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US Companies Are Furiously Creating Jobs... Abroad

Tyler Durden's picture


Whatever one thinks of the practical implications of the Kalecki equation (and as we pointed out a month ago, GMO's James Montier sure doesn't think much particularly when one accounts for the ever critical issue of asset depreciation), it intuitively has one important implication: every incremental dollar of debt created at the public level during a time of stagnant growth (such as Q1 2012 as already shown earlier) should offset one dollar of deleveraging in the private sector. In turn, this should facilitate the growth of private America so it can eventually take back the reins of debt creation back from the public sector (and ostensibly help it delever, although that would mean running a surplus - something America has done only once in the post-war period). This growth would manifest itself directly by the hiring of Americans by US corporations, small, medium and large, who in turn, courtesy of their newly found job safety, would proceed to spend, and slowly but surely restart the frozen velocity of money which would then spur inflation, growth, public sector deleveraging, and all those other things we learn about in Econ 101. All of the above works... in theory. In practice, not so much. Because as the WSJ demonstrates, in the period 2009-2011, America's largest multinational companies: those who benefit the most from the public sector increasing its debt/GDP to the most since WWII, or just over 100% and rapidly rising, and thus those who should return the favor by hiring American workers, have instead hired three times as many foreigners as they have hired US workers. Those among us cynically inclined could say, correctly, that the US is incurring record levels of leverage to fund foreign leverage, foreign employment, and, most importantly, foreign leverage.

Wonder why the BLS is forced to use such now pathetic trickery as collapsing the labor pool by double the natural rate of growth of the labor pool to make it seem that US unemployment is declining? Simple. The WSJ explains:

Thirty-five big U.S.-based multinational companies added jobs much faster than other U.S. employers in the past two years, but nearly three-fourths of those jobs were overseas, according to a Wall Street Journal analysis.


Those companies, which include Wal-Mart Stores Inc.,  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.

Spin on:

The data show that global companies, aided by overseas revenue, are faring better than purely domestic companies during the economic recovery. Nearly 60% of the revenue growth between 2009 and 2011 at the companies in the Journal's analysis came from outside the U.S.


Partly as a result, these companies are more likely to focus their resources and people outside the U.S. The nation's largest private-sector employer, Wal-Mart, added 100,000 jobs outside the U.S. last year; its head count in the U.S. has been flat at 1.4 million since 2007.

Spin off: these companies, benefiting from ZIRP in the US, and exporting of inflation, and thus rising prices, and wages in the rest of the world, can fund their foreign operations domestically at virtually no cost, courtesy of the US taxpayers and savers, who are getting the short end of the stick day after day with a savings rate of 0.001%. And, naturally, these companies which only focus on their return on equity and return to shareholders, will in turn take advantage of this arb, and hire cheap labor globally, there where US debt issuance has the most marginal, yet indirect, impact.

In other words, in an ideal world, the offset to soaring US leverage would be that US corporates, with balance sheets sparkling clean, would return the favor for the public sector burden, and hire US citizens who have no interest (i.e., fixed) income, and certainly no dividend income. Instead, the corporates defect most blatantly, an act nobody can blame them for as they do merely what is efficient, and hire foreigners, or those who do not have to suffer the consequences of ZIRP.

Alas, one will read none of this in the WSJ piece which continues as follows:

Economists who study global labor patterns say companies are creating jobs outside the U.S. mostly to pursue sales there, and not to cut costs by shifting work previously performed in the U.S., as has sometimes been the case.


"If you want to capture market share in China, you're going to have to hire lots of locals," says Arie Lewin, a professor at Duke University's Fuqua School of Business who has studied outsourcing and offshoring. "You just can't export that stuff."


Jobs added overseas "are not necessarily at the expense of U.S. workers," adds Martin Baily, of the Brookings Institution, a former economic adviser to President Bill Clinton. Mr. Baily says it is "almost inevitable" that the biggest and most successful U.S. companies would look beyond the nation's borders.

One can be sure however, that the topic of job creation geography will be a very tangible one in the upcoming presidential debates:

Where American companies are creating jobs is a hot political issue. President Barack Obama has proposed tax benefits for companies to create jobs in the U.S., and tax penalties for those with large operations in other countries. His tax-overhaul plan—which has no real chance of passing Congress this year—would require, for the first time, that U.S. companies operating overseas pay a minimum tax on their foreign earnings.


Republicans, including presumptive presidential nominee Mitt Romney, say excessive taxes and regulations are driving jobs overseas. Mr. Romney has suggested cutting the nation's 35% corporate tax, which he calls, "among the highest in the industrial world," to 25%, lower than the 28% Mr. Obama has proposed.


Of the 35 companies in the analysis, 16 added jobs both in the U.S. and abroad, while six of them cut both domestic and international jobs.


Seven companies reduced their workforces in the U.S., while expanding them elsewhere. They include International Paper, which has restructured as Americans use less office paper and demand rises overseas.


At the end of 2008, more than two-thirds of its 61,700 employees at the 114-year-old industrial stalwart were in the U.S. Since then, International Paper has closed U.S. mills and bolstered its packaging division through acquisitions in the U.S. and Asia.


Its total workforce—61,500 at the end of last year—hardly changed. But the location of those employees changed a lot, with 8,000 fewer in the U.S. and 8,000 more in other countries. So did International Paper's revenue.


Sales in the U.S. and Europe in 2011 were nearly unchanged from 2008. But revenue from Asia more than doubled over the period to $1.8 billion.

And so forth. While hardly news to most, the reality is that anyone who thinks in economic terms from a practical standpoint (which automatically excludes 100% of Ph.D. economists and 99% of bloggers and armchair econ experts on twitter), the reality is that soaring US public leverage has virtually no incremental return to the US public sector. In fact, as the above chart shows, the returns from additional US debt are roughly 3 to 1 in the benefit of foreign countries compared to the US. But no matter: the Krugmans of the world will keep on prodding anyone who still cares to listen to their ramblings to spend, spend, spend and raise, raise, raise debt as the IRR will ultimately catch up. Well, he is right: for a very specific subset of Americans - those who are shareholders of big multinationals. Unfortunately, the money, once it trickles down to the bottom line, ends up being deposited... just not in the US, but far, far away, preferably in Taiwan, Singapore and HK banks (now that Obama made any American non-grata in Zurich and Geneva) as those same corporate types know very well that the same government which is so generous in giving, will be just as greedy when the time comes to taketh away.

That time is rapidly coming.


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Fri, 04/27/2012 - 12:49 | 2380501 LawsofPhysics
LawsofPhysics's picture

Welcome to the global ponzi.  Don't expect wage growth (and all the other consequences of that) in the U.S. any time soon.

Fri, 04/27/2012 - 12:53 | 2380511 SheepDog-One
SheepDog-One's picture


Fri, 04/27/2012 - 13:18 | 2380586 Sudden Debt
Sudden Debt's picture

Unless you go into politics...

Fri, 04/27/2012 - 13:26 | 2380610 SilverTree
SilverTree's picture

Or prostitution. 

Fri, 04/27/2012 - 13:33 | 2380618 A Nanny Moose
A Nanny Moose's picture

Or Secret Service

Fri, 04/27/2012 - 13:52 | 2380653 Sudden Debt
Sudden Debt's picture

Who fucks who and who pays who he?

Fri, 04/27/2012 - 14:22 | 2380715 Dr. Richard Head
Dr. Richard Head's picture

I have been unknowingly getting ass pounded since my birth....Banksters, can't live with em.

Fri, 04/27/2012 - 13:53 | 2380654 Oh regional Indian
Oh regional Indian's picture

India's economy has gone from 70% agrarian to 17%  agrarian and 53% Service sector in less than 2 decades.

That is dizzying speed for a nation of over a billion. Just calculate how many farmers have committed suicide in debt to Mossanto et. al., how much land has been taken over by IT parks. Power hungry, poorly designed IT "parks", mostly ill-suited western archicture applied to India, like a gash on the land-scape.

Relevance? That is where the source of the giant sucking sound is. And in Free Trade Zones.

