Since the inception of the Stimulus Bill in early 2009, conservatives have blamed the sluggish economy on government spending and a ballooning national debt. An incentive system of this type could not involve loopholes, though it would have to provide a measurable tax break on payroll taxes for those companies that add a certain number of workers above a certain salary level per year. In the 1990s, China became the Western world’s manufacturing hub for basic goods and products and has since expanded into high tech and defense manufacturing. Thom Hartmann, a writer and reporter, describes at length how corporations co-opted the use of human rights, in his book Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights (Rodale Press, October 2002). Another problem is the government’s failure to create a strong enough tax incentive system that would encourage corporations to add jobs to the US economy. Instead, it is reducing funding to the Pell Grant program, and, starting in 2012, removing subsidization for graduate school loans. With the lack of incentive to do otherwise, they are acting rationally. There will surely be setbacks and unforeseen hurdles in policy making, but to begin to create jobs in the short term and deliver return on investments in the long term, the government needs to close tax loopholes and spend money on targeted infrastructure development. According to Smith and Doyle (2002): “A further, crucial aspect of globalization is the nature and power of multinational corporations. The precise figures on offshoring are unavailable, as U.S. companies are not required to publish their domestic employment statistics. This is nothing new—Walmart has been enabling this kind of wealth and job flow for years, and Dell and other large electronics manufacturers maintain similarly sized production operations with Foxconn—but the practice shows that labeling Apple as an American company is questionable. His argument was based on “the general good” that a globally integrated enterprise could do for the world. Given the current policies governing their behavior in today’s markets, who can blame them? This was when the multinational corporation was born, creating manufacturing operations in other countries and selling to those countries’ local markets in order to circumvent high tariffs and taxes in their own jurisdictions. <> ;�{x���dz���_>�������������������o�y��l�ݼ}��7f������7n�i����o�͇�ǟ�����������W�w�Wo^l6�~��y���M/:�3ta��w���MS7����'ښpr����nk�ɻ��y~f����ǿ���g��ak�3h|��9ša0���r��V�81��6�_��]p�fۙ;��c�2�`v'������x��n�IM���6�nPm��Өo"��ı���q�N��-�����b2yiL�OC�&9�U�3��$C۰�ƙ����c����������t���h�і.�l�8/v��gd���۸�M�cg�쩹�!t�ɶ?l��g. Of the roughly 27 million jobs created during this period, 98 percent were in the nontradable sector, with government and healthcare accounting for 40 percent. It details the 1886 ruling also mentioned above on this page. For this to be done effectively, there will need to be a very close collaboration between the government and private sectors. Both companies are emblematic of many trends in American business. Over the past two years, politicians have used the profit growth of many U.S. Fortune 100 companies as evidence of an economic recovery. In the tradable sector, there was significant movement of job classes up the value chain, average salaries have risen in accordance with U.S. economic growth, and are rising even faster in recent years. Roughly 20 percent of the 100 companies polled had an offshoring strategy in 2005. %PDF-1.5 As a result, education is becoming harder to access even for the best and brightest, a phenomenon that will only weaken the nation’s ability to compete in the emerging global labor marketplace. Free trade with Canada began in 1987, leading to the establishment of the North American Free Trade Agreement under President Clinton in 1994. So Apple has added jobs since 2008, but the vast majority of them have been low-paying positions. Multinational Companies (MNCs) have been expanding their work forces, but they are expanding primarily overseas, and American workers are facing a new reality—they are no longer competing against 140 million other Americans, but against three billion people from all over the globe, many of whom are hungry, determined, and increasingly well educated. x��]YoG�~7���O6 �*���\D�B3�Z�b���MI\�Z�����/l�geV7�� ����#22�/"�Ϟ~�z~���g��/>^�7?? But without that vision, without a government that can create, articulate, and implement that vision, the prospect of recovery is specious at best. The panorama resembled the Midtown Manhattan of about five years ago. Meanwhile, the tradable sector added only 600,000 U.S. jobs, but the value-add went from $79,000 to $120,000 per worker, a 2.8-percent annual increase, and a 52-percent increase overall compared to the 12 percent overall increase in the nontradable sector over the same period of time. Such companies now account for over 33 per cent of world output, and 66 per cent of world trade (Gray 1999: 62). In this atmosphere, the U.S. government should be working harder than ever to educate our population and boost the skills of our workforce. In 2007, IBM reported having 121,000 workers in the United States. For the millions of people who have been lifted out of relative poverty in developing countries where political stability and democratic processes are also strengthening, it is difficult to deny the positive benefits of globalization. Of course, the issue of culture has long been a factor. It would be simple to fix this domestic job reporting problem, but to date there are no enforcement mechanisms set up by the U.S. government or the Securities and Exchange Commission that would require companies to submit their by-country employment statistics in quarterly reports. Angelina Clarke, an emerging markets expert and consultant in Sao Paolo, Brazil, explained, “If you are not learning constantly, and you are not scared that a hungry kid from an emerging market will eat your lunch, then you’d better have very rich parents, government protection for your industry, or a killer network of hard-to-replicate personal connections. endobj The high spending rate by the American people and the government has certainly contributed to the U.S. economic problem, but this may be just a trend, and it is one that can be reversed much easier than globalization. stream This poses many challenges for policy makers who are trying to work on solutions to the employment crisis. The Rise of the Multinational Corporation Photograph via Flickr by Benjamin B. But for the first time ever during an economic recovery period, huge corporate profits are not translating into domestic job growth. Or the control is desired … In mid-2008, Apple reported 35,100 employees worldwide, 13,600 of whom worked in retail. Apple trades on a U.S. Stock Exchange and has retail stores around the country, but in reality it is a global enterprise with, aside from its research and design operations, diminishing ties to the U.S. Although MNEs have existed for a very long time, scholars first attempted to understand the nature and drivers of their cross-border activities during the 1950s. The picture that is emerging is an American workforce that is downwardly mobile. endobj Considering current policies and the increased competition in the global work force, the idea that the tradable sector is going to add jobs in the U.S. anytime soon is fantastical. Surpassed Exxon Mobile as the largest company in the U.S. in market cap as... That is emerging is an American workforce that is downwardly Mobile, on the other hand, believe the... 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