Corporations Hoard Cash While Americans Go Without A Job

The amount of cash multinational corporations are stashing is at an all time high and economists are wondering why.  A recent Federal Reserve research paper examined some of the reasons.  A big one is multinationals pay no taxes on profits if they park them offshore.  A stash of cash is building and the miser pile is now a mountain.

The Corporations versus the American People Battleground is the Fiscal Cliff

corporate politiciansWe have lobbyists controlling the fiscal cliff debate and the messaging:

By posing as populists hostile to “government social engineering,” the Right succeeded in duping large numbers of middle-class Americans into seeing their own interests – and their “freedom” – as in line with corporate titans.

Corporations are literally posing as grassroots activists with media appearances, twitter accounts, social media, major articles and dedicated websites, all in an effort to hoodwink the American people into signing onto having their social security cut along with their health benefits.

Pundits and Lobbyists all make huge riches ranting and prattling on how someone is stealing food stamps or how Grandma should have her social security benefits cut and denied health care. Corporate controlled financial press puts biased choices for their 1% audience. Those still ethical and objective cannot type fast enough to confront all of the lies on the fiscal cliff. We are being barraged with corporate money funded digital bitstream lies on an minute by minute basis.

The Romney Ad, the Auto Bail Out and China

The political everybody has an opinion not based in fact pundit world is ablaze over a new Romney ad claiming Chrysler is planning on building a plant in China and making Jeeps there. The ad references this Bloomberg article, from October 22nd, which reports Fiat, the majority shareholder in Chrysler, wants to move some production to China.


The Corporate Tax Dodge - Billions in Avoided Taxes While America Goes Broke

The Senate Subcommittee on Investigations held a hearing, Offshore Profit Shifting and the U.S. Tax Code. Did you know U.S. Multinational Corporations have more than $1.7 trillion in untaxed profits stashed as undistributed foreign earnings and keep at least 60% of their cash overseas? That these earnings have increased 400% in the last decade? That corporate tax as a percentage of total Federal revenues has dropped to only 8.9%?

Multinational Corporations Are Hiring....Abroad That Is

U.S. multinational corporations are hiring. The problem is most of that hiring is happening abroad. In an updated BEA summary on sales, investment and employment by Multinational Corporations for 2010, we have a 0.1% increase in hiring for jobs in the United States while MNCs increased their hiring abroad by 1.5%.

us mnc employ

Worldwide employment by U.S. multinational companies (MNCs) increased 0.5 percent in 2010, to 34.0 million workers, with increases in both the United States and abroad. Employment in the United States by U.S. parent companies increased 0.1 percent, to 23.0 million workers, which contrasted with a 0.6 percent decrease in total private-industry employment in the United States. The employment by U.S. parents accounted for roughly one-fifth of total U.S. employment in private industries. Abroad, employment by the majority-owned foreign affiliates of U.S. MNCs increased 1.5 percent, to 11.0 million workers.

U.S. multinationals account for 20% of U.S. hires in the private sector. Yet from 1999 to 2009, U.S. MNCs decreased U.S. employment by 1 million workers while expanding employment abroad by 2.9 million. The U.S. share of employment by MNCs went from 75.2% in 1999 to 67.7% by 2010.

Government Finally Shows What We Already Know - Shipping Jobs Overseas is a Big Problem!

The BEA is finally giving us some interesting data in this BEA economic release, Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures for 2009. Their statistics show U.S. multinationals fired more Americans than those abroad during this recession, even while some of these companies were bailed out by U.S. taxpayers. Additionally, these same corporations clearly have been offshore outsourcing jobs over the last decade.


It all Depends on what you call "Small Business"

Surfing the Internets I found a most interesting post by Chris Gunn, SBA continues to fabricate contracting data. Oh really? It seems the Small Business administration likes to re-categorize large multinational corporations as Mom & Pop operations in order to award them large amounts of government dough!

This year the SBA awarded $93.3 billion to Small Business in 2008. It appears the SBA also missed it's target in small business contract awards by a good 1.5% (ignoring the awarding of contracts to those not qualified).

The numbers are significantly inflated with some of the largest corporations in the world. In some cases the numbers even appear to be the result of fabrication by high-level government officials at the SBA and other government agencies.