And in massive budgets in MArcom to saturate th eIndian (probably Chinese too) markets. Total advertising BLITZ.

I've said it many times before, even GM is doign really well in India. Car's are pretty good too, especially the one's that came via Opel.

Just one big false paradigm of artificial lack.



^^^ me, caveat emptor ;-)


Fri, 04/27/2012 - 15:28 | 2380908 Gully Foyle
Gully Foyle's picture

Oh regional Indian

You understand that India is planned to be the next US economically. TPTB needs to build up your middle class and increase purchasing power.

India benefits by a nice ratio of young to old that doesn't start changing until the next century. Unlike China and the industrial nations.

Welcome to the future.

Fri, 04/27/2012 - 13:58 | 2380667 DoChenRollingBearing
DoChenRollingBearing's picture

@ Sudden Debt

At this point, I as an American would NEVER START a new business here.  Too many regulations and pits to fall into.

If I owned or ran a large company, I would operate it to maximize shareholder profit in an ethical manner.  On behalf of the OWNERS of the business.  Hiring foreigners is just as humane as hiring Americans.  Foreigners are people too.  If they work for lower wages, they likely are POORER than Americans.  They might work harder...  What's wrong with that?

But, the US government certainly does not need to subsidize that behavior.  Our .gov should not subsidize anything!

Fri, 04/27/2012 - 14:27 | 2380729 Sudden Debt
Sudden Debt's picture

Completely true!

Fri, 04/27/2012 - 15:19 | 2380890 LawsofPhysics
LawsofPhysics's picture

Good post, and if your company failed I would expect that you and your shareholders pay back your creditors with your own personal wealth.  No bailouts, period.

Fri, 04/27/2012 - 15:30 | 2380912 DoChenRollingBearing
DoChenRollingBearing's picture

I had three (small) companies that I owned fail.  I did not stiff anyone.  I lost the money fair and square.  No bailouts for me.

Fri, 04/27/2012 - 15:25 | 2380903 Belarusian Bull
Belarusian Bull's picture

You should also note, that American workers just do not the desrve the wages they get.

This is the main reason why jobs are moving from rich countries to poor countries.

Fri, 04/27/2012 - 15:47 | 2380954 KK Tipton
KK Tipton's picture

"But, the US government certainly does not need to subsidize that behavior.  Our .gov should not subsidize anything!"

Not subsidizing...they are *direct* shareholders of said mega corps. Talk about double dipping!
Our US Govt. (fed AND local) *directly* profit from overseas investments.


See here for just a taste:

"Do you know how many trillions of dollars YOUR Local and Federal Government has invested with Mexico, China, the old Soviet block countries? Investments held in foreign currency? Government investments that greatly profit from that cheap labor abroad and a lower dollar.
Investments that profit even more when the dollar drops in value due to foreign currency exchange rates?"

"Could it be that our own Government over the last several decades has been promoting to those fortune 500 companies, of which Government owns most through Bond - Loan investment / stock ownership [EXAMPLES: 82% stock ownership of Microsoft Corporation, Disney 61%, AOL - Time Warner 58%, EXXON 72%] to manufacture abroad so that Government would realize greater returns on their investments at the Peoples of the USA's expense in jobs and wealth retention."

"In the 60's, most government investment funds were restricted to a cap of 5% to a maximum of 10% invested outside of the USA. By 2000, that restriction has been increased in many a case to over 45% and in some cases no restriction at all per percent of International investments held.

Is the big picture coming into view for you yet? I sure hope so! Correction is needed!"

That is right, government is making much, much more than you ever thought. The figures are on this and "their" sites. Look and you will see.
Keep in mind, Government only wants you to see one side of the picture; coin; etc. The DEBT, you will turn your back to the debt in fear or disgust and look the other way.
Then look at how much money they have to hire; buy off; and control; the BEST Marketers; Psychologists; Strategists; Takeover Specialists; Entertainment Propagandists; etc.; etc.; etc;.


Follow the money indeed!



Fri, 04/27/2012 - 16:03 | 2380992 Kassandra
Kassandra's picture

Every day another nightmare. The below needs it's own space.

Sat, 04/28/2012 - 02:37 | 2381828 Zero Debt
Zero Debt's picture

One domestic business you may consider if you want to hire lots of people is selling cancerogenic drinks. Because, which are the two companies adding most job in the US in this chart?

A total of roughly 100,000 jobs have been added by two companies: COKE and PEPSI. What is their product line? The active ingredient in coke is phosphoric acid, which is linked to low bone density, chronic kidney disease and kidney stones, not to mention the sugar and artificial coloring and flavoring such as 4-methylimidazole that causes lung, liver or thyroid cancer, or leukemia in lab mice and rats. Fancy a healthy diet? Try Coke Zero, packing aspartame, acesulfame-K, caffeine, E331 and phenylalanine. Pepsi employs similar ingredients, including phosphoric acid, citric acid, sugar, sweeteners etc.

Cue Michelle Obama appearing on the Banker's Club as a Pepsi Spokesperson in 10, 9, 8 on the campaign trail...


Fri, 04/27/2012 - 15:18 | 2380888 Ripped Chunk
Ripped Chunk's picture

+ 10,000   Indeed sir. The only place where real income (bribe $$) is growing.

Fri, 04/27/2012 - 13:28 | 2380612 goldfish1
goldfish1's picture

It's a national disgrace. The congress should be impeached for treason and the corporations assets taxed at 75%.

Fri, 04/27/2012 - 13:46 | 2380639 tempo
tempo's picture

Jobs are not created in the highest cost most regulated (sue baby sue) nations.  Its just that simple.  To top it all off, the central bankers believe that are doing great good w ZIRP and people would not be able to eat w/o them.  Now Corporations, union, retirees, students want the FED to do more because of fear.  This will go on for years.

Fri, 04/27/2012 - 14:30 | 2380733 Dr. Richard Head
Dr. Richard Head's picture

Want a cherry on top of the cupcake of stiffled job creation?  Have a bureaucracy provide "guidelines" that will punish employers who don't wish to hire convicted felons should those felons happen to be minorities. - EEOC Updated Guidelines (no public comments allowed) release on April 25, 2012

Additionally, use these guidelines to place the burden of proof on the employer that they were not discriminating, even if the candidate never applied to the job because they were concerned their criminal record would preclude them from the job. 

Fri, 04/27/2012 - 14:28 | 2380726 Goner
Goner's picture

As I read the article nothing illegal or even immoral is being done by the corporations. In fact I only see problems with our government. It spends to much and creates hurdles\ expenses to doing business in America. Of course a company is going to put more money into the areas that are actually making them money.

Add a 75% tax and company's move everything overseas and/ or add a 75% tax to every product they sell and pass the cost right back to the consumer. That should solve the problem, right? (/sarc, just so everyone knows)

Fri, 04/27/2012 - 15:50 | 2380849 pkea
pkea's picture

the "LAw" doesn't represent truth or morals, it is rather, in its form it exists in the US, quite often is immoral....the products many TNCs produce are immoral(arms, ICBM support, ICBM controlling satellites), that's the age we live in....

People should consume less, Asia should change their labor laws , the list can go on. The slippery slope of human nature is too easy to take

Fri, 04/27/2012 - 15:03 | 2380858 Diogenes
Diogenes's picture

If a person works overseas they have to pay income tax on the overseas earnings and corporations are supposed to be people.

Fri, 04/27/2012 - 14:46 | 2380785 Dangertime
Dangertime's picture

That should entice growth of business operations in the US.

Fri, 04/27/2012 - 13:02 | 2380541 Clayton Bigsby
Clayton Bigsby's picture

I have an idea to get some job growth right here in the good old U.S. of A - and no, it's not building the death star - it starts with K and rhymes with "eystone Bipeline"...

Fri, 04/27/2012 - 13:06 | 2380552 LawsofPhysics
LawsofPhysics's picture

What does that have to do with wages again?  Fucking nothing, the pipline will be built by an international oil company who will employ hungry engineers from around the world (who actually know how to do math) and will work for less with fewer benefits.  Wake the fuck up.

