Welcome To Obama's Recovery: Carrier Moving 1400 Jobs To Mexico

Tyler Durden's picture

In his final state-of-the-union address, President Obama famously accused anyone who dares to question the strength of the US economic "recovery" of "peddling fiction."

Shortly thereafter, we learned that the US economy grew at a paltry 0.69% in Q4. Below estimates. 

Perhaps the most disturbing thing about the state of the economy - well, besides the fact that healthcare spending is essentially driving "growth" - is that the labor market has becoming a waiter and bartender creation machine. That's come at the expense of manufacturing jobs, where skilled workers can actually earn a decent living.

Here's what the disparity looks like since 2007:

No fiction "peddling" there. Just numbers. 

Additionally, we've noted the fact that foreign born workers account for the vast majority of job creation in America since the crisis:

On Wednesday, United Technologies decided to reinforce both of these trends all at once, when the company announced it would be eliminating 1,400 jobs at a Carrier plant in Indianapolis in favor of hiring some new "foreign-born" employees - only these "foreign-born" workers will be hired in Mexico.

"Two Indiana plants that make products for the heating, ventilating and air conditioning industry are shifting their manufacturing operations to Mexico, which will cost about 2,100 workers their jobs," The Indianapolis Star reports. "Carrier is shuttering its manufacturing facility on Indianapolis' west side, eliminating about 1,400 jobs during the next three years [and] United Technologies Electronic Controls said that it will move its Huntington manufacturing operations to a new plant in Mexico, costing the northeastern Indiana city 700 jobs by 2018."

Watch below as 1,000 soon-to-be Donald Trump voters react to the announcement: 

Economists called the move "highly unusual." "Today’s surprise announcement was without warning," the mayor said.

Actually, it's neither "highly unusual" or "surprising." Here's why (again from The Star): "Carrier’s workers are separated into a two-tier wage system. A quarter of the workers make about $14 an hour, or about $30,000 a year. The rest make about $26 an hour, or about $55,000, but make well above $70,000 a year with overtime."

Something tells us labor costs will be "slightly" lower south of the border.

Who's "peddling fiction" now?

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g'kar's picture

we need to balance this out by importing 140,000 more welfare recipients from mexico

Richard Chesler's picture

Hillary will preserve Obongo's legacy.

Cucking Funt!


Manthong's picture

I would not have done that without some protection…

the first 30 seconds.. like in the Circle City


Latina Lover's picture

Too bad we can't Move Obama to Mexico!

froze25's picture

Just because I can. Trump 2016. I have had enough.

remain calm's picture

 Stop taking these good paying jobs and giving them to a bunch of spics. Change the tax code, make it competitive for our neighbors, our citizens. Trump. Trump. Trump. Make america great, or at least not a 3rd world country.

Durrmockracy's picture
Durrmockracy (not verified) remain calm Feb 12, 2016 4:02 PM

I remember getting that same speech here in Canada working for a US Telecom... and everyone saying "no our jobs are secure we have the best stats out there" to which I said "bullshit... all they care about is the low CAD (which was reversing then)" and sure enough we were gone...

Haus-Targaryen's picture

Am I the only one laughing about this? Fucking Union employees getting the shaft? Fuck'em.

They've voted for socialism for decades now. They they can all be equal in poverty.

Manthong's picture

Unions supported Clinton, he gave them NAFTA...

Goodbye jobs

I seem to remember something about “A giant sucking sound”.


1000 splendid suns's picture

A strong tarriff policy will stop this mickey mousing around, right quick.

JRobby's picture

Here's your fucking HOPE!!!!!!!!!!

Foreclosure, repo, bill collectors day and night, stress, disease, domestic violence, jail, death........................................

Yea! BarryO Fucko!!!!!!!!

eatthebanksters's picture

Progressve, liberal, Democrat politicians....they all pretend to want to help the little guy while their policies ensure oligarch pals get richer of the backs of the middle class.  If blacks looked at how they have fared economically under the Obama Administration they would vote Republican.  But, the shrill Democrat lies coupled with their empty promises sound too good to pass up for the gullible voter. The wealth divide has never been greater or more disparate in this country.  Record numbers out of the work force and on food stamps; all this has been the result of Progressive policy.  Sorry, don't tell me about Bush, that was 7 years ago.  Obama and his cronies keep taking from the middle class to give to the poor to redistribute to the affluent all the while making their rich buddies even richer.  Time for change...the kind of change that will make America great again, where people are rugged individualists, motivated, hard working and ambitious. The nanny state does not work...

