Opinion

EXCELLENT TRUMP: Trump Secures $50B Investment From Japanese SoftBank With Free Markets!

   DailyWire.com

Not all headlines are created equal.

The headline “Carrier To Keep 1,000 Jobs In US” is not the same as the headline “SoftBank to Invest $50 Billion to Create 50,000 Jobs In US.” That’s because Donald Trump’s deal with Carrier is the height of crony capitalism; SoftBank’s decision to invest in the United States is, based on the information currently available, simply capitalism working as it should.

In the Carrier deal, Trump cudgeled Carrier into accepting a $7 million tax incentive in return for a $65 million operating loss by threatening Carrier’s parent company with the loss of billions of dollars in federal contracts. That’s crony capitalism. It’s special incentives given to one company, crammed down with the warning that the government will club them into oblivion if they don’t take the deal.

Not so with SoftBank.

According to CNBC.com, SoftBank CEO Masayoshi Son met with Trump at Trump Tower on Tuesday afternoon. Trump then announced that Son would invest $50 billion in the United States in order to create 50,000 jobs. Trump said on Twitter that “Masa said he would never do this had we (Trump) not won the election!” In October, media reported on SoftBank’s $100 billion investment fund set up with Saudi Arabia; CNBC reports that according to Dow Jones, the $50 billion will come from that fund. It was unclear whether the fund would have been slated to invest $50 billion in the United States without Trump’s election, but we have no evidence that Trump was fibbing.

Stocks jumped for both Sprint, owned by SoftBank, and T-Mobile, a mobile competitor Sprint has been attempting to buy despite efforts by the Obama administration to block such a deal. CNBC further reports that Apple might try to be part of the deal, keeping a small number of jobs in the US to get Trump off their back.

Leaving aside the Apple portion of the deal – no company should be threatened for engaging in competitive economic activity – the rest sounds as though Son got assurances from Trump that he would not use the antitrust powers of the feds to try to block a prospective merger between Sprint and T-Mobile. That wouldn’t be a handout to Son. That would be in line with a broader strategy of deregulation that would open up markets to a bevy of companies.

That’s good news.

And that’s legitimate government non-intervention creating a broader market for investment, not the gun-to-the-head, keep-your-jobs-here-or-else routine that we saw with Carrier.

Good for Trump. We can only hope that he follows through on his promises to cut taxes and regulations, creating a thriving business environment for business investments from across the globe.

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