Tag Archives: Jobs

Why do corporations ship jobs overseas? What causes outsourcing of jobs?

World Corporate Tax Rates
World Corporate Tax Rates

Here is a news story from Yahoo News that explains the problem and the cause of the problem. (H/T Dad)

Excerpt:

Large U.S. companies boosted their offshore earnings by 15 percent last year to a record $1.9 trillion, avoiding hefty tax bills by keeping the profits abroad, according to a new report.

The overseas earnings stockpile has climbed by 70 percent over the past five years, said research firm Audit Analytics. Data in its report covers the Russell 3000 index of the largest U.S. corporations.

U.S.-based multinationals do not have to pay U.S. corporate income tax on foreign earnings as long as the earnings do not enter the United States. Accounting rules also let the companies avoid recognizing a tax expense if management intends to keep the earnings indefinitely reinvested overseas.

“It would probably be nice to have this money in our country being used in our economy, but at the moment we see it growing elsewhere,” said Don Whalen, general counsel and director of research at Audit Analytics.

Conglomerate General Electric Co (GE.N), had the most indefinitely reinvested overseas earnings, at about $108 billion, while drugmaker Pfizer Inc (PFE.N) was next with $73 billion, according to Audit Analytics.

The simple answer is that Americans believe that corporations need to pay high taxes and operate under burdensome regulations. This eats into their profits, making it harder for them to grow and expand. The plain truth is that it is easier for corporations to expand and hire in countries with lower taxes and fewer regulations. Besides, who wants to be wiped out by a nuisance lawsuit just because someone spills coffee on themselves and then refuses to take responsibility? The smart play is to just opt out completely, and that’s what many corporations do – earning higher profits in more business-friendly countries.

Ryan T. Anderson’s commencement speech at Regent University

The full text is up at National Review. I wanted to highlight a couple of points.

First, the importance of marriage and family for raising children:

As a graduate of Regent University you know that the obligations we have to our neighbors are not dependent on race, or sex, or social class. Neither are those duties dependent on age, or size, or stage of development. Or whether someone is wanted or unwanted, planned or unplanned, healthy or sick, “perfect” or disabled.

This starts with you and me. We need to love our children. Graduating class, if you have a daughter with Down syndrome, love her. If your son is conceived “by accident,” love him. As my late mentor Fr. Richard John Neuhaus explained, we have the responsibility to see to it that every human being is protected in law and cared for in life.

The best care comes from the family. Some of you may have already started your families. Most of you will start one in the next decade. And as you welcome children into this world you will experience firsthand that the best way to ensure that children are cared for in life by the man and the woman who gave them life is to unite that man and woman as husband and wife in marriage.

We are created male and female. And marriage unites a man and a woman permanently and exclusively as husband and wife to take responsibility for their children as father and mother. That’s what marriage is all about. And our marriage policy should respect these truths. So, too, should our churches and our own lives. Graduating class: Live lives of fidelity and service to your spouse and your children.

Your children will be educated in this society. And as mothers and fathers you have the responsibility to care for and educate your children. Government should empower you to fulfill those duties. It shouldn’t interfere or indoctrinate. Nor should it use healthcare laws or anti-bullying programs to promote a sexual ideology at odds with the values that responsible parents try to instill in their children.

Second, the free market and the need for job creation:

Our responsibilities extend beyond our families. One of the best ways to care for our neighbors is by serving them in our professional callings, performing quality work at a fair price. Creating wealth and value for our neighbors. Who among the Class of 2013 will be the next David Green, the founder of Hobby Lobby? Who will be the next Truett Cathy, the founder of Chick-fil-a? Who will improve our lives with new technology or medical devices? Who will create new jobs that pay decent wages? This is your responsibility as future business leaders and entrepreneurs.

We know that the market economy—along with families headed by married couples—has done more to lift people out of poverty and into a flourishing life than any other institution. But it only works if people of good character and upright morals are at the helm. Markets are inert apart from the values that actors bring to them—and you have responsibility for your market action.

Look at leaders like David Green and Truett Cathy. They run their businesses in accordance with their Christian beliefs. There’s a simple reason why: They know that they have duties to serve God—and not just on Sundays, but also on the other six days of the week, when they enter the workforce and marketplace. Remember, you can’t check your faith or morals at the door.

It’s worth a look. The actual speech can be seen here, starting at 41 minutes in.  It goes on for about 19 minutes.

9.5 million people have left the workforce under Obama

BLS Labor Force Participation April 2013
BLS Labor Force Participation April 2013

CNS News explains the real state of the work force in America.

Excerpt:

9.5 million Americans have left the workforce during the presidency of Barack Obama, according to the Bureau of Labor Statistics.

In April, the total number of Americans counted as “not in the labor force” declined for the first time since December, but that number was still near a record high at 89,936,000.  

Those not in the labor force declined by 31,000, from a record high of 89,967,000 in March.  That broke the recent record of 89,304,000 not in the labor force in February of this year.

Since February 2009, the first full month of Obama’s presidency, 9,549,000 people have left the labor force.  There were 80,387,000 Americans not working that month, compared with 89,936,000 not working or looking today, according to the latest economic release from BLS.

The Bureau of Labor Statistics (BLS) labels people who are unemployed and no longer looking for work as “not in the labor force,”and that includes people who have retired on schedule, taken early retirement, or simply given up looking for work.

In the 50 months since Obama has been in office, the number of people counted as not in the labor force has declined 16 times.

Remember that during that period, we have been adding more people through birth and immigration, and running up our national debt by over SIX TRILLION dollars since Obama took office (total debt is now $17 trillion). When you spend that much money, you should be seeing MORE people employed. And you would be seeing that, if it’s being spent on private sector job creation. But it’s not. It’s being wasted. And the very people who voted for Obama – the young people – are the ones who will have to pay it all back. Without jobs! Is collecting money from government welfare a long-term solution to repaying the debt? That’s what we are doing now – putting millions of people on disability and welfare. Is that going to help them to pay back all of Obama’s borrowing later?

Related posts