Welcome to the weekly roundup of great articles, facts and figures. These are the weekly finds that made our eyes pop.
You may wonder why to create jobs, government doesn't just stop offshore outsourcing them? We sure do. With that, the theme of this week's links is offshore outsourcing.
Lessons of the Chinese Invasion
David Sirota pulls out some astounding facts of state and local governments literally offshore outsourcing contracts to China:
Then news hit that San Francisco is importing its new bay bridge from China. Then came The New York Times dispatch about the Big Apple awarding Chinese state-subsidized firms huge taxpayer-funded contracts to "renovate the subway system, refurbish the Alexander Hamilton Bridge over the Harlem River and build a new Metro-North train platform near Yankee Stadium."
Astounding as all of that is, it was quickly topped by news last week reminding us that the new Martin Luther King monument in Washington was designed by a Chinese government sculptor and assembled by low-wage Chinese workers.
Offshored Jobs Numbers Way Too Low
Public Citizen noting more bad trade deals are simply more offshore outsourcing deals, quoted some government statistics. These statistics are simply way too low. The reality is corporations don't report, release, admit and hide how many jobs they either directly offshore outsource or create overseas instead of the United States. That said, even the small numbers reported are damning. The corporations pushing more bad trade deals are offshore outsourcers.
Larry Summers Hearts Offshore Outsourcing
Salon outlined some of the hidden agendas going behind the scenes by large corporations. They also quote Larry Summers:
There are those today who would resist the process of international integration; that is a prescription for a more contentious and less prosperous world," stated Summers. "We should not oppose offshoring or outsourcing.
Another example that team Obama is really the political branch of multinational corporations.
Speaking of Jobs
IBM signs yet another $1 billion offshore outsourcing contract, cities are now offshore outsourcing and even hotels. Of course the Federal Government does and India is salivating at more on the way. Did anyone mention we have a jobs crisis in the United States?
Corporations Push for Tax Breaks, Then Offshore Outsource the Jobs
Even conservatives get what's going on. It's only politicians who refuse to acknowledge this:
Several top U.S. corporations are pushing for job-creation tax breaks while working to hide the number of jobs they’ve sent overseas.
Time Machine: Some Real Data Corporations Moved Jobs Offshore
Just a couple of Economic Populist articles showing U.S. corporations are creating jobs, it's just in other countries. We actually have government data proving what we already know, jobs are being offshore outsourced in droves. So does this study. You can get some policy history as to to why from Numerian's A Little Extortion Never Hurts the Bottom Line.
Business Won't Hire Despite Jobs Plan
Here's the thing, we have a jobs crisis. Guess what. half a trillion dollars isn't enough to get businesses to hire people. That nasty thing called weak demand keeps popping up.
Obama Plan Will Destroy Social Security
Seems this site isn't the only one pointing to the defunding of social security.
Tax Cuts Will Not Create Jobs
Finance people aren't stupid and even they are pointing out payroll tax cuts will not create jobs.
Consider it a form of horse trading — tax cuts for jobs. There is only one small problem with this strategy: temporary tax cuts rarely result in new jobs and always result in less tax revenue.
With Friends Like These.....
Not only do tax cuts not create jobs, but Democrats have no spine to promote what actually would:
In a recent study for Demos, the economist Philip Harvey modeled the effects of spending $100 billion on direct job creation versus unemployment benefits and food stamps. He found that the funds spent on job creation would produce 1,519,000 jobs overall — 1,075,000 created immediately by government and 444,000 created over two years through in-direct stimulus effects. In contrast, such spending on food stamps and UI would create 568,000 jobs.
Treasury is Considering Tax Holiday for Corporations Who Offshore Outsource
A corporate tax holiday is one time act which enabled corporations to bring back profits parked offshore tax free into the United States. Not only did the 2004 foreign repatriation tax holiday not create any jobs, lobbyists are demanding another, complete with lying fictional white papers and spin. So, who else would cave and say ok? Why Treasury Secretary Geithner of course:
The Treasury Department is considering a proposal to eliminate some but not all taxes on the overseas profits of U.S. multinational companies, a central element of the administration's broader plans to overhaul the corporate-tax code, according to two people familiar with the deliberations.
U.S. businesses have pushed hard to exempt all overseas earnings from U.S. taxes, claiming the current system puts them at a disadvantage to foreign competitors.
The taxation of overseas income is a political hot potato. Liberals and trade unions have warned that eliminating U.S. taxes on overseas earnings could encourage businesses to shift operations and jobs overseas. ...
A Simple Income Tax
David Cay Johnston outlines taxes in China, which more model the United States before 1943. Finland also has a 1 page simple income tax form. A prime example on how the U.S. tax code, especially the corporate tax code is now loop-holed and rigged for the uber-rich.