Tag Archives: Capitalism

What causes rich Democrats to lay off Americans and ship jobs overseas?

First off, I spotted this American Spectator story by Robert Stacy McCain on The Other McCain.

Excerpt:

California Democrat Rep. Jane Harman’s family business is laying off American workers – including engineering employees in California – and shifting jobs overseas.

A letter from the human resources director of one Harman company, obtained exclusively by The American Spectator, describes a “permanent” layoff of dozens of California workers that went into effect last week.

[…]Harman is the third-richest member of Congress, and her net worth increased last year $40 million, according to a study of Federal Election Commission records conducted by The Hill newspaper. Her husband, Sidney Harman, founded Harman International Industries, which was valued in 2007 at about $8 billion.

[…]By May 2009, the company had already slashed its U.S. workforce by 900 and expected to make more than a thousand more layoffs by mid-2010, according to a Saturday Evening Post article that noted: “[W]hile shutting down U.S. facilities, Harman was simultaneously opening factories in China and India, as well as massive multimedia outlets in Dubai and New Delhi.”

She’s a rich Democrat… and she is shipping American jobs overseas? Why???

Well, California is an anti-business state and it’s run by socialist Democrats who hate businesses and capitalism. (H/T ECM)

But what about other countries? Why do they ship jobs overseas?

Look what is happening in New Zealand with the new Hobbit movie. (H/T Anon)

Excerpt:

At least half a dozen countries, including Australia, are lobbying to win the right to film The Hobbit and Hollywood accountants are now doing the numbers of rival offers, the movie’s co-producer and co-writer Phillipa Boyens says.

The $US150 million Sir Peter Jackson blockbuster has been mired in an industrial dispute in recent weeks, following complaints from a group of international labour unions over poor on-set working conditions for actors.

Jackson, who strenuously denies the claims, has accused the Australian-based Media Entertainment and Arts Alliance of bullying to gain control over the production, which he says may be forced out of New Zealand.

Boyens told New Zealand’s National Radio’s Nine to Noon programme the movie was ready to begin filming in January but has now been thrown in turmoil by the actors’ boycott.

She said New Zealand Actors’ Equity seemed to believe the whole thing was a bluff.

“I am concerned over some of the statements made… by New Zealand Equity that there is still a misunderstanding on the seriousness of what is involved here and what is at stake,” she said.

“That is very real and that has put at risk the livelihood of countless thousand New Zealand industry workers,” she said.

Scotland, Ireland, Canada and Eastern European countries had entered the negotiations in a “feeding frenzy” inspired by the threat of union action.

And it’s not just left-wing anti-capitalist governments and unions that cause outsourcing and shipping jobs overseas.

It’s the uncertainty caused by massive spending, constant interventions, anti-business regulations, the appointment of radical anti-capitalists and judicial activists to positions of power.

Here’s a story from Reuters.

Excerpt:

Tough budget measures to keep its international bailout on track have helped prompt thousands of Romanian companies to relocate to neighboring Bulgaria, where lower taxes and more stable regulations offer an easier place to do business.

Bulgaria has corporate and income tax on profits of just 10 percent, compared with Romania’s 16 percent, and now also has lower value added tax after Bucharest hiked its rate as part of efforts to meet the conditions of a 20 billion euro EU/IMF bailout.

Sofia has also cut red tape and initial capital for setting up a company is now 2 levs ($1.39), compared with a previous 5,000 levs and 200 lei ($63.55) in Romania. It takes less than a week, almost half the time needed in Romania.

That may seem like small beer, but business people say the speed of the changes forced by the bailout and uncertainty over future cuts in Romania have encouraged them to move base.

Bulgarian authorities have not released precise data, but local media report up to 2,500 Romanian companies have set up there already and another two are registering daily in the border city of Ruse alone.

“Romanian legislation and taxation are changing from one day to another. So how can I have any guarantee, any certainty if I open a company here?” said 23-year-old Bogdan Popescu from Bucharest, who wants to open an online television business.

“I could as well wake up with a 40 percent income tax tomorrow (instead of 16 at present),” said Popescu, who plans to put his headquarters in Bulgaria. “The present fiscal legislation is in no way a stimulus.”

The two Balkan countries share a long border and though links can be complicated — only one bridge connects the states along a 470 kilometer (294 miles) stretch of the Danube — companies can set up a paper headquarters but still effectively run operations from Romania.

Both suffered deep and painful recession after 2008’s financial crisis, but while Romania is having to cut spending and raise taxes, Bulgaria previously ran large fiscal surpluses and has enough reserves to keep taxes low despite dwindling revenues.

Whenever government and their union supporters make life difficult for businesses, the businesses leave. Governments and unions ship jobs overseas. Governments and unions outsource jobs to other countries. Businesses just dance the the tune that governments and unions play. It’s no use complaining about big corporations and rich greedy executives. If you want a job then you promote the conditions that will attract businesses. Left-wing unions, left-wing political parties, left-wing news media and left-wing judges attack businesses, and that’s why unemployment goes higher.

And businesses know that massive government spending is going to require higher taxes or printing more money to that will devalue savings. They are not going to expand in banana republic economies like the United States until we vote a large enough number of Democrats out of all three branches of the federal government.

What I resent is when rich Democrats create the legal conditions that require companies to outsource and then complaining about outsourcing while engaging in outsourcing themselves. That’s hypocrisy.

