While America still suffers with repressed wages, increasing poverty and a vanishing middle class, Wall Street and big Multinational Corporations are having a party. Bonuses increased 15% and are back to their pre-financial crisis excesses Corporations hording cash offshore increased 11.8% in 2013 to a whopping $1.95 trillion.
According to the New York State Comptroller, the average bonus paid on Wall Street was $164,530 in 2013, the third highest on record. Below is a graph of Wall Street's average bonus and as we can see the greed and excesses just continue. The average 2012 salary on Wall Street was $360,700. This is 5.2 times larger than the average New York City private sector salary of $69,200.
The 2013 bonus pool was $26.7 billion spread over 165,200 workers If an individual works 50 weeks, 40 hours a week for the $7.25/hr minimum wage, the gross annual income is $14,500. Wall Street accounts for 22% of private sector salaries in New York City while being only 5% of those employed.
If Wall Street bonuses weren't bad enough, shipping good jobs overseas is clearly quite profitable for multinational corporations. According to Bloomberg, corporations are stockpiling cash, tax free, abroad and added $206 billion to their coffers in 2013. The offshore cash holdings now are $1.95 trillion. Three of the biggest labor arbitragers and offshore outsourcers of them all, Microsoft, IBM and Apple, account for 18.2% of the 2013 offshore cash holdings increase. All of these companies have fired top tier Scientists and Engineers and replaced them with cheaper foreign guest workers as well as moved R&D jobs offshore. Their actual production and manufacturing jobs are long gone to India and China. These companies also repackage copyrights, trademarks and patents into SPVs and park them offshore in the Cayman's and other tax havens. According to a Congressional Research Service report, multinationals reported 43% of their 2008 overseas profits were in such tax havens. Profit shifting is what it's all about instead of contributing to America and even innovating new products.
Bloomberg created a graphic, reprinted below. Their visual really tells the story on how multinational corporations don't give a damn about America or even their own employees. They live and breathe for their tax avoidance weasel game.
Congress has stalled on doing anything about the U.S. corporate tax code and corporations lobby to bring the money back tax free, only to distribute amount shareholders. Stopping their profit shifting, tax avoidance global game is simply out of the question for them as is investing in the United States. It seems at all costs these companies do not want to invest in America and most of all hire U.S. citizen workers. The reluctance almost seems like a corporate cultural thing, since America does have, after all, the best universities in the world with a highly skilled U.S. citizen labor force. Last year a GAO report showed the corporate tax code is a giveaway to mutlinationals. Yet in spite of repeated Congressional hearings, damning studies, and Bloomberg's outrageous 2013 statistics tabulations, nothing happens. Congress does nothing in the national interest regarding these corporations. Nothing changes while America continues to be hollowed out and great people still cannot find good jobs.