Manthong's picture

Good luck meeting your numbers selling those  $5K high efficiency Carrier heating and air conditioning systems in South America, Europe or Asia when there is no middle class left in the US and we are heating our homes with wood stoves and portable heaters.

COSMOS's picture

Great now they can compete with 200,000 Syrian muslims for jobs next year.  I wouldnt buy a Carrier product this coming year as they phase out production here, I have a feeling the quality will be real bad.

TeamDepends's picture

If peddling fiction is outlawed, only outlaws will peddle fiction.

Dane Bramage's picture

When the going gets peddly, the peddlers go pro.

Shocker's picture

Every company trying to save a buck...

Sad sad

Layoff List: http://www.dailyjobcuts.com


847328_3527's picture

"The most transparent Failed Administration, ever!"

cheka's picture

import tarif or die at the hends of nyc/dc globalization steamroller

CheapBastard's picture

Even the Dems I know disdain Barry at this point. Even the field reporters for NPR said as much during the NH primaries.


Of course, the NPR hosts were "shocked!"

Overfed's picture

Well fuck it. I guess I'll buy that Mitsubishi heat pump instead. At least the Japanese make good shit.

Never One Roach's picture

Obama created more jobs then any other president---too bad he created them in China and mexico!

AldousHuxley's picture

PETRODOLLAR RECYCLING by Kissinger...(Clinton's Mentor)

  1. Export led countries steal American manufacturing jobs by selling their labor for cheap (low regulations, low currency, low education, low standard of living, etc.). they have to
  2. With export profits, they get paid in US dollar and they turnaround and buy USD denominated oil to move goods and people around.
  3. Oil producing countries get paid in US dollar and they buy US Treasuries
  4. US government funds welfare and warfare with US Treasuries. Any left over goes to tax breaks for American manufacturers to outsource jobs.
  5. Repeat

Oil producing countries have to live with powerful colonial powers invading them for oil.

Reserve currency country like USA have to live with manufacturing jobs being disincentivised with strong currency.


Basically politicians and military don't have to care  since there is inifite demand for their bonds and bankers can go shopping for foreign assets with over valued currency. Lower class don't care since they get cheap stuff for cheap.


It won't stop unless you can stop the greed of the lower class. If all laborers lived in 3rd world conditions and not pay premium prices for US retail, then US corporations will kill itself since 3rd world workers sure aren't able to pay those prices.



He has also been the geatest GUN SALESMAN in the history of the United States----(just got my carry permit)

Son of Loki's picture

In all fairness to Barrack, he did say, "I'm outraged" about the Wall Street bonuses ... before he proceeded to hand them the Biggest, Fattest Bonuses in history.


That's something in his favor, right?

nmewn's picture

Union or no union that fucking sucks.

Well then, here's a list of products and services I won't have in my American home...


Theosebes Goodfellow's picture

~"In his final state-of-the-union address, President Obama famously accused anyone who dares to question the strength of the US economic "recovery" of "peddling fiction.""~

From a known lair did you expect anything different? Barry 'Fuckwit' Soetoro thinks that just because he says it it becomes truth. What a clusterfuck asshat. Because after all, who knows better about "peddling fiction" than the Chum wagon gangsta' hisself?

Manthong's picture

Maybe they should rename the line to “Portador”.

That’s “carrier” in espanoly.

The interesting thing about that United Technologies page is the CO2 counter and that they are bragging about how dramatically they are attempting to asphyxiate the plant life on earth..



Stuck on Zero's picture

Carrier needed to move to Mexico to compete with the huge dump of HVAC equipment from China.

847328_3527's picture

Soweto's next book: "The Audacity of Failure."

Bunghole's picture

I wouldn't think about purchasing a Carrier unit over the next year.

Employees are going to be pissed.  Quality will suffer.

I pity these folks making an honest wage.

Amerika is ruined.

tmosley's picture

I'm actually surprised they didn't rush the stage and tear the guy limb from limb.


The anger in this country is palpable. Only a matter of time until people start stringing up these kinds of people on the spot.

AldousHuxley's picture

wont' change a thing. He is just the messenger.

Carrier is owned by UTC..huge player in military industrial complex (aka. sweet jobs for retired US military brass) and also one of the top polluters.


