Nel's New Day

April 17, 2014

Media Fails to Publish News

oregonianI tolerated The Oregonian, Portland’s newspaper, despite its conservative bent because I support newspapers. Founded in 1850, it’s the oldest continuously published newspaper on the West Coast. The newspaper went to delivery only four times a week in city areas and got thinner and thinner. I wondered why I was paying for it, but I’m a newspaper supporter. The last straw was when it switched to a tabloid image—or broadsheet format—with much more colored ink and much less news. [New format on right.]

To show my allegiance to newspapers I’ll keep Eugene’s Register Guard, but most of my news will come from the internet that gives me information that I don’t get anywhere else. Here’s a sample of news that doesn’t appear in my newspaper:

Outsourcing (or offshoring) is the biggest reason for unemployment. In 14 years, U.S. multinational corporations, accounting for 20 percent of the labor force, have cut 2.9 million jobs in this country while increasing overseas employment by 2.4 million. Offshoring is a bigger contributor to unemployment in the U.S. than laziness, the way that the GOP claims.

In 2010, the bottom 80 percent of the people had 12 percent of the net worth, two-thirds of the 18 percent they had in 1983. The top 20 percent had the remaining 88 percent in 2010, and the top 1 percent alone had 35 percent of all net worth.  This map shows the percentage of the United States that people own.

land mass

The corporate-controlled American Legislative Exchange Council (ALEC) drafts laws and passes them to lawmakers to implement. These are some of ALEC’s laws: Stand Your Ground, voter ID, right to work that eliminates unions, health savings account bills to benefit health care companies, and tobacco company privileges.

The United States has more people in prison than any other country. With 5 percent of the world’s population, the U.S. holds 25 percent of the world’s prisoners. China, with a population four times the size of the U.S., has 1.6 million people in prison—700,000 fewer than the 2.3 in the U.S. That’s more than 6 and a half times the 350,00 prisoners in the U.S. 40 years ago

incarcerated_americans_zpsb7c891bd

In 2009, non-Hispanic blacks, 13.6% of the population, accounted for 39.4% of the total prison and jail population. At the same time, whites accounted for 69.2 percent of arrests in 2011.

U.S. health care costs are the highest in the world at $8,233 per person. Norway is second at $5,388. The percentage of GDP is also much higher in the U.S., 17.6 percent in the U.S. with the next country, the Netherlands, at 12 percent.

After the Wall Street crash in 1929, the Glass-Steagall Act protected the people in the country for 66 years. It separated risky financial investments from government-backed deposits by stopping banks from using federally-insured savings to make risky investment. Without this separation, taxpayers cover the cost of losses from risky investments. In 1999, the Act was overturned in the Gramm-Leach-Bliley Act. Less than ten years later the country went into a deep recession that continues because of Wall Street’s control.

The GOP sweep of over half the states in the country allowed them to rearrange congressional districts after the 2010 census. The Republican Redistricting Majority Project was so successful that they could take over the House of Representatives with fewer Republican than Democratic votes. In 2012, 1.4 million more votes came from Democrats than Republicans, but the GOP took the House by 234 to 201 seats. Through gerrymandering, GOP state legislators redrew districts in Arizona, Florida, Michigan North Carolina, Ohio, Pennsylvania, Texas, and Virginia with the goal of putting Democrats into just a few districts. In North Carolina, 51 percent of the state voted Democratic, but the state sent 9 Republicans to the House as compared to only 4 Democrats. In the same way, these Republican legislators keep their seat although the majority of voters oppose them.

votes

The new majority in a Senate of 100 is now 60. President Obama’s first term saw a record number of filibusters, and 375 bills didn’t even come to a vote in the Senate because GOP members just threatened to filibuster. During the first six months of 2013, Congress passed only 15 bills that were signed into law. This is 8 fewer than the first six months of 2012 and 19 fewer than 2011. When Senate Democrats threatened to reform the filibuster, the GOP had held up 79 nominees for the U.S. Circuit Court and Courts of Appeal despite their qualifications.

Nixon’s Southern Strategy was designed to gain political power by exploiting the greatest number of ethnic prejudices. In 1970, Kevin Philips, Republican and Nixon campaign strategist, believed that the GOP couldn’t get more than 10 to 20 percent of the black vote but that would be enough to elect Republicans. He said:

“Republicans would be shortsighted if they weakened enforcement of the Voting Rights Act. The more Negroes who register as Democrats in the South, the sooner the Negrophobe whites will quit the Democrats and become Republicans. That’s where the votes are. Without that prodding from the blacks, the whites will backslide into their old comfortable arrangement with the local Democrats.”

The GOP used this strategy in 2008 and 2012 when it attacked Medicaid, Social Security, labor unions, and Obamacare. These programs benefit more white seniors, retirees, women, and children, but Republicans have convinced many in the United States that they are handouts to lazy, undeserving blacks and minorities. That’s the reason that GOP legislators and candidates continue to fight these programs although the majority of their constituents benefit from them. 

