American Companies Are Creating More Jobs…Overseas

With all the rhetoric about creating jobs and “getting the economy moving again” from

Shanghai bustling with American jobs

the candidates on both sides, here is an article, from thinkprogress.org (originally from the Wall Street Journal), showing that American companies are actually creating more jobs overseas. So, the candidates are not saying weather they are talking about creating jobs in the U.S., or creating more jobs overseas. It’s a fine line but, apparently, from the facts in this article, they are talking about jobs overseas.

I don’t know about you, but I haven’t heard any of them saying that they’ll stop the jobs from going overseas, or that they’ll bring them back. Well, let me correct that a little. Obama did say he wants to create tax incentives to bring them back. How winpy is that? The goverment created tax incentives to encourage businesses to go overseas through entities like OPIC, and others, years ago. This is a fight that goes back to the Kennedy administration when Kennedy used the power of government to create real, productive, well paying jobs in America. The Kennedy policy (of keeping companies in America), unfortunately, lost that battle.

All the presidential candidates are professing to leave the economy up to the private sector, that the goverment won’t intervene. Yet, isn’t it the private sector that got us into this economic mess? The private sector policy, pressured by Wall Street, is to downsize, lay people off, send jobs overseas, cut health care benefits, cut pay for workers while making them work more hours, lower wages overall and give hugh bonuses to executives. Isn’t that what we as voters want to change? Isn’t that the problem with the economy? How can anyone campaign for more jobs while letting the private sector wreak more havoc on American working families?

Here are some facts from the article:

“Those companies, which include Wal-Mart Stores Inc., WMT +2.70% International Paper Co., Honeywell International Inc. and United Parcel Service Inc., boosted their employment at home by 3.1%, or 113,000 jobs, between 2009 and 2011, the same rate of increase as the nation’s other employers. But they also added more than 333,000 jobs in their far-flung—and faster-growing— foreign operations.
The companies included in the analysis were the largest of those that disclose their U.S. and non-U.S. employment in annual securities filings. All of them have at least 50,000 employees. Collectively, they employed roughly 6.4 million workers world-wide last year, up 7.7% from two years earlier. Over the same period, the total number of U.S. jobs increased 3.1%, according to the Labor Department.”

In reality, the government can simply create laws to bring the jobs back and stop new ones from going over there. It can take away the tax benefits from going over seas. It can tax them for putting Americans out of work. It can raise tariffs on imported goods created by overseas American jobs. It should be noted that Abraham Lincoln had the highest tariffs of all time in order to protect American markets.

Now, granted, in this interconnected world, there are cases where some jobs need to go overseas for specific markets, just as foreign companies have set up in the U.S.  But, the current trend of sending jobs over there just to make more money is bad economics.  It makes a few people rich for a while, but ultimately leads to collapse, kind of like where we are now.

Are you buying any of the rhetoric of these candidates about creating jobs in America?  What would you do to bring jobs back?

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