Neo-liberalists like Larry Summers had this to say about manufacturing pollution:


'Dirty' Industries: Just between you and me, shouldn't the World Bank be encouraging MORE migration of the dirty industries to the LDCs [Least Developed Countries]? 

Adahy's picture

It would be a good reply to his message though.

Son of Loki's picture

"If you want to keep your health insurance, you can keep your health insurance. I promise!"


~ Barrack Soweto Obama

MontgomeryScott's picture

@ 'Stuck On Zero':

Nixon. Kissinger. 'Trade Accords' China. 'Most Favored Nation' Status. (blip FORD [Warren Commision Report promise]), Carter, Reagan, Bush, Clinton, Bush, SOETORO, ...



Reduce quality to save money because Union demands are too much. Raise prices and reduce quality FURTHER because Union demands are OVERWHELMING. MANAGEMENT needs an OVERHAUL (bring in 'just-in-time' harvard 'business school' 'new blood'). OUTSOURCE raw materials to third-world communist dictatorships while appeasing Union workers/Union management...

FUCK IT ALL! MOVE the fucking factory to MEXICO! It's all about 'bottom-line', as they were taught! CUT OUT the 'middle-man'! GO DIRECT (where workers/slaves are paid enough to almost eat enough food to last ONE MORE DAY).

Meanwhile, fat and stupid Democratic Union 'members' whine and bitch and pule because THEY can't have the money to buy another 'McMansion' (and retire with benefits equal to the avarous standards that they have been accustomed to).

Fucking $40.00 an hour ($85.00, if you include 'benefits') to screw a nut on a bolt, over and over and over again.

MEANWHILE, the CLINTON FOUNDATION raises money by selling Uranium Mining rights in the CONUS to 'Chinese Investors' (including plots in Oregon and Arizona and Texas and...). Fucking STUPID DEMOCRATIC UNION MEMBERS look to their 'union managers' to 'save them'... LaVoy Finicum is murdered in COLD BLOOD by the cabal, and the UNION MEMBERS ignore THIS news, turning on the twerking shit at the 'STUPORBOWL' flat-screen 60-inch LCD made in CHINA... and BITCH because they aren't 'working any more' (screwing a nut on a bolt for $40.00 an hour, or $85.00 including benefits).


Carrier NEEDED to move production to MEXICO, in order to TRY to compete (as a company) with the HUGE dump of foreign imports (from CHINA).



('Deep Shit', by Jack Handy)

PT's picture

As mentioned before, in my country in the time it took to increase my income by 40%, real estate increased by 400%.  But go ahead, keep blaming the workers.  They could all just sleep on the streets, or the factory floor ... like they do in other countries.

Just concentrate on building a quality product.  Someone else will provide the rich customers.  Well, there is always at least one or two people who 100% agree with those last two sentences...

Martian Moon's picture

And those Chinese HVACs are junk

Four years ago I placed an order with Trane for five units, careful to specify "Not made in China"

Sure enough when they arrived, they were all made in China

I almost refused delivery, and now wish I had because all five units are on their way out, while I have other much older Trane units still running

Fast forward a couple years and Trane dropped the line completely and pulled out of that market segment

Idiots, they have ruined their solid reputation and permanently lost me as a customer

Made in China is the bane of the construction industry

Element's picture

China is a criminal scam. Chinese manufacturing is state scams to steal foreign tech and market share and to have foreign companies pay for the privilege of being shaken down by criminals running the Chinese State. They steal everything. There is no investment, just nationalized appropriations, when all is said and done. They have no respect for property laws, or ownership, they after all use communism as a front for rank criminal theft, appropriating everything and anything they want. Especially anything foreign, and then they also steal the houses and land of Chinese citizens and kill or imprison them if they complain too much about it. What they've done planting bobby traps and undermining standards within global construction is just the tip of the iceberg.

The beauty of it though is they've done it to themselves too. Central and NE China is a very seismically active with massive earthquakes occurring in living memory that killed over 1/4 million in one quake alone. How many of their new buildings are going to survive such a quake, do you suppose, when one finally occurs? 20% maybe?


Moon Martin ... bad news


Martian Moon's picture

I have Chinese friends, and they confirm what you say.  It is a race to make a quick buck and get out ASAP because the culture / governance is one of pure thievery; and we're headed there too, +1 for globalism.

