Thursday, December 1, 2016

Saving jobs?

Just finished my search for momentum stocks and listened to the TV saying that Trump saving 1000 jobs from moving a Carrier plant to Mexico.

It is similar to Bush announcing finishing the war in Middle East. Both are political 'wins' initially.

The fact is symbolism will not help. Carrier gave concession due to its business with the government. We can gain a lot of jobs by imposing a 45% tariffs on foreign products but that will trigger a trade war and we will end up to lose far more than we can gain.

The solution is to give up some jobs to lower-wage countries and save jobs that we have competitive advantage today. Retrain our workers. Make business easy to be profitable (via less regulations. less taxes, better infrastructure...). Just do not know why the decision makers making many times my wage cannot make these basic decisions. Politics must have covered the eyes and damaged their brains.

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