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Big U.S. Firms Shift Hiring Abroad
WSJ ^ | 19 April 2011 | DAVID WESSEL

Posted on 04/22/2011 10:34:53 AM PDT by Palter

Work Forces Shrink at Home, Sharpening Debate on Economic Impact of Globalization

U.S. multinational corporations, the big brand-name companies that employ a fifth of all American workers, have been hiring abroad while cutting back at home, sharpening the debate over globalization's effect on the U.S. economy.

The companies cut their work forces in the U.S. by 2.9 million during the 2000s while increasing employment overseas by 2.4 million, new data from the U.S. Commerce Department show. That's a big switch from the 1990s, when they added jobs everywhere: 4.4 million in the U.S. and 2.7 million abroad.

In all, U.S. multinationals employed 21.1 million people at home in 2009 and 10.3 million elsewhere, including increasing numbers of higher-skilled foreign workers.

The trend highlights the growing importance of other economies, particularly in rapidly growing Asia, to big U.S. businesses such as General Electric Co., Caterpillar Inc., Microsoft Corp. and Wal-Mart Stores Inc.

The data also underscore the vulnerability of the U.S. economy, particularly at a time when unemployment is high and wages aren't rising. Jobs at multinationals tend to pay above-average wages and, for decades, sustained the American middle class.

Some on the left view the job trend as reason for the U.S. government to keep companies from easily exporting work overseas and importing products back to the U.S. or to more aggressively match job-creating policies used in some foreign markets. More business-friendly analysts view the same data as the sign that the U.S. may be losing its appeal as a place for big companies to invest and hire.

"It's definitely something to worry about," says economist Matthew Slaughter, who served as an adviser to former president George W. Bush. Mr. Slaughter, now at Dartmouth College's Tuck School of Business, is among those who think the U.S. has lost some allure.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Foreign Affairs
KEYWORDS: economy; giantsuckingsound; globalization; offshoring
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1 posted on 04/22/2011 10:35:02 AM PDT by Palter
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To: Palter

we need a president who will lead the country back to

taxes and regulations that encourage american jobs.


2 posted on 04/22/2011 10:55:18 AM PDT by ken21 (dem taxes + regs + unions = jobs overseas.)
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To: ken21

We need Americans to except lower wages and a lower standard of living. It’s the only way to compete.


3 posted on 04/22/2011 11:05:23 AM PDT by Wolfie
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To: ken21

This is why Trump can win.


4 posted on 04/22/2011 11:06:30 AM PDT by dfwgator
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To: Palter

The thing I love about American capital is that it has no loyalty to this country unless it asks the US taxpayer to bail them out with bail outs, low-interest loans, grants, subsidies, government contracts and special provisions in the tax code.

Don’t demand the US government protect your assets overseas when these foreign governments want to nationalize your assets.

My philosophy is American capital can do what it wants, but don’t ever come hat in hand to the federal government for anything.

Capitalism is good; crony capitalism is not good.


5 posted on 04/22/2011 11:08:29 AM PDT by radpolis (Liberals: You will never find a more wretched hive of scum and villainy)
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To: dfwgator

agree.

and palin.


6 posted on 04/22/2011 11:08:54 AM PDT by ken21 (dem taxes + regs + unions = jobs overseas.)
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To: Wolfie

to accept lower wages is the argument of the globalists’

“harmonization”.

maybe, but with increased productivity by new technology,

maybe not.


7 posted on 04/22/2011 11:11:14 AM PDT by ken21 (dem taxes + regs + unions = jobs overseas.)
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To: ken21

“we need a president who will lead the country back to
taxes and regulations that encourage american jobs.”

If GE was not cited, I might think you had a point.


8 posted on 04/22/2011 11:25:03 AM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
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To: ken21

“...taxes and regulations that encourage american jobs.”

Please name a few taxes and regulations that encourage jobs. I cant think of a single tax or regulation that is esponsible for creating a job. Unless of course you include governemnt make work jobs.


9 posted on 04/22/2011 11:30:41 AM PDT by FreedomNotSafety
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To: ken21

“...taxes and regulations that encourage american jobs.”