Fri, 04/27/2012 - 13:17 | 2380581 Sudden Debt
Sudden Debt's picture

But those people will be eating from a hotdog stand operated by a American!

Fri, 04/27/2012 - 13:18 | 2380588 LawsofPhysics
LawsofPhysics's picture

Why?  Did that American turn off the television?

Fri, 04/27/2012 - 13:30 | 2380617 ihedgemyhedges
ihedgemyhedges's picture

Of course not,  He skipped his mortgage payment to buy an iPad, so now he can watch Kardashian reruns all day from his hot dog stand........

Fri, 04/27/2012 - 13:46 | 2380641 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Yeah, it won't be so funny when these foreign countries go belly up and wipe out these multicorps overnight. Or maybe, it would be hilarious!

Fri, 04/27/2012 - 14:15 | 2380701 toady
toady's picture

I would watch that reality show!

Fri, 04/27/2012 - 14:05 | 2380681 earleflorida
earleflorida's picture

the money made in the 'gold rush' was from the selling of shovels, pans, and beans --- plus,plus hookers

the money to be made in fracking gas, will also be made in the necessities of shovels, pipes, and beans --- plus, plus hookers 

Fri, 04/27/2012 - 13:13 | 2380569 jus_lite_reading
jus_lite_reading's picture

Fair enough but all I see is a lot of complaining and protesting (OWS anyone?) about all these evil companies and their corrupt practices yet these same people that talk the big talk and make all the noise are the same ones who buy the latest iPhones, iPads and plasma TV's...

How many REALLY have the "backbone" to buy only when necessary and are as selfsufficient as possible? How many REALLY Reduce, Reuse and Recycle? I would say less than 5%... 


Fri, 04/27/2012 - 13:23 | 2380600 falak pema
falak pema's picture

65% in Germany, nation wide for ALL types of municipal waste, goes to energy or recycle.

Fri, 04/27/2012 - 15:16 | 2380885 Harbanger
Harbanger's picture

He was talking about being frugal.  Not about recycling.

Fri, 04/27/2012 - 16:37 | 2381073 falak pema
falak pema's picture

well before being frugal lets recycle and then be more frugal, that means we don't junk reality of today before preparing for tomorrow. 

Fri, 04/27/2012 - 18:10 | 2381276 jus_lite_reading
jus_lite_reading's picture

The global elite want us to spend and spend and spend some more. That means consuming. They created this throw away society because it means more money in their pockets (why do you think Apple decided on the "less sturdy" glass for their iPhones?) regardless of the impact on the environment. (Don't get me wrong, I'm NOT a tree hugger) They want and NEED us to be CONSUMERS, and truthfully, this is NOT sustainable for the earth or our children. 

Are you in?


Fri, 04/27/2012 - 14:32 | 2380739 toady
toady's picture

It isn't a 100% game. I like to think I'm in you 5%, but my wife still runs on the consumer treadmill occasionally. She has a weakness for clothes, especially shoes. I've managed to redirect her to clothes for our boys. They are pretty rough-n-tumble, so they go through them pretty quick, and the articles that do make it through the grind get passed down to a couple of younger nephews.

I guess I'm saying reduce, reuse, etc, but spend as needed too.

Fri, 04/27/2012 - 18:11 | 2381284 jus_lite_reading
jus_lite_reading's picture

Same here. Even my grown children are always tempted by conmercialism to "NEED" the newest gadget and thing but they see the futility in it all AND the fact that by their CONSUMING they support this corrupt system.

Fri, 04/27/2012 - 12:50 | 2380502 q99x2
q99x2's picture

If the companies are creating jobs overseas and not in the US then they are not US companies and must be forced to pay tarrifs and taxes accordingly.

Fri, 04/27/2012 - 12:51 | 2380504 LawsofPhysics
LawsofPhysics's picture

Unfortunately, these same companies own congress. 

Fri, 04/27/2012 - 16:03 | 2380508 pkea
pkea's picture

The correct term for what these TNCs created in their essence would be totalitarianism.


what we have pretty much everywhere, particuarly in the US ( perhaps excluding only a few scandinavian countries) well described by Herbert Marcuse, in his 1964 book One-Dimensional Man, about a society in which, in his words, "…liberty can be made into a powerful instrument of domination. Free election of masters does not abolish the masters or the slaves

Fri, 04/27/2012 - 13:01 | 2380536 cougar_w
cougar_w's picture

I've been thinking recently that America is now less a nation and more a corporation. And all the registered corporations are just its subsidiaries. If you allow yourself to think of it like that then a lot of really creepy observations begin to make brutal sense.

It is perhaps the ultimate expression and final damnation of the corporatist interpretation of the 14th Amendment; the spirit of the corporate creature became the nation it was once the child of.

I fail to see how such a situation can result in anything short of a full-on Fascist state. That's not even hyperbole, the observation follows from first principles.

Fri, 04/27/2012 - 13:10 | 2380558 GeneMarchbanks
GeneMarchbanks's picture

'I've been thinking recently that America is now less a nation and more a corporation.'

That is entirely correct indeed. You can also make a similar argument for the City of London except in strictly banking form. These are not nations by any stretch of the imagination.

Corporations have taken over and we have allowed it to happen by submitting to the corporate beast.

‘Corporations aren’t citizens or neighbors or parents. They can’t vote or serve in combat. They don’t learn the Pledge of Allegiance. They don’t have souls. They’re revenue machines. I don’t have a problem with that. I think it’s absurd to lay moral or civic obligations on them. Their only obligations are strategic, and while they can get very complex, at root their not civic entities. With corporations, I have no problem with government enforcement of statutes and regulatory policy serving a conscience function. What my problem is is the way it seems that we as individual citizens have adopted a corporate attitude. That our ultimate obligation is to ourselves. That unless it’s illegal or there are direct practical consequences for ourselves, any activity is OK.’ --DF Wallace

Sat, 04/28/2012 - 07:42 | 2381957 Disenchanted
Disenchanted's picture



Dissecting the New Age - The Trinity of Global Empire


Any American who thinks they are living in a free country does not
have a clue.

The fact is that the United States corporation is controlled from the
City of London, by the Crown, which is not the British Monarchy as
many believe, but rather the private corporation that is the inner
'City of London' itself, also commonly known as "The City" or "The
Square Mile." This square mile that makes up the center of Greater
London has its own mayor, laws, courts, flag, police force and
newspaper. It is the heart of the global financial system.

Matthew D. Jarvie

Fri, 04/27/2012 - 15:11 | 2380874 valkyrie99
valkyrie99's picture

Yes, this is pretty close to my views...maybe the US being more of a leveraged buyout victim turned into a subsidiary shell corp. that the parent companies - big multinational players - plan to load with debt and risk that’s  more advantageous to their positions then its' own as they don't really care if the shell company is left standing in the end...

Fri, 04/27/2012 - 15:37 | 2380927 cougar_w
cougar_w's picture


Fri, 04/27/2012 - 16:16 | 2381024 newworldorder
newworldorder's picture

RE: cougar_w

Its not only the US that is being molded in the image of a Corporation. Look at all large multinational companies, regardless of their governance domicile country. They look the same, have the same interests, are governed by the same interlocking elite, use the same banking system and are  by in large ruled by mostly unelected or compromised political entities. International law inforcement comes courtecy of the US Military and they dont have to pay for it.

Fri, 04/27/2012 - 16:03 | 2380976 KK Tipton
KK Tipton's picture

"Unfortunately, these same companies own congress."

Actually, congress owns stock in these companies. Symbiotic relationship.

US fed and local government investments profit heavily when said companies send labor overseas.
They then hide said profits (in plain sight) with a variety of  mechanisims.
All "totally legal" according to the laws they make themselves you know.

This funnels cash upwards to the .001%

See my post above.

Fri, 04/27/2012 - 12:57 | 2380523 CrimsonAvenger
CrimsonAvenger's picture

don't hate the player, hate the game.

Fri, 04/27/2012 - 13:03 | 2380542 Sudden Debt
Sudden Debt's picture

Nothing nationalizations won't fix :)

Fri, 04/27/2012 - 12:50 | 2380503 navy62802
navy62802's picture

Haha. Well, I guess they're not going to Greece or Spain for their new labor pool.

