Skip to main content

View Diary: Obama's Misunderstanding of Corporate America (576 comments)

Comment Preferences

  •  Big Business Operates in a Global Economy (2+ / 0-)
    Recommended by:
    slatsg, wayoutinthestix

    with vastly more international business producing colossally grater profits than the domestic market can or ever will do.

    Therefore, there is little incentive for them to promise anything to ease domestic unemployment.  But it's also why there's much interest in corporate income tax reform on foreign profits.

    How about jobs creation for tax breaks?  Think those jobs will be in America?  Look again.  Look at Caterpillar.

    More than half of the 15,000 people that Caterpillar Inc. has hired this year [2010] were outside the U.S. UPS is also hiring at a faster clip overseas.

    So what will America get for Obama's tax rate cut/loophole closing proposal in terms of jobs creation -- that Major Theme of his SOTU speech last month?  More of the same.  Little of anything.

    The Economic Policy Institute, a Washington think tank, says American companies have created 1.4 million jobs overseas this year, compared with less than 1 million in the U.S. The additional 1.4 million jobs would have lowered the U.S. unemployment rate to 8.9 percent, says Robert Scott, the institute's senior international economist.

    Or take a look at DuPont.

    DuPont, which wowed the world in 1938 with nylon stockings. Known as one of the most innovative American companies of the 20th century, DuPont now sells less than a third of its products in the U.S. In the first nine months of this year, sales to the Asia-Pacific region grew 50 percent, triple the U.S. rate. Its stock is up 47 percent this year.

    DuPont's work force reflects the shift in its growth: In a presentation on emerging markets, the company said its number of employees in the U.S. shrank by 9 percent between January 2005 and October 2009. In the same period, its work force grew 54 percent in the Asia-Pacific countries.

    "Things" go better with Coke; just not American "things."

    Coca-Cola CEO Muhtar Kent often points out that a billion consumers will enter the middle class during the coming decade, mostly in Africa, China and India. He is aggressively targeting those markets. Of Coke's 93,000 global employees, less than 13 percent were in the U.S. in 2009, down from 19 percent five years ago.

    Global economy will dictate America's employment picture.  Not tax breaks for corporations.

    "ingratiation and access . . . are not corruption." -- Justice Kennedy (Citizens United v. Federal Election Commission, 2010)

    by Limelite on Mon Feb 07, 2011 at 04:34:58 PM PST

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site