Donald Trump played the role of knight in shining armor by saving 800 Carrier Corp. jobs in Indianapolis that were slated to be moved to Mexico.
But when the president-elect becomes president, the nation desperately needs him to act as a nimble and thoughtful economic development leader, rather than galloping across the countryside on a crusade to save jobs one at a time.
Without a doubt, it's a good thing for Indiana, Indianapolis and Carrier's lame-duck employees that Trump stepped in to help save those jobs. While the cost to the state is nothing to ignore — $7 million in tax incentives across 10 years — it's not out of line with the multi-million dollar deals regularly cut by Hoosier communities to attract new jobs and save existing ones.
Here's the problem: There is an enormous sea of jobs in distress, and it would be impossible for even the most determined knight to save even a tiny fraction. In the case of Carrier, which manufactures air-conditioning and heating units, our brave knight actually salvaged just 28 percent of the jobs; 1,300 will still be moved to Mexico.
A New York Times article notes that, according to government data, each year 27 million private-sector jobs are discontinued in the United States. Meanwhile, 29 million new jobs are created. This is the way of the modern economy, where roughly 10 percent of businesses perish each year, only to be replaced by new ventures. Saving 800 jobs, taking the broad view, is statistically insignificant.
Manufacturing in the United States is on the downside of this churn. Nearly 19.6 million Americans held manufacturing jobs in 1979; today there are 12.3 million. This scenario has played out painfully in Anderson, where General Motors plants once employed 25,000; a few decades later, the local auto parts factories were shuttered.
And the decline of auto industry jobs is likely to continue.
Combined during the next four years, General Motors and Ford plan to invest $9.1 billion in Mexican auto plants, hiring 30,000 workers. By 2020, about 40 percent of small cars built by Detroit automakers will come from Mexico. That would double the current percentage.
The cost of manufacturing cars — and air conditioners — is much cheaper outside American borders. An average factory worker in the United States earned $37.71 an hour in 2015, while Mexican factory workers earned an average of just $5.90 an hour.
That's why the jobs are leaving, and our country — led by our president — must figure out how to change the paradigm.
Trump has talked, in vague terms, about punishing U.S. companies that outsource jobs and production. Rather than adopting punitive measures, wouldn't it be better to focus on making America a better place to do business?
Our president-elect, particularly after he takes office, should channel his efforts toward nuanced and sweeping policies that establish a business-friendly climate across the country.
Or he could stay up on his high horse, galloping in to save the day for one group of workers while the country's economy shrivels.