John Stossel documentary on public school costs and performance

I found this documentary on the Prof Blog.

I recommend that you watch Clip 4, then Clip 5, then Clip 6.

Part 1:

Guest Ben Chavis: (who runs a charter school)

  • Ben explains how bad schools teach self esteem and victimology
  • Ben explains how good schools teach knowledge
  • Ben took the worst school in Oakland and made it the best
  • Ben talks about the importance of firing bad teachers
  • Ben talks about the importance of discipline
  • Ben explains how students that miss school have to come on Saturday
  • Ben explains how his school gets the least of money
  • Ben explains how class sizes and teach certifications don’t matter
  • Ben says that public schools don’t need more money to perform

Guest Andrew Coulson: (Cato Institute)

  • public schools spend 4 times more per pupil (K through 12) than in 1974
  • but the reading success rate has stayed the same

Part 2:

Guest Ron Packard: (K12 online school)

  • using a public school curriculum delivered online
  • 70,000 students are learning online at their own pace
  • they have more poorer students and yet score higher than average
  • flexible schedules allows more time for sports and activities
  • the unions attacked the online schools even though they are better
  • the politicians listen to the unions and limited the number of students

Part 3:

Guest Janine Turner: (Founder of “Constituting America”)

  • children need to learn about the founding documents of the USA
  • children need to understand what America unique
  • children need to understand the notion of limited government
  • the founding documents are basic to understanding everything else

Guest Colin Hanna: (Founder of “Let Freedom Ring”)

  • the Constution is very important for people to read out loud
  • it’s also good to read it with others

Part 4: (A debate! Between Michelle Rhee and some lazy union thug!)

Guest Michelle Rhee: (Superintendent of Washington, D.C. schools)

  • public school tenure means having a job life regardless of performance
  • you can judge how teachers are performing look at test score improvement
  • you can’t look at teacher performance reviews they are always good
  • you have to look at the test score improvement year over year
  • it is almost impossible to get a teacher fired even if they are awful
  • Rhee fired lots of administrative people and costs went down
  • scores went up, and now DC is no longer the worst school system
  • more money doesn’t make students learn better
  • DC used to spend the MOST money, and had the WORST performance
  • the key to improvement is holding people accountable to perform

Guest Noah Gotbaum: (NYC Local School Board President/son of a union boss)

  • teachers aren’t to blame! most of them are excellent!
  • firing bad teachers is a bad idea! that won’t solve anything!
  • the DC schools haven’t improved! test scores don’t measure improvement!
  • we need more money! money will solve everything! it’s for the children!
  • you’re scaring the poor teachers when you talk about firing them!
  • Michelle Rhee is evil! Evil! She’s a witch! Burn her! Burn her!
  • those gains in test scores are not real! You can’t measure results!
  • test scores going up doesn’t mean that the students are doing better
  • the causes are more complicated and systemic but give us more money!

(I snarkified everything the union guy said – he didn’t really say that stuff like that)

Part 5: (Q&A)

  • Question for Noah: How much money is enough?Noah: well, other schools spend lots of money!
  • Question for Ben: Where does more money go?Ben: its impossible to tell how much is spent on administration vs teachers
  • Question for Noah: What about a voucher system?Noah: no! don’t let parents choose! that would deprive bad teachers of lifetime jobs!Noah: vouchers aren’t enough to cover a private school education!

    Ben: top private schools cost 10,000 a year less than half of NYC public schools

  • Question for Andrew: Is there any legislation to provide vouchers?Andrew: yes there is legislation to create voucher projects
  • Question for Ben: Are you cherry-picking the best students?Ben: every kid who applies is accepted there is no cherry pickingBen: we have more poor students than the average school

(I snarkified everything the union guy said – he didn’t really say that stuff like that)

Part 6:

John Stossel:

  • Americans spend way way more than other countries and we score much lower
  • teacher unions are still complaining for more money
  • teachers average 50,000 in salary a year for 9 months of work
  • teachers make way more than chemists, computer programmers and nurses
  • and school administrators waste tons of money on school
  • we spend four times as much per pupil since 1974
  • the real problem is lack of competition
  • the public school system is a government monopoly
  • monopolies are bad for consumers: less competition = high cost and low value
  • monopolies create worthless junk that no one wants
  • competition makes service/product providers accountable

Awesome! Down with government monopolies! The segment on online schools gives me hope – maybe there is a way to turn the young people away from secularism (= moral relativism) and socialism. This is another sign that there may be a way to turn this thing around if we can just get the government out of the education business and let parents choose schools that produce marketable skills. How did we ever let these union thugs produce worst test scores that poor countries with a billion times more money spent? Is this the United States of America? These unions are UNAMERICAN. They should be outlawed. First the public sector unions, then any private sector union that influences politics.

More John Stossel stuff

John Stossel documentary on entrepreneurs in America

Here’s the intro video. (H/T The Blog Prof)

And the remaining parts:

  • Part 2: The commuter vans entrepreneur debates against the head of the transport union
  • Part 3: How government regulates and sues entrepreneurs who want to start and run businesses
  • Part 4: How governments and big businesses force entrepreneurs to get licenses they don’t need
  • Part 5: How governments pass regulations to insulate lobbying businesses from competition
  • Part 6: Q&A with some of the guests
  • Part 7: Stossel’s conclusion

This documentary explains how government regulations get in the way of people who have great ideas.

The best clips were 3 and 6.

More John Stossel stuff