Wednesday, 4 January 2017

Wonkbook: The myth and reality of Donald Trump's job claims

By Ylan Q. Mui and Steven Overly President-elect Donald Trump took aim at the U.S. auto industry Tuesday as he continued an intervention into corporate America that aims to bolster job growth but is also vulnerable to exaggerations and oversimplifications. On Twitter on Tuesday morning, Trump singled out General Motors for assembling some of its Chevrolet …
 
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President-elect Donald Trump talks with workers during a visit to the Carrier factory, Thursday, Dec. 1, 2016, in Indianapolis, Ind. (AP Photo/Evan Vucci)

President-elect Donald Trump talks with workers during a visit to the Carrier factory, Thursday, Dec. 1, 2016, in Indianapolis, Ind. (AP Photo/Evan Vucci)

By Ylan Q. Mui and Steven Overly

President-elect Donald Trump took aim at the U.S. auto industry Tuesday as he continued an intervention into corporate America that aims to bolster job growth but is also vulnerable to exaggerations and oversimplifications.

On Twitter on Tuesday morning, Trump singled out General Motors for assembling some of its Chevrolet Cruze models in Mexico and selling them in the United States, reiterating his threat to impose punitive tariffs on imports. Shortly afterward, Trump celebrated an announcement by Ford that it was canceling a $1.6 billion factory in Mexico and using some of the money to expand production in Michigan.

"Instead of driving jobs and wealth away, AMERICA will become the world's great magnet for INNOVATION & JOB CREATION," Trump tweeted.

"The automotive industry has always been a symbol for the status and health of manufacturing as a whole in the U.S.," said Jeremy Acevedo, a senior analyst for Edmunds.com. "If Trump can demonstrate that he influenced a company like Ford or GM to make a business decision in support of his 'pro-growth' strategy, his likely hope is that it could have a domino effect to pressure other companies and industries to follow suit."

But the business decisions that Trump has criticized and the deals he has trumpeted are not so straightforward.

Read the rest on Wonkblog.


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