OPINION - Editorial

OTHERS SAY: The canary and Caterpillar: What 120 Texas layoffs tell us about China tariffs

Just over a week ago, Caterpillar laid off 120 workers at its plant in Victoria, Texas. That concerned us, not just because those are 120 Texans suddenly unemployed, but also because Caterpillar is one of those companies that jumps off the news page. It's a bellwether. Because the company makes equipment used in construction, its success often forecasts growth. As goes Caterpillar, so goes the economy.

We've chronicled in previous editorials how trade tariffs have cost Texas farmers. Now, Texas industrial workers are taking their place in that line.

There's a familiar metaphor that may help us here: the coal mine canary. Caterpillar is important not because it's making economic news, but because it's announcing it. The Caterpillar layoffs could well be a signal of a weakening economy. It would be wise to ignore the chirping of politicians and pay attention to the economic cues coming from the trade war's front lines.

Editorial on 11/15/2019

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