Trump convinced Carrier to keep these jobs via huge tax incentives in the millions.
United Technologies CEO spelled out the end fate of the carrier plant.
The savings from the tax incentives will ultimately be reinvested into automating the plant. Yes carrier will still have some jobs at the Indiana plant and they will likely be high wage jobs to boot. But people won't be building things the plant will be automated.GREG HAYES: Right. Well, and again, if you think about what we talked about last week, we're going to make a $16 million investment in that factory in Indianapolis to automate to drive the cost down so that we can continue to be competitive. Now is it as cheap as moving to Mexico with lower cost of labor? No. But we will make that plant competitive just because we'll make the capital investments there.
JIM CRAMER: Right.
GREG HAYES: But what that ultimately means is there will be fewer jobs.
The cost of automation is and will be cheaper than hiring people training people and paying them wage that will incentivize them to work productively.
My question for debate is how do you see world economies coping with increased automation?
Those manufacturing jobs in China, India, Mexico will eventually face the same fate as American manufacturing when automation becomes cheaper than the rock bottom wages they pay out.