Mr Trump’s little deal in Indiana is a good example. During the campaign, he threatened companies like Carrier with punitive taxes if they set up operations abroad. Bribing them to desist is as bad. It will encourage other companies to follow suit and blackmail politicians for protection money to keep operations in the US, ultimately tending to the routine politicisation of investment.Hell, US States have been bribing companies to stay or locate in their states via tax incentives forever. It has been a race to the bottom, with companies moving out of union-friendly or high wage states to low wage areas. They don't stop moving until wages have reached a threshold just high enough to keep the people from starving (As long as they get food stamps and government paid healthcare). It has helped put the American worker in the shape their in.
Politicising investment makes the world poorer from the FT.