Matthew Yglesias: Donald Trump and the Indiana Carrier Factory, Explained
Carrier, the HVAC company that since 1979 has been a subsidiary of the larger United Technologies conglomerate, announced several months ago that it was going to close two facilities in Indiana and shift production to a new plant the company is building in Mexico. The move was telegraphed well in advance as part of the company’s obligations to its workforce, but in a practical sense that only made the sting worse.
The plants weren’t closing because Carrier was losing money hand over fist or because the products they made were obsolete. It was simply cold-hearted medium-term economic planning — it would be cheaper to do it in Mexico.
Read the rest of Matt’s column here.