PT's picture

But it was still our top Capitalists who GAVE their production and technology to the Chinese Oligarchs in return for cheap labour. 

And as they dumped the rich workers and replaced them with poor workers, they dumped rich customers and replaced them with poor customers.  Didn't matter to those who came in early.  "My workers are SOMEONE ELSE'S customers."  And this is where we start discussing "Externalities"...

nmewn's picture

Good gawd don't tell the progs about the CO2 counter, they'd be trying to sort out union jobs being shipped to Mexico vs "manmade global warming" until their fucking heads exploded.

Well, on second thought ;-)

MontgomeryScott's picture

'Head Explosion Montage':


DAMN. I was looking for Jamie Dimon and Albert Gore (they weren't 'scripted').

Every time you breathe in O2, you breathe out C02. We are carbon-based life forms, after all. The trees and the plants THRIVE, and the 'global warmists' get a little 'colder'. BAD-ASS ALTERATIVE ROCK SONG:


ROCK ON, 'nmewn'!

Did you ever stop to think that mammals supply the air that plants need to LIVE? PLANTS supply the OXYGEN that MAMMALS require to live, as well. It's the PERFECT 'perpetual motion' machine.

peddling-fiction's picture

<< I vote with my wallet.

<< I am a traitor or a corporate whore. /lol


Yep, voting with your wallet stings the best...

Oldwood's picture

And this is the ultimate "protectionism". It is only the American people who can protect American jobs. Union members believed that they could demand higher wages and prices and American people would support them by buying their products...but they should have known better given that they themselves were too cheap to buy American. I recall back in the seventies when US car manufacturers were getting kicked in the nuts by both Japan and the unions, and when the camera crews panned the employee parking lots of these car companies, there were large quantities of foreign cars there. Union workers themselves were buying foreign made cars!!

America suffers because we have no real principles, at least those that guide us to show some allegiance to our communities and country. Like many here today, they say "fuck it" and do what is best for themselves with virtually no vision of the future. Those trading in markets that they KNOW are going to burn our economy to the ground also say "fuck it" and place their bets in hopes of massive personal profits from whatever may come.

We are experiencing EXACTLY what we DESERVE.

sonoftx's picture

Mr. Oldwood, I beg to differ. Why am I going to support something that is not as good of value. Why would I have not have bought a Harey Davidson in the 1970's? Because they were a piece of shit made by a bowling ball company. The same goes with cars. People will always support quality unless quality is too expensive.

I know Walmart is a hated name. But it was a great business plan, implemented by a no name, no account, general manager who had a bright idea. It is a success. But like all things it will fail. Or should fail, if the government lets it.(I shop at HEB for most stuff and go to Walmart for deals)

I think that it is the problem. We do not have cycles any longer where the dumb money is replaced with the smart money. The bull is replaced by the bear. This bull is like the Everready bunny, he just keeps going, and going, and going.

I love competition. If we are not competetive then we fail. As said above, if all the business leaves then who do they sell their product to? There must be a reset back to the mean.

I may not understand at all but macroeconomics IS microeconomics and vice-versa. I fear that we, myself included, will not stand. We will think about it but by the time we realize it it will be too late, we will all go along with SDR because it "is the sensible thing to do." And who wants to die when there is such a "sensible" alternative.

cheka's picture

import tariff is the answer -- NO MATTER WHO MAKES IT.  carrier pays fee to cross the river with its mexico crap

result = no more outsourcing

result 2 = tariff revenue flows into treasury, allowing income tax on wages to be cut/eliminated


Oldwood's picture

I support the notion of protectionist trade polices, but find myself hesitating given the corrupt nature of government which can effectively pervert ALL of the best of intentions. It is these good intentions that are always the means to our ends. Only WE can protect ourselves. If we choose to purchase the "greater value" over that produced by our brothers and neighbors, then so be it. We get what we get. We want freedom but only at the expense to everyone else. We want to dictate what businesses can sell and where they can produce but want the freedom to buy from whom and from where ever we please.

PT's picture

Debt Jubilee plus crash the price of real estate.  Then you can compete with any other country in the world.  Too hard?  Then simply crash the US dollar. 

So what it really comes down to is this:  What do you NEED to IMPORT?  If you don't need to import anything, you can be as rich as you want.  If you NEED vital resources, then you're kind of screwed, depending on the desperation of the exporting country.