Please name a few taxes and regulations that encourage jobs. I cant think of a single tax or regulation that is esponsible for creating a job. Unless of course you include governemnt make work jobs.


10 posted on 04/22/2011 11:30:47 AM PDT by FreedomNotSafety
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To: Wolfie

We need Americans to except lower wages and a lower standard of living. It’s the only way to compete


Spoken like a true UN Globalist Free Trade Communist

And, who will buy the products in your low wage, low standard of living Communist Utopia?


11 posted on 04/22/2011 11:34:03 AM PDT by UCFRoadWarrior (Karl Rove = Karl Marx)
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To: dfwgator

This is why Trump can win.


This is why the media on both the left and right are attacking Trump

Both the DNC and GOP support this Free Trade Communism nonsense. I am tired of the loss of jobs and the loss of soverignty. I do not want to be Communist Chinese or Drug Cartel Mexico


12 posted on 04/22/2011 11:36:15 AM PDT by UCFRoadWarrior (Karl Rove = Karl Marx)
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To: FreedomNotSafety

semantics.


13 posted on 04/22/2011 11:42:40 AM PDT by ken21 (dem taxes + regs + unions = jobs overseas.)
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To: radpolis

We’ve lost our ‘innovation’ mojo.
US is only 5% of world population. That means 95% of our ‘customers’ are outside of the country.
How do we get to that market?
Ever think these ‘customers’ are just like us. They want the products AND the jobs?


14 posted on 04/22/2011 11:49:49 AM PDT by griswold3 (Character is destiny)
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To: UCFRoadWarrior; All
I love it when Freepers who claims to be conservative but speaks like a communist when it comes to economics.. We need less regulation not more..

People who supports Trump is a Chump...
15 posted on 04/22/2011 11:52:33 AM PDT by KevinDavis ( Anyone who backs Trump is a chump..)
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To: Palter

It would seem to me that a tax policy could be used to encourage companies to continue to produce their product in the United States. If companies were taxed for their offshore profits, but not for their onshore profits, they might think differently.

While I’m not generally in favor of taxing corporations, it can be argued that those kinds of taxes are really nothing more than consumption taxes, since only the purchasers of that company’s product pay the tax.

I truly believe a flat tax, with perhaps a simple one or two step progression of rates is the fairest way to tax people and corporations.

Gross earnings < $20,000 = 5% tax
> $20,000 < $200,000 = 10%
> $200,000 = 15%
The above rates would be adjusted for inflation, but gross incomes would be the measuring stick. No deductions for anything.


16 posted on 04/22/2011 11:55:02 AM PDT by khenrich (And people thought Jimmy Carter was our worst president........)
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To: dfwgator

This is why Trump SHOULD win (if he is sincere).


17 posted on 04/22/2011 12:02:40 PM PDT by 353FMG (The M1911 is mightier than the sword.)
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To: Wolfie

You didn’t expect reasoned responses, did you?


18 posted on 04/22/2011 12:09:27 PM PDT by r9etb
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To: radpolis
Capital is capital; it has no nationality, no loyalty, and no compassion. No nation may lay claim to it, in fact, those that do will only hasten it's departure from their shores. It flows inexorably to it's highest valued use, and those who think they can stop it are fools. It can only be coaxed, never coerced.
19 posted on 04/22/2011 12:17:10 PM PDT by Red Boots
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To: Wolfie

There are all sorts of ways to compete.

Better Quality
Lower Prices
More Productivity
Better Innovation

The cost of labor in producing an automobile in the USA makes up about 13% of the manufacturing costs or about 6.5% of the retail price.

(http://msl1.mit.edu/classes/esd123/vyas.pdf)

US made goods are expensive in large part because of all the excessive constraints to free market.

Allow a company to produce cars without interference from unions, the EPA, OSHA or the army of blood sucking tort lawyers, but constrained by honor and decency (Yes, Virginia, these did exist prior to the alphabet agencies or the Bar Association.) and you would see US made products compete world-wide.

BTW, if the “Quantitative Easing” keeps printing funny money, the US Dollar will be so devalued that US Good will be very cheap on the world market.


20 posted on 04/22/2011 12:39:21 PM PDT by BwanaNdege ("If we don't stand for something, we shall fall for anything" - Peter Marshall)
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