With inauguration just over a month away, President-elect Donald Trump is already touting his negotiating skills to keep American jobs on U.S. Last week Trump announced that his deal with United Technologies, the parent company of Carrier, would ensure that 1,100 jobs at an Indianapolis, Indiana factory, would not be moving to Mexico. In exchange, the company will receive $7 million in tax credits over the next ten years. According to a recent poll by Politico/Morning Consult, 60 percent of voters say the Carrier deal gives them a more favorable view of Trump – including 87 percent of Republicans, 54 percent of independents and 40 percent of Democrats. Despite the popular reception among the voters polled, critics say this could set a dangerous precedent. Soledad O’Brien analyzes the economic implications of the deal with business analyst James Pethokoukis from the conservative American Enterprise Institute.

Show More
*THIS IS A ROUGH TRANSCRIPT. THERE MAY BE ERRORS. O’Brien: James Pethokoukis is an economist at the conservative AEI and he has called this deal chilling. Nice to have you with us Pethokoukis: Thank you O’Brien: So the responses have been divided between people cheering, Hey jobs were saved, and if you are one of the 730 to 800 people whose jobs were saved there, to others bemoaning the way this was done. Where do you stand on it? Pethokoukis: I’m concerned. I want make companies making decisions based on what is best for customers, shareholders and over the long term what is best for their employees. What I don't want is businesses making decisions on the whims of politicians including the president of the US. This is a weird situation - we have a business telegraphing that the economics of their business to be competitive that they need to be making products somewhere else where labor costs less and they made that decision. and then the president says "I know better," you can make these jobs here, maybe less profitable but you'll be ok. We elected him president, not chairman of the board of every company in America. O’Brien: It’s hard to say saving jobs as a bad thing Pethokoukis: Right, it's the job of the president to take a longer view. If they had moved somewhere in us, would he have saved them? He might not. Workers have to be prepared, not only might their jobs go overseas but they might go elsewhere. For the long term viability of Carrier - they are owned by united technologies, which has govt contracts. I'm sure at the end the of the day and the CEO implied this, it was less about tax credits that they got. They were worried about losing govt contracts, kind of a punitive action here. They felt forced to do this and the cost of keeping these jobs in Indiana and not what they wanted to do in order not to lose govt contracts. If this was a stand alone company, carrier, without a big wealthy parent, they would really be at risk. O’Brien: this is a quote - The free market is sorting it out and America has been losing. That's from Pence. I thought republicans were all about the free market and free enterprise. I haven't heard elected officials on GOP side decrying what they are seeing happening Pethokoukis: Right. Its their president, he won, he beat Clinton. This is one of the first big things that he has done even though he is not president, he is the president elect. The polls say this is popular. At this point they are going with their guy and what the polls say. That is wrong, what pence said. We have had more open trade over the past 30-40 years, this economy has created 15 million jobs since the early 1980s. The market is doing fine but doesn't mean there won’t be losers or people left behind and the govt should have been doing more all this time to help people who have lost their jobs but free trade is good for America, NAFTA is good for America. O’Brien: But a lot of churn to an individual person is a horrible thing. isn't this what the election in part was won on? This sense that this is the way the market goes and if you’re an unlucky one, sorry because these are market forces. Pethokoukis: We are not going back to the 1950s and 1960s. these manufacturing jobs are not coming back. But you mention oh what about the workers - too bad you lose your job? No, I think that's where govt has a role to play, more broadly making sure we have dynamic economy where companies want to be based here for starters, two education system and training system for workers, that's important. O’Brien: A water bill passed in the Senate and a provision about buying American steel that house republicans removed so now I’m confused about what the republican party wants because I would have thought.. Pethokoukis: The republican party I think is confused that's why. By making companies buy American steel you are raising the cost for every company that uses steel and therefore the products they make, whether used by consumers or businesses, are more expensive. If Clinton had won and taking the exact same decisions, republicans would be screaming, they would be calling her an authoritarian, calling her a socialist but because Trump won, it is fine. I think the republican party is trying to figure out what exactly they believe about economics. If America is somewhere else, they need to go somewhere else O’Brien: And if it’s not free trade anymore that's kind of interesting, thanks so much James nice to talk to you Pethokoukis: thank you for having me
Show More

Related Videos

  • Fmr. Gov. O’Malley: Democratic Candidates Don’t Need the National Party

    November 18, 2017

    Fmr. Gov. O’Malley: Democratic Candidates Don’t Need the National Party

    November 18, 2017

    Spurred by wins last in New Jersey and Virginia, Democrats are looking to keep that moment...