Fri, 04/27/2012 - 12:57 | 2380505 pkea
pkea's picture

It would be all fine if they paid reasonable taxes on their foreign income but we all know that they don't. So whose fault is it that they don't pay taxes at acceptable for their country of origin rate as most multinationals in europe and japan do? Why do germans, french, scandinavians  and japanese MNC pay their taxes and employ their own citizens?

Fri, 04/27/2012 - 14:17 | 2380704 DoChenRollingBearing
DoChenRollingBearing's picture



German company BMW has a plant in the USA.

German company Schaeffler has bearing plants in many countries.

German company Siemens hires (60,000 ?) Americans.

German company Daimler owns the world's largest truck plant (in Brazil).

Swedish company SKF has bearing plants all over the world, including lots in China & India.

Norwegian company Norsk Hydro has a huge gasfield in Qatar.

French oil company Total operates all over the world.

Japanese company Toyota assembles cars in many countries.

Japanese companies like Sony, Toshiba, etc. source MANY electronic parts from China.

Japanese bearing companies NSK and NTN have plants in many countries, including China.


Fri, 04/27/2012 - 14:49 | 2380800 Dangertime
Dangertime's picture

Shhhh, you're making too much sense.  Let the muppets grumble.

Fri, 04/27/2012 - 15:42 | 2380940 valkyrie99
valkyrie99's picture

That's because compaired to doing biz within these high wage countries, the US south is close enough to China wages / regulations.

Fri, 04/27/2012 - 12:52 | 2380506 eatthebanksters
eatthebanksters's picture

If these companies had to pay foreign workers  $60,000 $100,000+ a year and give them retirement bene's at 100% of salary and full medical after 20 or 25 years, the jobs might come home.

Fri, 04/27/2012 - 13:23 | 2380601 lemonobrien
lemonobrien's picture

follow the money... the markets are overseas. the ones growing with less regulation that is.

Fri, 04/27/2012 - 13:34 | 2380620 Whoa Dammit
Whoa Dammit's picture

If these companies had to pay American workers for each job they abamdon here and re-create overseas $60,000 $100,000+ a year and give them retirement bene's at 100% of salary and full medical after 20 or 25 years, the jobs might stay home.

IMO either they can be American companies or they can piss off.

Fri, 04/27/2012 - 12:54 | 2380513 pods
pods's picture

Nice, the largest increase for the US was a maker of HFCS water.


Fri, 04/27/2012 - 12:54 | 2380514 sabra1
sabra1's picture

in Quebec, Canada, students riot over increased tuition fees, while US citizens riot over....................................?

Fri, 04/27/2012 - 13:14 | 2380570 Sudden Debt
Sudden Debt's picture

Give them all a Xbox... Problem fixed.

Fri, 04/27/2012 - 12:54 | 2380516 cougar_w
cougar_w's picture

I think it was Karl Marx who commented that capitalism contained the seeds of its own destruction.

Maybe what he meant to say was crony capitalism. Regardless I seriously don't see how American crony capitalism is going to survive. These stupid fucks (er I mean captains of industry) have ingested enough greedy cyanide to kill capitalism a hundred times over.

Fri, 04/27/2012 - 13:00 | 2380537 GeneMarchbanks
GeneMarchbanks's picture

Marx invokes immediate junking. This should be a telling poll. Some comments are just that, this is one of them.

Fri, 04/27/2012 - 13:04 | 2380546 cougar_w
cougar_w's picture

I understand. This is not the best place for rehashing the lessons of history. Not ZH, and certainly not America.

It means people are left thinking that the current crisis is new, or somehow unforeseen. Which it certainly is not.

Lesson learned? None. Rinse and repeat.

Fri, 04/27/2012 - 13:08 | 2380557 SheepDog-One
SheepDog-One's picture

Hell, no one even learned a lesson from 2009, much less 9 from decades ago. 2009 showed everyone clearly that all bubbles are just made of vapor, and can vanish at any time...yet here are people again saying you got to get right on THIS bubble because surely THIS time its different from the DotCom bubble, or the R/E bubble, or any of the other bubbles. 

Fri, 04/27/2012 - 13:16 | 2380575 Sudden Debt
Sudden Debt's picture

99% of the population needs to think 10 minutes to remember what they had for lunch last week. If they remember it at all....

Fri, 04/27/2012 - 13:09 | 2380560 falak pema
falak pema's picture

lol, the thesis of Marx is that ALL capitalism MORPHS into CRONY structure of Oligopoly and Monopoly natures. That PROFIT can only been made that way as overcapacity is the plague of all capitalist endeavour; aka it has to go monopoly to ensure those who get to the top STAY at the top, and are prepared to kill the market to achieve this.

Current financialised trends give credance to this theory, without giving credance to MArxian solutions. However, Keynes, as one of his sons, has extablished that government regulation can add order to the so called "free market"; when this trend exerts itself either thru "herd exuberance" or "monopoly manipulation". 

ZH does not buy that but this current crisis is making this theory seem respectable, when the Oligarchy structure is prepared to sacrifice "republic and democracy" to cheat their way into staying in power.

Alternative theories advocate junking Democracy as the system of jackasses being manipulated by jackals. We know what dictatorship means throughout history, and how "philosopher-kings" however wise they be, beget Dictators; ALWAYS! 

So what's the answer? Read Plato I guess! Or listen to Winston Churchill. Or Jefferson. Or...

Fri, 04/27/2012 - 16:23 | 2380578 cougar_w
cougar_w's picture

One can do far worse than Churchill or Jefferson.

Just about anytime I read something of Jefferson's I could almost weep.

Dear God. We are become as the lost who with their eyes shut tight against the light cannot find the road, and will not open them, and so fall from the way.

Fri, 04/27/2012 - 14:19 | 2380710 earleflorida
earleflorida's picture

when america's, "capitalist free-market financial system" is boiled-down [condensed?] to a couple of companies [eg. iAAPL] controlling ~70%,... and with a non-elected entity such as the 'FRB' controlling the trading [totalitarianism of money supply] of said free-market -Marx's is spot on, perhaps even bewildered. 


Sat, 04/28/2012 - 02:20 | 2381824 Zero Debt
Zero Debt's picture

Unless interest rates are set by free markets, there is no capitalism.


Fri, 04/27/2012 - 12:54 | 2380518 skepticCarl
skepticCarl's picture

This is why many are buying the S&P 500.  The big U.S. multi-nationals of that index benefit greatly from both tax treatment (claiming profits were made overseas and losses suffered at home) and from lower labor costs.  Go ahead and root for their comeuppance, but don't short 'em.

Fri, 04/27/2012 - 12:56 | 2380519 moskov
moskov's picture

US has been enjoying the lowest price of fuel and inflation. They should be grateful the rest of world has been supporting their lazy asses andolitary agression

Fri, 04/27/2012 - 13:05 | 2380529 SheepDog-One
SheepDog-One's picture

Gee REALLY? Then why is a gallon of gas in Saudi Arabia about .25 cents? Back to HuffPo for you.

Fri, 04/27/2012 - 12:56 | 2380521 williambanzai7
williambanzai7's picture


Fri, 04/27/2012 - 13:05 | 2380549 ebworthen
ebworthen's picture


Fri, 04/27/2012 - 13:18 | 2380585 krispkritter
krispkritter's picture

Nah, can't be...there are no flames...

Fri, 04/27/2012 - 13:39 | 2380627 junkyardjack
Fri, 04/27/2012 - 13:09 | 2380522 SheepDog-One
SheepDog-One's picture

You pay the corporations your taxes, they then go overseas and replace your job. GM, Harley Davidson, just 2 recent examples of the leeches leaving the US to get in the slave trade. GM said 'Hey thanks taxpayer for rescuing us, now go fuck yourselves.' And no one even needs to bring up Apple, but I guess I just did anyway.

Fri, 04/27/2012 - 14:23 | 2380720 cougar_w
cougar_w's picture

Henry Ford (the original) said he paid his workers a good salary so they could afford his product.

