Millionaires do not create jobs. Not here!
By martin cross, 18th Apr 2012 | Follow this author
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Posted in WikinutNewsPolitics
Millionaires export jobs… for more profit; and ruin the economy in the process.
- Just because you are told something does not make it true.
- A prime example
- Outsourcing everything. Just good business practice?
- Rake in the profits
- Where has all the tax revenue gone?
- How to stay a super power
Just because you are told something does not make it true.
Politicians keep on contending that it is the rich, the millionaires, who create jobs by their activities and that they should be rewarded for this by tax breaks. Saying something three times does not make it true. Do these plutocrats actually create jobs that are beneficial to the economy or is this just a convenient fiction to be reiterated like some litany until it assumes the semblance of truth? Tell someone every day that they are free and he will remain your slave forever. Tell someone every day that it is the rich who create the jobs and then they can steal at will.
A prime example
Steve Jobs, the late CEO of Apple Inc, is lauded as an example of a job creator. He and his small team of designers have developed a string of successful products, culminating in the latest IPad. Surely, these products must create jobs!
Agreed, these products have to be manufactured and new products mean continued employment or new jobs for those manufacturing them… but where are these products being produced? Not in the USA. No US jobs are being created. The products are manufactured in China, a Communist country, the world’s next super power, which the USA is doing everything it can to usher into that position.
Outsourcing everything. Just good business practice?
This is not an isolated case. Everywhere you look, goods that at one time were produced locally are being made in China, or Thailand, or Malaysia… anywhere but at home, where they would produce jobs, income that would be spent in the local economy, and taxes for the local and federal administrations to utilize, in a moment of mental aberration, on job-creating schemes (like the Hoover Dam in the 1930s) or in supporting those robbed of their source of income by companies exporting their jobs overseas.
Rake in the profits
The rich would argue that they are just acting in the best interests of their shareholders (other rich people and corporations); that they are just seeking the cheapest production costs in a globalized world economy. If they can have their products manufactured for $1 a day instead of $10 an hour and avoid such inconveniences as medical benefits and social security payments. Does it matter that there are none of the quality and safety standards required in the USA? When customer services jobs are exported abroad as well, a customer is going to get little satisfaction from any complaint.
Isn’t the extra profit enough of an excuse. Wouldn’t it be anti-American not to seek to make the best profit? But who gains from that extra profit? Anti-Americans!
For more info on the extent of jobs being exported or ‘outsourced’, see this report.
Where has all the tax revenue gone?
Every job exported takes that income out of the economy, takes the tax revenue from that income out of local and federal government coffers, impoverishes another family who then requires assistance from the very government coffers that have been depleted in the first place. So that the rich can make more profit, more money for themselves that some creative accountant will squirrel away from the clutching hand of the taxman.
The rich would argue that they are taxed enough already (after all, they have all their politicians to support). Steve Jobs took only $1 in salary in the couple of years before his death; he lived, well, on the investment income from his stock options, on which he paid less than 13%. A just reward for creating so many jobs abroad! Mitt Romney, who made his millions in real estate (one of those industries in which the drones only get paid when they make a sale) paid around 11% on his earnings. Not to be outdone, the Democrats are no better: President Obama paid only 13% in tax in 2009.
How to stay a super power
A super power attains and maintains super power status by manufacturing the majority of the world’s goods from resources, which it controls. This was the case with Britain and the British Empire and subsequently the USA, which had the added advantage of having most of the materials required readily available at home rather than having to ship them in.
Stop using home-based resources and all the associated home-based jobs are lost and the economy is put at risk. Bring in essential resources from countries over which you have no control and you significantly multiply that risk. Take enough manufacturing jobs out of the economy and it will collapse: there are simply not enough real jobs to support the pyramid of service industries that feed of the income from manufacturing and extracting raw materials.
The census shows that some 50% of Americans are near or below the poverty level. The majority of any new jobs being created are in low-paid service jobs. Graduates are flipping burgers. Manufacturing is at an all-time low and the majority of components and materials being used are not home-produced. Virtually everything in every home in the USA is imported (or its components have been) and most of that from China. The Chinese economy is predicted to outstrip the US economy within the next five years (and its consumer spending has hardly started!). How long do you think the USA will hang on to super power status?
What can be done? Read on…
Comments
18th Apr 2012 (#)
Excel;lent article. Couldn't agree with you more. Thank you Martin.
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