    Watch now
  • Where Does the Russia Investigation Go Next?

    November 4, 2017

    Where Does the Russia Investigation Go Next?

    November 4, 2017

    Special Counsel Robert Mueller is set to depose three or four current White House official...

    Watch now
  • How Bannon Could Change the Face of the GOP

    October 28, 2017

    How Bannon Could Change the Face of the GOP

    October 28, 2017

    Incumbent Senate Republicans under attack as Steve Bannon, former White House chief strate...

    Watch now
  • EXTENDED INTERVIEW: Joshua Green on Steve Bannon

    October 28, 2017

    EXTENDED INTERVIEW: Joshua Green on Steve Bannon

    October 28, 2017

    Joshua Green is a journalist with direct access to Steve Bannon, former White House chief ...

    Watch now
  • Puerto Rico’s Former Gov.: We Need to Rebuild Smarter

    October 14, 2017

    Puerto Rico’s Former Gov.: We Need to Rebuild Smarter

    October 14, 2017

    Puerto Rico continues to suffer from the devastation left by hurricanes Irma and Maria. Th...

    Watch now
  • EXTENDED: Law Professor Kathleen Clark

    July 15, 2017

    EXTENDED: Law Professor Kathleen Clark

    July 15, 2017

    This week, Trump, Jr. released emails showing he had welcomed a meeting with a Russian law...

    Watch now
  • Legal Expert: President Could Face Legal Liability

    July 15, 2017

    Legal Expert: President Could Face Legal Liability

    July 15, 2017

    President Donald Trump returns from his visit with the French president to the continuing ...

    Watch now
  • Rep. Bustos: We Cannot Be the Anti-Trump Party  

    July 1, 2017

    Rep. Bustos: We Cannot Be the Anti-Trump Party  

    July 1, 2017

    Democrats have been the minority party in the House since 2010, and struggled midterm afte...

    Watch now

Latest

  • How Fake News Is Evolving, Threatening Democracy

    November 18, 2017

    How Fake News Is Evolving, Threatening Democracy

    November 18, 2017

    The scope of fake news on social media platform is growing and malicious actors ...

    Watch now
  • Advocate: Puerto Rico is Like a Third World Country

    November 18, 2017

    Advocate: Puerto Rico is Like a Third World Country

    November 18, 2017

    Puerto Rico is still struggling to recover after Hurricane Maria made landfall t...

    Watch now
  • Fmr. Gov. O’Malley: Democratic Candidates Don’t Need the National Party

    November 18, 2017

    Fmr. Gov. O’Malley: Democratic Candidates Don’t Need the National Party

    November 18, 2017

    Spurred by wins last in New Jersey and Virginia, Democrats are looking to keep t...

    Watch now
  • Honoring Our Veterans: The Story of Col. Barnum’s Medal of Honor

    November 11, 2017

    Honoring Our Veterans: The Story of Col. Barnum’s Medal of Honor

    November 11, 2017

    Colonel Harvey “Barney” Barnum, retired U.S. Marine Corps Officer, saved over 13...

    Watch now
  • History Corrected for Denied Medal of Honor Recipients

    November 11, 2017

    History Corrected for Denied Medal of Honor Recipients

    November 11, 2017

    Over 3,500 armed service members have received the Medal of Honor, the U.S. mili...

    Watch now
  • Double Amputee Marine Completing a Month of Marathons to Raise Money for Charities

    November 11, 2017

    Double Amputee Marine Completing a Month of Marathons to Raise Money for Charities

    November 11, 2017

    Rob Jones, a retired U.S. Marine, is the only double, above-the-knee amputee to ...

    Watch now
  • Valor Defined: The Story of Staff Sgt. Morris’ Medal of Honor

    November 11, 2017

    Valor Defined: The Story of Staff Sgt. Morris’ Medal of Honor

    November 11, 2017

    Staff Sgt. Melvin Morris earned his Medal of Honor during one of two tours in Vi...