Smart guy.

GM management, not so smart. Bailing them out will go down in history as the worst government intervention ever.

Fri, 04/27/2012 - 12:57 | 2380526 buzzsaw99
buzzsaw99's picture

Let them fleece the sheep overseas.Slave wages and slave prices? No thanks.


Frankly my dear, I don't give a damn. [/Rhett]

Fri, 04/27/2012 - 14:39 | 2380761 batterycharged
batterycharged's picture

"let them fleece the sheep overseas"


Uh yer a sheep. I was angry a couple years back when they replaced my team with a bunch of H1Bs. Then they sent my call center job to the Phillipines.

Then I realized most Americans could give a shit at my plight.

Then I realized most Americans think they are unaffected by this and I became happy again. Because now I just will await every other American out as their standard of living goes in the shitter and their job gets outsourced.

At some point every American will realize these companies aren't "American" and that they are lumped in with the global labor pool.

You sir are a sheep, you've just yet to be sheered.

Fri, 04/27/2012 - 12:58 | 2380528 GeneMarchbanks
GeneMarchbanks's picture

'Multinationals' hate that word. They are transnationals as should be painfully clear by now.

Not really surprising actually.

Fri, 04/27/2012 - 13:00 | 2380535 Sudden Debt
Sudden Debt's picture

Uncle sam for the family...

Fri, 04/27/2012 - 13:02 | 2380540 ebworthen
ebworthen's picture

Of course; obligations to pay health insurance, career salary, investment in the individual are so much less for hiring a foreign worker.  The corporatocracy is supported by the politicians and the courts, the U.S. worker by no one but themselves.

Fri, 04/27/2012 - 13:05 | 2380547 Bob Sacamano
Bob Sacamano's picture

"...should return the favor by hiring American workers."

If the government is running massive spending deficits for corporations (as the article states), then the government should stop the massive spending deficits.  Corporations are not in the business of hiring people and when they do hire are not inclined to pay Americans 10x what they can pay others.  The US has priced itself out of the world labor market.  The US is welcome to go isolationist in response, but be prepared for higher consumer prices. 

Fri, 04/27/2012 - 13:11 | 2380566 LawsofPhysics
LawsofPhysics's picture

I agree.  I also think that I will ask for gold in exchange for that next shipment of soybeans to China.  Wake the fuck up, it is a facist world.  The world had better be careful what it wishes for.

Fri, 04/27/2012 - 14:04 | 2380678 Vince Clortho
Vince Clortho's picture

Interesting.  following thru with the analogy, ... let's use ... Apple.

- Apple builds iPads in Worker's Paradise, China 40910, to avoid paying high wages in U.S.

- U.S. slaps Tariffs on imported iPads, doubling the cost

- U.S. market refuses to purchase iPads at outrageous prices

- Apple loses one of the largest consumer markets on the planet

- ??????? [insert next event]


Sat, 04/28/2012 - 09:16 | 2382027 Bob Sacamano
Bob Sacamano's picture

Even with the protectionist US tariffs, becuase the labor is so cheap abroad, it is still cheaper to produce them abroad rather than with high priced US labor.  And US consumers continue to buy them - albeit at higher prices thanks to the government addded cost (helping jobs theoretically by having consumers pay more - great).  And Apple positions themselves in the future largest consumer market on the planet.  That is the follow thru.........

Fri, 04/27/2012 - 14:53 | 2380826 Dangertime
Dangertime's picture

I'm sure companies would love to hire US workers, as soon as they find some who are....


  1. Competent
  2. Hard working
  3. Not in a Jersey-Shore induced stupor
  4. Not asking for unreasonable pay via Union thugs


Seems pretty simple to me.

Fri, 04/27/2012 - 13:06 | 2380551 crzyhun
crzyhun's picture

Oh and then there is the sour AAPL. Since the aformentioned article does not cover the recent period, you have a situation that is much worse. Risque on!!

Fri, 04/27/2012 - 13:15 | 2380573 fuu
fuu's picture

ACN picking up business left and right.

Fri, 04/27/2012 - 13:18 | 2380582 falak pema
falak pema's picture

The Oligarchy is furiously making jobs abroad; now its clear...

Fri, 04/27/2012 - 13:19 | 2380587 Ham-bone
Ham-bone's picture

If I read correctly, 100k of the 113K jobs created in US came from Pepsi and Coke.  13k from the remainder.  Hmmm...looks like soda and beveridges are the new growth industry???

Fri, 04/27/2012 - 13:24 | 2380604 mayhem_korner
mayhem_korner's picture



You can still get a 2-litre bottle of fizzy stuff for 79-99 cents.  It's the only thing folks can afford so it ought to be booming in the U.S.

Fri, 04/27/2012 - 13:19 | 2380590 Kaiser Sousa
Kaiser Sousa's picture

what a great country....


Fri, 04/27/2012 - 13:19 | 2380591 laomei
laomei's picture

In the end it pays for itself.  As the USD continues to lose value in comparison with other currencies, profits, which are expressed in USD get an imaginary bump.  Meanwhile, in the US, it's possible to jack up prices, reduce volume of products and other trickery and claim that sales are up up up, as sales are expressed in dollars and not in physical volume.  It's pretty great stuff to be honest.  Can't wait to see what happens when the bed full of shit can't take anymore.

Fri, 04/27/2012 - 13:20 | 2380592 Clowns on Acid
Clowns on Acid's picture

Of course the multi nationals are focussing on Asia (at the expense of US workers) primarily for a number of reasons:

  • The US consumer is in eye ball debt. The Asians "consumers" are in "surplus". The idae is to give jobs to foreign companies so that the workers can buy multi national products, and eventually get tyhe credit (debt) cards going.
  • Printing by Ben Dover has many unintended consequences. One of those is that (as this article communicates very well) is that US multinationals are flush with free cash. Who cares about debt whe cash is free? 
  • Multinationals will (and should) do whats best for the shareholders. 
  • Cut corporate taxes, cut regulation, watch economy grow and interest rates go up.
  • Oh...wait...higher interest rates screw the Fed's balance sheet....gotta Print!
  • There is no way out....until a bimetallic standard is introduced.


Fri, 04/27/2012 - 13:25 | 2380593 alexwest
alexwest's picture

fix is simple..

fix is simple

average income is less than american...

make it proportional.. 100% difference - 100% tariff.. 5% - 5% tariff..

'other people money'.. banks/brokerages/etc

#3 hike short term fed rate to 5%, and dont do anything for 5 years

#4 balance budget by stopping wars, closing all overseas war bases

thats for kicks..


Fri, 04/27/2012 - 13:47 | 2380644 Metalredneck
Metalredneck's picture

Problem there, is that tariffs LEAD to war, and those with salaries over $1mil generally have a hand in funding or profiteering from war.

Fri, 04/27/2012 - 14:23 | 2380719 bahaar
bahaar's picture

Tariffslead to trade war not real war.  Trade war played only a small part in WWII.  Real reason was back breaking reparations.

Fri, 04/27/2012 - 14:32 | 2380738 LawsofPhysics
LawsofPhysics's picture

precisely, repudiate the bad debt.  Nothing else will fix it.

Fri, 04/27/2012 - 13:22 | 2380596 Chupacabra-322
Chupacabra-322's picture

Of course they are.  GM took the bailout money and hightailed it out of town to China where they plan to build the new Cadillac CTS. 

Fri, 04/27/2012 - 13:24 | 2380605 yogibear
yogibear's picture

US debt created to stimulate the US economy is sent overseas to stimulate China, India and Vietnam.

Some import and residual stimulus is created in the US (import companies).

More and more debt to stimulate other countries. That's why they were booming. The US is stuck with the debt,

Fri, 04/27/2012 - 13:26 | 2380609 mayhem_korner
mayhem_korner's picture



Looks like the abroad-to-U.S. hires is about the same ratio as the earlier debt-to-gdp chart of the day.  It's all just wunnerful stuff these sock puppets produce!

