Skip to comments.U.S. Firms Keen to Add Foreign Jobs
Posted on 11/22/2011 10:36:04 PM PST by WilliamIII
U.S.-based multinational corporations added 1.5 million workers to their payrolls in Asia and the Pacific region during the 2000s, and 477,500 workers in Latin America, while cutting payrolls at home by 864,000, the Commerce Department reported.
The faster growth abroad was concentrated in emerging markets, such as China, Brazil, India and Eastern Europe, according to economists Kevin Barefoot and Raymond Mataloni, of the U.S. Commerce Department.
"Judging by the destination of sales by affiliates in those countries," the economists wrote in a recent survey, "the goal of the U.S. multinational corporations' expanded production was to primarily sell to local customers rather than to reduce their labor costs for goods and services destined for sale in the U.S., Western Europe and other high-income countries."
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Reduce 2nd highest corporate taxes, reduce burdensome regulations and paperwork, get rid of unions. All these
conditions are favorable in Asia to corporations.
He absolutely WAS correct.
Georgia has been the textile industry hub of the world for centuries, nearly every last factory is in Brazil now.
Now to hear some Freepers, and Neal Boortz and even Rush sometimes... we are all supposed to be too good and smart as Americans for labor jobs. But that is just not the case. First of all, many would have to HAVE a labor job to put ourselves through college. Secondly, not everyone can manage the intellectual part of it. Sorry, but there are just some under-intellegent folks and they deserve to eat too.
The government has destroyed this country with this globalist crap. I don’t care how cheap a product is, if you can’t afford it, it’s worthless.
Sick of hearing about corporate tax rate. It’s a meme that people are repeating like parrots.
That might have been the case a few years back, but tell me how much taxes GE paid last year.
And then tell me how they still moved a factory to China.
GE got tax credits for moving the factory to China.
Exactly my point!
I hear “Lower corporate tax rate to encourage them to want to stay here” and we even GIVE them money (in the form of tax credits) and they don’t stay.
All it’s doing is giving them more profit because they get the tax break and STILL get slave labor.
I’m telling you, conservatives have GOT to get over the mantra that has been spouted for years. Globalism is not capitalism.
I probably wasn’t clear, but I mean we have to change the tax system because of all the “multi-national trade” crap that ENCOURAGES businesses to move there to get us cheap (and cheaply made) crap.
SOMETHING has got to be fixed and it isn’t that we are over charging corporations in taxes.
We gave them money in order to encourage them to move the jobs off shore.
Globalism is wealth redistribution.
Something has to be fixed AND the corporate tax rates need to be reduced. There is a LOT of money overseas which will never come back because of the corporate tax rate.
They are keeping the corporate tax rate high in order to prevent the money from returning. Wealth redistribution.
The $1 dollar an hour labor seems to be a big incentive for off-shoring, regardless of what our tax rates and paperwork burdens are in this country. Americans can compete with China by lowering our pay rates by 90 percent.
Either that, or maybe some active laws to punish off-shoring. The Republican Party once believed in protecting and growing American industry. That was Lincoln’s position, Teddy Roosevelt’s — even Reagan’s to a signifant degree. Is our current free trade ideology — at least when it extends to the off-shoring of American jobs — destroying the economy? The question needs to be asked.
Straight labor rates are hardly the only factor.
Unions are already gone in the US private sector. You ignore the poverty wages in Asia that we have to compete against. This isn’t free trade, it’s transfer of good-paying American jobs to countries where people work for nothing.
The cost of labor is the overwhelmingly major cost of any organization.
Well said. Those that claim tax rates cause our unemployment are unable to answer that our tax rates are the lowest in at least 50 years but our unemployment is the highest. Job exporting companies have put money before country.
If you only look at the hourly rate when determining cost then you are missing the boat.
I run a business and know a little bit about what labor and projects cost me.
“Those that claim tax rates cause our unemployment are unable to answer that our tax rates are the lowest in at least 50 years”
Our corporate tax rates are the highest. Personal income taxes are lower than some periods and much higher than other periods.
Companies and the govt work hand in hand. The govt is doing what the large companies lobby for.
If we go to protectionism, those 91% of people with jobs (9% unemployment) will experience a much lower standard of living. How would you like to pay $199.95 for a pair of sneakers and $89.99 for a cotton shirt sewn in NYC? I would’nt.
We have to face the reality of the world market, world wages and world prices. The monopoly we had after WWII is gone for good. Then the manufacturing giants of the time, Germany & Japan lay in bombed out ruins. While our factories were untouched. Those glory days are history.
But I am not hopeless for the future of our country. I have lived and worked in 3 different countries, and traveled to dozens. Nowhere have seen anything which compares with innovativeness of Americans. We will do just fine if the tax rates for corporations will be reduced from 2nd highest in the world down to 10-15% range. And the burdensome regulations need to be removed from our corporations. We work harder than most. We have one language versus 17 in EU and 13 in India. We have a free democratic system versus autocracy and central planning in China. China’s real estate bubble makes ours look like a Sunday picnic.
“How would you like to pay $199.95 for a pair of sneakers and $89.99 for a cotton shirt sewn in NYC? I wouldnt.”
The percentage of Americans who have jobs is far fewer than the 91 percent you claim. The feds are camoflaging the true level of unemployment.
See, eg: Fake Unemployment And Inflation Figures Sustain The Illusion Of An Economic Recovery
If only 9 percent of Americans are unemployed, why do I know so many people who don’t have jobs?