuck Jones, the president of the United Steelworkers in Indiana — the union that represents workers at the Carrier and Rexnord plants — went to the Carrier event today to speak with Trump officials. Jones and the union were not briefed on the deal ahead of time.

Jones said he was checked by Secret Service and placed in a holding room to await Trump while the president-elect toured the plant. Jones said he was eventually told Trump’s schedule was too tight for a meeting; Trump left without speaking to him."

https://news.vice.com/story/donald-trump-threatens-u-s-companies-that-would-send-jobs-overseas

i didn't think of the pay cut slant. it's possible.

but, it's obviously not about workers, is it?