PHILADELPHIA (CBS) – Economist Chris Butler reacted to President-elect Donald Trump’s announcement that he has reached a deal that will keep over 800 jobs at a Carrier plant in Indiana, telling Chris Stigall on Talk Radio 1210 WPHT that he thinks the next administration will focus on changing regulations to help businesses instead of striking individual bargains.
“He addresses the issues that are forcing American companies to re-locate in Mexico and Asia and other low cost providers. He’s said it before. He’s said it’s the tax code here and it’s the regulatory burden. It’s the cost of healthcare, among other things. Those things need to be addressed, so right now, the media is focusing, as well they should, on this Carrier deal and what he said about there being consequences for companies that leave.”
He wants to see a change in perspective in how the White House views the business environment in the country.
“Donald Trump has also been the guy that said, look, we need to address the core reason for the move. That’s the guy I want to focus on…Let’s hope that, in his heart of hearts, he does recognize the bigger story is not how we force or sweeten deals to keep Carriers or the world here, it’s instead looking at the reasons that might make a company want to move in the first place.”
Butler also pointed out that states competing for business from companies is a good thing that will help the economy.
“As far as interstate competition goes, and this deal with Carrier is probably an Indiana deal, but the interstate competition with taxes, hey, have at it. Because what it does is it keeps the overall tax rates amongst the states low. They’re in a competitive environment.”