Tag Archives: Socialism

News

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

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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.

News

Was Obama lying to you about keeping your health care plan?

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Consider this article in the Wall Street Journal.

Excerpt:

Among President Obama’s core health-care promises was that Americans can keep their current coverage if they like it. Among the reasons that a new ObamaCare squall blows in every other day is that this claim simply is not true, as people are discovering.

The latest fracas was incited by Janet Adamy’s scoop in the Journal this week that McDonald’s Corp. may be forced to cancel its current coverage for 29,500 employees as a result of ObamaCare. McDonald’s told Health and Human Services regulators that new mandates will make its plans “economically prohibitive” and cause “a huge disruption” unless it gets a waiver.

[…]At issue in the McDonald’s dust-up is a type of low-cost, low-benefit insurance known as “mini-med.” These plans cover most medical services but generally have an annual deductible or benefit cap between $1,000 and $10,000. Unlike more comprehensive plans, there’s no catastrophic coverage. Essentially, the very low premiums—under $100 a month—amount to prepaying for routine expenses like office checkups and E.R. visits.

Around 2.5 million consumers are covered by “mini-med” policies, most of them concentrated in low-wage industries like fast food, hospitality and retail that have large numbers of part-time or temporary workers. In the case of the restaurants, 75% of the workforce turns over every year and nearly half are under age 25. Mini-med plans are a temporary stopgap for businesses that have low margins and face high labor and health costs.

But Democrats hate mini-med and other skinny-benefit plans, calling them “underinsurance.” ObamaCare is meant to run them out of the market by mandating benefits, eliminating coverage caps and certain technical rules about how premiums must be spent. This despite the fact that Arkansas, Connecticut and Tennessee sponsor their own mini-med plans for state residents as better than having no insurance at all.

In other words, the choice is between relatively affordable coverage that isn’t as generous as Democrats think it should be and dumping coverage entirely. McDonald’s may eventually offer the high-cost plans that Ms. Sebelius favors, or get its waiver, but many of its less profitable or smaller competitors won’t. While subsidized ObamaCare options will be available in 2014, those costs will merely be transferred to taxpayers.

Radical pro-abortion extremist Kathleen Sebelius is in the news lately, intimidating private businesses for refusing to make bricks without straw.

Michelle Malkin wrote about it.

Excerpt:

In February, the White House coordinated a demonization campaign against Anthem Blue Cross in California for raising rates. Obama singled out the company in a “60 Minutes” interview, and Sebelius sent a nasty-gram demanding that Anthem “justify” its rate hikes to the federal government. A private company trying to survive in the marketplace was forced to “explain” itself to federal bureaucrats and career politicians who have never run a business (successful or otherwise) in their lives. Sebelius went even further. She called on Anthem to provide public disclosure on how the rate increases would be spent —  a mandate that no other private companies must follow.

We already have a federal pay czar requiring companies to justify their pay raises and claiming authority to claw back bonuses already paid. Will the White House next demand that other businesses —  not just health insurers —  justify price increases deemed unreasonable, excessive or “extraordinary”?

On Capitol Hill, Democratic chief inquisitor Henry Waxman trained his sights on executives from Deere, Caterpillar, Verizon and AT&T in a brass-knuckled effort to silence companies speaking out about the cost implications and financial burdens of Obamacare. He scheduled an April 21 show trial of corporate heads who dutifully reported writedowns related to the Obamacare mandates. Obama Commerce Secretary Gary Locke joined in on the witch-hunt, pummeling the companies on the White House blog and TV airwaves for their “premature” and “irresponsible” disclosures.

After the Democrats’ own congressional staff pointed out that the companies “acted properly and in accordance with accounting standards” in submitting filings that were required by law, Waxman called off the hounds. But it was a temporary reprieve. Sebelius’ threat last week against individual market health insurers who raise rates to cope with new federal coverage mandates will be far from this desperate administration’s last.

As health costs skyrocket, doctors abandon the profession, hospitals lay off workers and private insurers shut down, the only way to quell the Obamacare backlash will be through an even more thuggish campaign to demonize, marginalize and silence nationwide dissent.

Here are some amusing responses to her Soviet-style bullying from Wall Street Journal readers.

Now you know why companies are terrified of government – and why they aren’t hiring here. Maybe they are hiring abroad, but not here.

Democrats don’t understand the effects of their policies – the purpose of the policies they enact is not to make our lives better. The purpose of their policies is to make them feel good about themselves. Their good intentions matter more than actual results. They think they are morally superior, and they balk when we don’t worship them for failing to understand economic realities. “But we are good people with good intentions”, they say, “you’re too stupid to run your own lives – you need our advanced training in socialism to make your lives better”. It’s not good enough.

News

FBI raids homes of anti-war leader and SEIU union leader

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Here’s the news from Forbes. (H/T Michelle Malkin)

Excerpt:

The FBI and the U.S. Labor Department are investigating prominent labor leader Andy Stern in their probe of corruption at the Service Employees International Union, according to two people who have been interviewed by federal agents.

The two organized labor officials met with federal agents this summer to answer questions about a six-figure book contract that Stern landed in 2006 and his role in approving money to pay the salary of an SEIU leader in California who allegedly performed no work.

Both officials spoke on condition of anonymity because of the sensitive nature of the investigation. The FBI and the Labor Department’s office of inspector general declined to comment for the record.

The disclosure about the federal inquiry of Stern – who abruptly resigned as president of the 2.2-million member SEIU in April – comes just weeks ahead of contentious congressional elections in which the union is spending an estimated $44 million to support its favored Democratic candidates.

The SEIU has been plagued with several financial scandals since 2008, when the Los Angeles Times reported that Tyrone Freeman, head of the union’s largest California local, misappropriated hundreds of thousands of dollars from the union. The union ousted Freeman and demanded that he return the money. No federal charges have been filed against him, but SEIU spokeswoman Michelle Ringuette said the union has been cooperating with the FBI.

The SEIU union is connected to Obama.

Oh, and Gateway Pundit reports on another SEIU union boss being investigated.

Excerpt:

Over the weekend the FBI announced that it was investigating Joseph Iosbaker for possible connections to overseas terror groups. Iosbaker and his wife Stephanie Weiner, both anti-war activists, are suspected of activities “concerning the material support of terrorism.”

[…]According to the SEIU Local 73 website, Iosbaker is listed as the Local 73 Chief Steward. Iosbaker was also quite active earlier in the year protesting the closing of the Republic Windows & Doors factory that made the national news. Iosbaker was then listed as an executive board member of the SEIU.

Oh, and the executive director of the Arab American Action Network is being investigated.