Fri, 04/27/2012 - 13:36 | 2380621 junkyardjack
junkyardjack's picture

Now you see why it is a joke that the retail investors are leaving the stock market. Instead of investing in these companies that are moving jobs overseas so they can see a benefit from it, retail is pulling their money out lol.  At some point reality will strike with them and you'll see a flood of money back into the market and a huge run up.  Its like they don't understand what is happening, their jobs aren't coming back, they will need to find another means.

Fri, 04/27/2012 - 13:43 | 2380633 darteaus
darteaus's picture


Highest corporate taxes in the world


Most anti-business administration in country's history ("crucify")


Continuously changing and increasingly costly regulatory environment (EPA, Obamacare, tax "reform", ?)


Future uncertainty ("I'll have more flexibility after the election")


Broke country (Governments, citizens, pensions, Post Office, etc.)


The US is clearly not the best opportunity for investment currently.


This should be obvious simply based on the fact that corporations currently choose other places build and expand. 

Fri, 04/27/2012 - 14:08 | 2380685 bahaar
bahaar's picture

Highest corporate taxes compare to which country?

This recession started in the previous administration

True a country like China has no regulations.  Factories release untreated effluents directly into the local rivers.  Which is why rich are fleeing the country.

There will be no future uncetainity if we do away elections right?

EM countries will be just as broke if they paid living wage to their youths and pensions / medical care to their old people.  Instead they opt for revolution.  Because that's what awaits them if they don't address the concerns of the have-nots in their countries.  Just look at ME

Try living in other countries before you speak. 

Corporations borrow in the US because of low interest rates.  They build/expand in other countries because they think that's where their future consumers are.  They do this only because they're allowed to.  If the reverse is attempted (Borrow in China/India and invest in the US) they'll get  a kick in their pants.  They're basically exploiting the freedom awarded to them in the US.  They close their eyes to the political risks outside US.  They will lose their shirts if countries where they do business (with such 'positive investment environment') decide to nationalise their industry.  and mark my words.  It's bound to happen.     





Fri, 04/27/2012 - 13:53 | 2380658 Oldwood
Oldwood's picture

It would seem to me that every expense that any company has will automatically be transfered to their customer. I do not understand how we help anything by taxing business more. When you have corporations, that pay billions in taxes, you also give them the incentive to lobby for protection from those same taxes. Many people do not want them to have the right to political speach, when at the same time demand they pay even more in taxes. What happed to taxation without representation? The only way that any business can gain excess profit is if they have a monopoly, otherwise competitors would force their prices lower. I'm tired of people constantly demanding somebody pay more or earn less, when the real problem is government spending and chrony capitalism that creates the monopoly that many companies have. Taxing business is taxing us, the consumer, or pushing the business outside of the competitive reality that contries like China create. If you want jobs here, quit taxing US companies and start taxing foreign ones. It seems obvious to me.

Fri, 04/27/2012 - 14:12 | 2380696 lizzy36
lizzy36's picture

FYI for the past 2 years EFFECTIVE us corporate taxes were half the rate of the last 40 years (around 12.5%).

The reality is US companies are getting plently of tax breaks in THE US to incentivize hiring. So CAT ( a massively profitable US Company) wants to build a factory and re-shore jobs back in the US. CAT will get federal, state and local tax breaks and straight out cash to build that factory and hire workers. It will pay skilled labor (labor that goes to school for 2-4yrs) $25k a year with NO pensions and few benefits (so the US is subsidising the worker bc they are the entity of last resort to pick up shortfalls in pension and other benefits). You know who benefits from this? The CAT C-SUITE who are bonused on profitability of the Company.

Crony Capitalism, and straight out kleptocrats are a big part of the problem. The solution is not, taxing foreign companies.

Fri, 04/27/2012 - 14:35 | 2380746 Oldwood
Oldwood's picture

Regardless, if they could make more money here than oversees, why are they leaving? Is only money. If its not taxes, then why is it? Should we try to create a pro business country or just sit back and bitch. Act like GM, agree to the contracts, spend what ever it costs and then go belly up? The answer can not be taxation.

Fri, 04/27/2012 - 15:51 | 2380962 Whoa Dammit
Whoa Dammit's picture


Yes some corporate taxes are passed through to the consumer. What is overlooked in the Fox News etal. screams about corporate taxes is that high corporate taxes actually incentivize corporate capital investments (here in this country) because the investment can be deducted from taxes. Low corporate taxes are a disincentive to captial investment because of risk/reward.

Fri, 04/27/2012 - 16:12 | 2381015 Oldwood
Oldwood's picture

So I should invest here because i can deduct it from my taxes, or go somewhere else that has no taxes at all? Gee, let me think that one through! More stupid government incentives that distort the markets. I should spend my money where it brings me the best returns, period. The government beating me with a stick in one had and offering me candy with the other, and they wonder why i'm nervous!

Fri, 04/27/2012 - 13:54 | 2380659 SoNH80
SoNH80's picture

It was the same way in late Rome, the place to be a commoner circa 350 was on the periphery, or better yet, in the "barbarian" areas.  The closer you got to the control center, the higher the taxes, the higher the prices, the more oppressive the politics.  Many "barbarians" became rich trading with the Empire, while Roman plebians were crushed under the weight of it all.  Oh, they had free bread and entertainment for the unproductive in the biggest cities, too....

Fri, 04/27/2012 - 14:52 | 2380814 valkyrie99
valkyrie99's picture

Maybe in 350 AD, but that was about the end of the benefit to poor in the outlying areas, to my reserch. At this point the central gov't of Rome was already getting much stricter in clamping down on allowing merchants to trade with the east, insisting only the Roman gov't could benefit from this arbitrage.  The silver coinage that could be minted and was commonly used throughout the countryside had trickled to the east therefore centuries (driven by the different gold/silver ratio) and the gold coins were increasingly concentrated in Constantinople, leaving the countryside’s without a standard means of exchange and often resorting to barter.  Yet taxes still had to be paid in metals and assorted governments emperors would prosecute the rural areas for taxes to different degree.  Villages were also raided for conscripted military fodder.  When men returned, their lands were taken by large landowners, some seizing land by local might and others through gift of Rome, who used to have limits on how much productive land they could own that stopped being enforced.  They began lending to poorer farmers at rates that often assured defaults and repossession of the farm and often the farmer himself; free men became slaves or close to it...economic prosperity didn't return to many of the outlying areas of Rome - say Europe - for nearly a millennia as the feudal system had taken root.  


Now if you are considering ‘barbarian’ the same as the Romans did (anyone that didn’t speak their language – they thought all foreigners sounded like “bar-bar-bar-bar”), you are right – It would have been an excellent time to be a lower class Moslem or even to some level a lower caste person in the Indies valley, or China. But those are areas they became new empires….being poor in the western part of what was Rome became a pretty rough existence, you would have done better being poor in side the walls of Constantinople in the late Byzantine times, even if a good part of your access to food, water, and sanitation was provided by the state…better then not having these things provided for at all as a serf. 


Fri, 04/27/2012 - 17:14 | 2381158 SoNH80
SoNH80's picture

Constantinople powered on for a long time after Rome devolved into an empty shell.  They were right on the water-- it probably made all the difference.  Also farther from the Goths and Vandals... closer to India and Persia

Fri, 04/27/2012 - 13:58 | 2380664 Jack Burton
Jack Burton's picture

The American worker is no longer of value to corporations. They do their work abroad and bring the results back into the USA to sell. Only when no American earns enough to be a corporate customer will the corporation realize that Americans can't buy if they don't earn. The borrow and spend model is now history. US corporations naturally seek the lowest paid and hardest workers, and many of these found abroad now also sport good educations to make them even more attractive workers.

Old Joe Sixpack and his wife are a joke to corporate America. Over paid, under worked and feeling entitled to everything because they wave the red white and blue and send their kids to the Army and Marines. Ha. Ha. The joke is really on them! Corporate America doesn't give a rats ass about Americans, except to use that military to enforce corporate friendly governance across the globe!