    Watch now
  • Sen. Carper: We Need to Stabilize the Obamacare Exchanges

    November 4, 2017

    Sen. Carper: We Need to Stabilize the Obamacare Exchanges

    November 4, 2017

    Premiums for Obamacare are up an average of 37% this enrollment season. Those hi...

    Watch now
  • Honoring Our Veterans: The Story of Col. Barnum’s Medal of Honor

    November 11, 2017

    Honoring Our Veterans: The Story of Col. Barnum’s Medal of Honor

    November 11, 2017

    Colonel Harvey “Barney” Barnum, retired U.S. Marine Corps Officer, saved over 13...

    Watch now
  • History Corrected for Denied Medal of Honor Recipients

    November 11, 2017

    History Corrected for Denied Medal of Honor Recipients

    November 11, 2017

    Over 3,500 armed service members have received the Medal of Honor, the U.S. mili...

    Watch now
  • Double Amputee Marine Completing a Month of Marathons to Raise Money for Charities

    November 11, 2017

    Double Amputee Marine Completing a Month of Marathons to Raise Money for Charities

    November 11, 2017

    Rob Jones, a retired U.S. Marine, is the only double, above-the-knee amputee to ...

    Watch now
  • Valor Defined: The Story of Staff Sgt. Morris’ Medal of Honor

    November 11, 2017

    Valor Defined: The Story of Staff Sgt. Morris’ Medal of Honor

    November 11, 2017

    Staff Sgt. Melvin Morris earned his Medal of Honor during one of two tours in Vi...

    Watch now
  • Could She Become the First African American Female Governor?

    October 28, 2017

    Could She Become the First African American Female Governor?

    October 28, 2017

    She’s a Democrat running in deep red Georgia, set on changing history. She wants...

    Watch now
  • Sister of Veteran Killed by Suicide Turning Her Loss into A Mission

    October 14, 2017

    Sister of Veteran Killed by Suicide Turning Her Loss into A Mission

    October 14, 2017

    Suicides across the U-S have been on a steady rise with a recent report from the...

    Watch now
  • A Growing Industry in L.A.? Hint: We’re Not Talking About Hollywood

    September 30, 2017

    A Growing Industry in L.A.? Hint: We’re Not Talking About Hollywood

    September 30, 2017

    The next big tech gadget could be coming to you from the West Coast – but hundre...

    Watch now
  • Smithsonian African American Museum Celebrating First Year

    August 26, 2017

    Smithsonian African American Museum Celebrating First Year

    August 26, 2017

    Meet Zena Howard, one of the architects for the nation’s newest museum that has ...

    Watch now
  • November 11, 2017

    November 18, 2017

    November 11, 2017

    November 18, 2017

    This Veteran's Day weekend, Soledad O'Brien explores the story of two Medal of H...

    Watch now
  • November 4, 2017

    November 13, 2017

    November 4, 2017

    November 13, 2017

    This week on Matter of Fact, open enrollment is underway for the state insu...

    Watch now
  • October 28, 2017

    November 4, 2017

    October 28, 2017

    November 4, 2017

    This week, Soledad O'Brien takes a look at Steve Bannon's war on the Republican ...

    Watch now
  • October 21, 2017

    October 28, 2017

    October 21, 2017

    October 28, 2017

    This week Soledad O'Brien speaks with Democratic strategist Jamal Simmons a...

    Watch now
  • October 14, 2017

    October 21, 2017

    October 14, 2017

    October 21, 2017

    Puerto Ricans continue to struggle with survival issues and Congress grapples wi...

    Watch now
  • October 7, 2017

    October 14, 2017

    October 7, 2017

    October 14, 2017

    Soledad O'Brien sits down with Colin Goddard, a survivor of the 2007 mass shooti...

    Watch now
  • September 30, 2017

    October 7, 2017

    September 30, 2017

    October 7, 2017

    On this episode of Matter of Fact, we focus on the scene on the ground in Puerto...

    Watch now
  • September 23, 2017

    September 30, 2017

    September 23, 2017

    September 30, 2017

    Senate Republicans are giving Obamacare repeal another try with their latest pie...

    Watch now