Fri, 04/27/2012 - 14:10 | 2380689 Vince Clortho
Vince Clortho's picture

So exactly right on the money. +1

Fri, 04/27/2012 - 14:01 | 2380673 ekm
ekm's picture

Today is one of those days that becomes a clear proof that only Primary Dealers are buying up all the market, since they have no other choice.

Everything is up, every freaking thing is up.

Fri, 04/27/2012 - 16:10 | 2381008 ekm
ekm's picture

BAC only 92 mil shares traded.Wow. Peanuts

That's what happens when only primary dealers are buying. Zero volume.

Fri, 04/27/2012 - 14:09 | 2380686 resurger
resurger's picture

ok are the main stream reading ZERO HEDGE!!!!!!!! Seriously...... you know what, AM SO FUCKING LONG STOCKS NOW OKAY!!!!!!!!!!!!!

This week's market action can be summed up like this: Bad news is good news...don't fight the Fed. More »


Fri, 04/27/2012 - 14:11 | 2380692 ekm
ekm's picture

I am shorting you and I am solvent.

Fri, 04/27/2012 - 14:42 | 2380767 resurger
resurger's picture

Am more short than you are, and more solvent..


Dont fuck with a bear like me


Fri, 04/27/2012 - 15:55 | 2380981 ekm
ekm's picture

Ok, ok. Relax.

I understand.

Fri, 04/27/2012 - 14:17 | 2380706 buzzsaw99
buzzsaw99's picture

I am an usa citizen and I wouldn't hire me. I wouldn't work for myself either. lulz

Fri, 04/27/2012 - 14:21 | 2380714 Bartanist
Bartanist's picture

You betcha ... we are. There is a continuing rush to take money away from new people with money...

... and then there is the labor arrbitrage going on.

Fri, 04/27/2012 - 14:25 | 2380721 vote_libertaria...
vote_libertarian_party's picture

Why are Coke and Pepsi the big blue bars?  Does this include employees when they buy other companies so they aren't really 'new' jobs?

Fri, 04/27/2012 - 14:29 | 2380725 Martel
Martel's picture

Not a very good analysis, because it lumps together shops and factories.

A retailer like Wal Mart can only grow to a certain limit in the U.S. If they're anywhere near a saturation point, it is easier to expand abroad. Therefore, the fact that they hired lots of people abroad is not negative for the U.S. economy, and is not a case of "jobs slipping abroad".

Because of things like that, the WSJ analysis is almost worthless. Wal Mart alone, with their 100,000 new jobs abroad makes things look bad, while for the Americans Wal Mart conquering new markets is a positive thing.

Wal Mart would probably make a killing in expensive countries like Norway or Finland. But for that, they would need to hire more of those damn foreigners in those damn foreign countries.

Fri, 04/27/2012 - 14:31 | 2380736 roadhazard
roadhazard's picture

Corporate tax rate is a fairy tale. GM for example pays nothing. Oh the poor corporations.

Fri, 04/27/2012 - 14:45 | 2380781 Oldwood
Oldwood's picture

But its not just about corporations, its about anyone who is on the take from the US government! Most corporations pay the full tax tab, its just those who got the deal htrough government favors that come out sweet, and what really sucks is that many of them are not even primarily employers of Americans! How much of GM's revenues and profits come from outside the US?

Fri, 04/27/2012 - 14:47 | 2380786 buzzsaw99
buzzsaw99's picture

Corporations don't pay taxes they collect them.

Fri, 04/27/2012 - 14:46 | 2380784 MFL8240
MFL8240's picture

Why would any company invest in a country run by Barack Hussien Obama?  

Fri, 04/27/2012 - 14:53 | 2380825 buzzsaw99
buzzsaw99's picture

Why would BHO bail out any company?

Fri, 04/27/2012 - 14:57 | 2380837 Dangertime
Dangertime's picture

To appease the auto union voting, I mean to "Save America!". 

Fri, 04/27/2012 - 15:00 | 2380850 buzzsaw99
buzzsaw99's picture

MIC = All tax money all the time

Banks = Scam of the century


MFL thinks companies invest? HA! It is all the fascist gubbermint all the time. Companies don't give anything, they only take.


Fri, 04/27/2012 - 14:54 | 2380828 The Ram
The Ram's picture

Great Article. I work as a contractor on a Federal Contract in Arlington, VA.  Pretty much 80% of the contract is Asian...mostly Indians (the ones who like curry).  There lots of non-US citizens and many on Visas.  So I am thinking, with all the US citizens out of work, and I know US schools graduate lots of computer science majors and other technical degrees every year, why am I a foreigner in my own country!  People speak Hindi around me all day!  WTF.  Seems like we have lots of Federal money to recruit half of India to work here in the USA but people born and raised in America need massive unemployment benefits!

Fri, 04/27/2012 - 15:03 | 2380860 loveyajimbo
loveyajimbo's picture

We need a Prez with a big enough sack to turn all that around... and bitch-slap the unions if they are an impediment...  Will we ever get one?    Not soon.  BO is a dope and Mitt will be in the pockets of the elites, like Dumb-ya was...

Fri, 04/27/2012 - 15:57 | 2380984 rapier
rapier's picture

'American Multi National' is a nonsensical phrase.  Best to remove American.  Corporations are only attached to nations by accident of birth.  While they may be people in the eyes of the law they are not citizens and have no loyalty to the nation. Their only loyalty is to making money. Nations have nothing to do wiith it. Now that doesn't preclude them sounding ultra patriotic but why should you believe in such spin.

Corporations are becoming ever more sovergn and the mulit nationals trancend governmetns and natioins.  


It is the aim of America to be the nominal home of the greatest corporations and the government will be loayl to them, not the other way around.  Which is how America will become the defacto home of corporations as the laws are fashioned for them and applied or not applied to them or for them depending upon what is best for them.  You can love this or hate it but there isn't a thing you can do about it. 


Few know that all Americas first settlements were corporations, antiquated in form as they may have been. The perfection of the corporation and the company man is Americas greatest historical legacy.  The last 100 years of American acendency prove the power of the corporate model and with the crisis of 08 the next phase has officially begun.  Be a compnay man, an organization man or be an individual, a citizen, a nobody.

Fri, 04/27/2012 - 20:39 | 2381494 Bobbyrib
Bobbyrib's picture

Our Supreme Court says they're citizens, they're citizens. /sarcasm.

Sun, 04/29/2012 - 05:53 | 2383340 AurorusBorealus
AurorusBorealus's picture

Corporations will not be sending divisions into the field to protect "their" Asian assets from the Chinese Red Army, should China decide to "nationalize" some assets. 

Fri, 04/27/2012 - 16:05 | 2380997 evolutionx
evolutionx's picture
ECB accepts Portugal Bonds due Dec. 31, 9999

No joke: the European Central Bank accepts a Portuguese bond from the year 1943 as collateral due for repayment on Dec. 31, 9999. The ECB has turned into the dumping ground for European banks' junk bonds. The practice could harm the central bank's reputation as well as the Euro. The ECB issues Euros for almost everything.

Fri, 04/27/2012 - 16:33 | 2381064 Shizzmoney
Shizzmoney's picture

As Rome burns, the plutocrats and celebrities celebrate and fawnover each other in a pure form of "cocksuckery".

Brilliant piece by Hamilton Nolan of Gawker today on the WH Press Dinner

Fri, 04/27/2012 - 16:49 | 2381105 JR
JR's picture

Q: What is the primary difference between an American-based multinational corporation and a foreign-based multinational corporation?

A: The American-based multinational corporation has the protection of a superpower military, an aggressive and highly funded state department sales force, a banker-backed Fed-centered international economic force to pressure foreign governments to allow the U.S. company to exploit foreign resources, a government-backed influx of low-cost foreign labor, a government-backed program of tax protection havens for foreign activities, and ….most of all, an unlimited supply of printed reserve currency bailout funds and open access via taxation and inflation to the reserves of the wealthiest middle-class population (for now) on the planet for the Fed-favored.

According to the Center on Budget and Policy Priorities on February 14, 2012: “Corporate tax revenues are now at historical lows as a share of the economy, at a time when the nation faces deficits and debt that are expected to grow to unsustainable levels. Although the top statutory corporate tax rate is high, the average tax rate — that is, the share of profits that companies actually pay in taxes — is substantially lower because of the tax code's many preferences (deductions, credits and other write-offs that corporations can take to reduce their taxes)...

  • During the 1950s, federal corporate tax revenue averaged 4.7 percent of the gross domestic product (GDP). But by the most recent decade (2000-2009), corporate taxes had fallen to just 1.9 percent of GDP . As a result of this trend and other policy changes, the corporate tax now contributes considerably less to federal revenues than it once did: between 2000 and 2009, 10.7 percent of federal revenues were collected through the corporate tax, down from 29.8 percent of revenues in the 1950s.
  • In recent decades, and especially since the start of the 1980s, corporate profits have increased as a share of GDP — but corporate tax revenues have not followed suit. The non-partisan Congressional Research Service (CRS) recently summarized the upshot of this trend: "Despite concerns expressed about the size of the corporate tax rate, current corporate taxes are extremely low by historical standards, whether measured as a share of output [i.e., GDP] or based on the effective tax rate on income."

Average Corporate Tax Rate (2000-2005):

Australia—30.5%; UK—27.7%; France—20.0%; Portugal—17.2%; Belgium—17.1%; Spain—16.7%; Japan—16.4%; Finland—16.2%; Czech Republic—15.7%;  Denmark—15.0%; Greece—15.0%; Canada—14.5%; Switzerland—14.4%; Korea—14.3%; United States—13.4%; Slovak Republic—11.5%;  Poland—11.3%; Austria—11.2%; Germany 7.2%. (Source Treasury Department [2007} – Center on Budget and Policy Priorities

Fri, 04/27/2012 - 17:52 | 2381227 Oldwood
Oldwood's picture

So we are losing American jobs why? Given that we have a negative trade balance, taxing domestic manufactures helps that how? Do you really think our problem is that we don't tax business or the rich enough? Have you looked at the numbers? There isn't enough money on the planet to satisfy our government's needs. Are you are looking to fix things or just find your version of economic justice? If Corporations sell it here, we are paying the taxes. If corporations are making huge profits, it can only be if they have a monopoly or other means of eliminating competition. THAT is where the government comes in and That is why GM and GE and others pay no tax, yet Exxon Mobil payed in tens of billions. Your data indicates average taxes but we know that most pay the full and highest tax while select few that can leverage their connections to government to pay none at all. Just like waivers from Obamacare. Its who you know that makes the difference in this world.

Fri, 04/27/2012 - 20:24 | 2381464 JR
JR's picture

I’m saying that so-called “free trade” has only benefited the Leviathan multinationals/international bankers and has cause a shift in U.S. white male employment from high-wage manufacturing jobs to low-wage retailing jobs, from goods-producing jobs to service-sector jobs.

I see no reason why the system that Adam Smith and others perfected that built the American Dream should be turned upon its head by the perpetrators of hostile mergers and acquisitions in the 1980s onward who bought out the Congress in order to ship their capital and  American technology to low—wage countries while taxpayers and the U.S. military subsidize their production.  This is not comparative advantage; it's piracy.

Ask yourself. How could "free trade" result in a high-tech First World country having an advanced technology goods deficit with a Third World country?

Paul Craig Roberts has the answer.  It’s in a 1999 U.S. Department of Commerce report: "Technology transfer is both mandated in Chinese regulations or industrial policies (with which U.S. companies wishing to invest in China must comply) and used as a deal-maker or sweetener by U.S. firms seeking joint venture contracts in China.”

Said Craig Roberts: “The Commerce report looked at three industry sectors: automotive, aerospace and consumer electronics. Findings in each sector were the same. Establishment of technology development centers is the key to gaining permission to locate plants in China.” These so-called multinationals sold out America to profit themselves.

The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001. With the massive, corporate-driven influx of poor immigrants from the Third World coupled with the outflow of its advanced  technology,  the U.S. Congress has sold out the country to international bankers,  transforming the United Stated from  a superpower into a  future colony of world socialism.

It’s time the American people took back their country and representative government from the international bankers and taxed and regulated these world players in the best interests of America and her people.

Fri, 04/27/2012 - 20:56 | 2381515 zippy_uk
zippy_uk's picture

Spot on article. Two absolutely key items for turning around all of the Western economies are (in this order) are:

1. A new "deal" between companies and countries, given that in the West companies expect to sell goods funded by foriegn financed debt to Western markets, yet expect to be able to move profits off shore and the productive jobs with them while seeking Government protection for debts incurred by consumers. What ever the cost of labour is in China or where ever we don't have to accept this. We could for instance remove all taxes on companies to produce in the West, but instead charge a license fee to access markets (based on sales for instance). Produce + export - NO TAX, Produce and sell locally - make a sale, pay a fee, import and sell locally lose profits. Make the fees for market access applicable to domestic and foriegn companies to get around WTO rules. Key idea is to stop companies getting out of their dues in terms of tax and jobs by changing the rules.

2. Reform the taxes to weigh in on consumption and drop income taxes and taxes on savings plus reform the tax code to simplify to flat taxes. I don't buy the "this kills demand" theory as right now there is no demand because there is no money for consumers.

More generally - smaller government as big government racks up big debts and delivers monopoly profits to corporations. I think the government slice of the economy should be no more than 20-25% tops. In the UK its 49% so no wonder there is no growth.

Finally we need to educate our ideological boomer leaders. I was astonished by the ignorance of Polly Tonybee on BBCs question time who dogmatically went on and on about more government borrowing as the answer, and that the UK government was actually cutting budgets. Nigel Farage had to repeately correct (or attempt to correct) that no - budgets are not being cut, mearly the rate of increase was being cut to cut the rate of additional debt the UK was taking on. So that to my understanding is actually a mild fiscal STIMULUS, all be it a declining one (hopefully) over time.

Astonishing that someone who is a Broadsheet national newspaper journalist (so called) could be so financially ignorant and how typical of her generation, particually on the "progressive" side of the debate not to understand the facts, or the logic (what ever ones viewpoint) of what she is saying.

Sat, 04/28/2012 - 00:57 | 2381768 JR
JR's picture

Good argument,

If there had been no former restraints on monopoly in America, the passing years would have seen the Standard Oil Company move into ownership of every industry and every piece of private property in the United States.

John D’s idea was to own all the means of production, from crude oil to refined gasoline to the dispensing of gasoline at the pump – and all the transportation in between. That’s capitalism, but capitalism isn’t owning public officials. He owned congressmen and he owned state legislators. And if they didn’t acquiesce to what he wanted, he punished them; and then he colluded with others to starve his competition out, using government as a weapon.


Sat, 04/28/2012 - 04:52 | 2381885 zippy_uk
zippy_uk's picture

Further to this - big banks and corporations "have skin in the game" of Government debt by being net benefactors. It is then all too easy for them to turn around to the political lackies and say - well cost of workers in the west is too high, they are unskilled / lazy etc. Of course none of this is mentioned when you or I make purchases of goods and services at point of sale..

If the West co-ordinates these sorts of policies between ourselves, it will boost free trade by having fair trade. Its sort of like the prisoners dillema game with mutual co-operation providing the most winnings unless people don't co-operate. Then if you dupe your fellow contestant with a sneaky move you win the most, but if you both try the same move you both get the least. When researching the best tatics for this game, the consistent winner by a country mile was "open withh co-operations, then to tit for tat the pevious constestants move". So if two constestants have the same tatics they score maximum, but if you play with one who is cynical they get the least and you minimise your loss.

I see global trade like this and having looked at all debates I am convinced that a) Governments have no idea what they are doing, or should be doing, or how to do it, or all of the above.

b) The people who vote for these govenments know even less. The level financial and economic understanding, even amongst leaders is astonishingly low and it is every enlightend persons duty (what ever your view point) to get this changed by what ever means as much as possible. The "Matrix" had the analogy correct - most people are plugged into a virtual world of false consumption while their physical reality is that they are being farmed economically a debt slaves.

Sat, 05/05/2012 - 03:43 | 2399028 wandybrad
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