GOP tax plans shift the tax burden from the wealthy and onto working people. For example, when Ohio repealed the estate tax, the only people who benefits were those with estates bigger than $338,000. GOP wants to change from income to consumption taxes because the latter are paid primarily by people who earn the least. The GOP keeps capital gain taxes low, 20 percent, instead of the 39.6 percent top rate of other income for the wealthy. Despite their belief that they refuse to raise taxes, Republicans were comfortable with letting the payroll tax expire because these are only for the first $117,000 of wages.

shares of taxes

The United States has lost 40-50 percent of the country’s commercial bee hives this year because of colony collapse disorder. This is important because one-fourth of food in the country depends on honeybee pollination. Instead, the media typically reports something like this: “Thousands of Bees Attack Texas Couple, Kill Horses.” The loss of bees is connected to toxic chemicals in pesticides from Bayer and Monsanto. Acting like a nerve agent, the main chemical compromises a bee’s ability to feed and make its way back to its hive. These chemicals have long been banned in Europe.

The number of temporary workers has grown by more than 50 percent to almost 2.7 million since the recession ended. Including freelancers, contract workers, and consultants raises the number to almost 17 million workers who not directly employed by the companies who hire them. That’s 12 percent of the workforce. Temporary workers receive low pay, fewer benefits, and almost no job security. Because they cannot spend as freely as permanent workers, the economy suffers.

In 2011, only 22 percent of the people had heard of the Citizens United Supreme Court decision. A 2013 Gallup poll showed 79 percent of Americans want restrictions on campaign contributions to House and Senate candidates. Also 50 percent support a publicly funded campaign finance system with private contributions completely eliminated. The McCutcheon v. FEC Supreme Court decisions that put far fewer restrictions on campaign contributions was far more widely announced this spring. The media need to keep talking and writing about a decision that has made the United States an oligarchy, owned by the wealthy, just like Ukraine.

Six corporations–Time Warner, Disney, News Corporation, Viacom, Comcast, and CBS–control about 90% of the media in the U.S. They want to make money so they use the guidelines, “if it bleeds, it leads.” They print what Democrats and Republicans say but not any facts. They skip “dangerous” facts about global warming, peak oil, population growth, political lobbying, defense spending, etc. Public broadcasting, including NPR, is becoming farther right as people like the Koch brothers buy the media organization. When two comedy shows, The Daily Show and The Colbert Report, have more news than the so-called news shows, people are not receiving the news.

February 19, 2013

Fracking: The Good, the Bad & the Ugly

After waiting for months, New York activists have learned that the decision about whether to lift the state’s moratorium on fracking has been further delayed because the public health review of high-volume hydraulic fracturing has not been completed. The review of respiratory diseases, accidents and injuries, and birth outcomes is monumental because it is the first comprehensive studies of fracking health impacts at either state or federal level.

At the same time that officials are considering the serious health effects of fracking, President Obama may appoint pro-fracking Ernest Moniz to head the Department of Energy. Moniz has promoted natural gas as a “bridge fuel” to lower carbon pollution while new innovative forms of energy are being developed. Almost two years ago, he told the Senate Energy committee that water and air pollution risks associated fracking were “challenging but manageable.”

Fracking gets natural gas out of rock formations by bombing them with chemical-loaded fluid, leaving behind foul water, the water that goes to crops and animals that humans consume. But there’s another food/fracking connection. Because cheap synthetic nitrogen fertilizer require natural gas to be synthesized, an increasing amount of this fertilizer will come from fracked natural gas. Farmers will then become powerful allies in overriding regulations and fighting back opposition to fracking.

During the past decade, the U.S. fertilizer industry was offshored to places like Trinidad and Tobago, but the supply of natural gas there is disappearing. Fracking in the U.S. has made natural gas here abundant, driving prices drastically down, 75 percent less than in 2008. Fertilizer prices remain high because of high crop prices so fertilizer companies have hit a bonanza.

At the same time, taxpayers are paying for corporation profits. In Iowa, for example, huge fertilizer industries received over $70 million in tax incentives from Iowa and $161 million in property taxes rebates from the county where it is located. Another company is investing $1.2 billion to build a nitrogen plant in North Dakota. The company can sell a ton of anhydrous ammonia for $800, which costs about $82 worth of natural gas.

While taxpayers at local, state, and national levels pay these corporations to make this money, they taxpayers receive environmental liabilities from excess nitrogen seeping into streams and rivers that feed a massive algae bloom that erases sea life; emissions of nitrous oxide, 300 times more potent than carbon; and the elimination of organic matter in soil.

Practical farming could prevent this destruction. Adding “small grain” (oats or wheat) plus nitrogen-fixing cover crops, farmers can drop their nitrogen needs up to 80 percent. Corn is the most nitrogen-intensive among major field crops; crop rotation can solve most of their problems. But Big Ag is becoming as powerful as Big Oil, and the American Farm Bureau Federation wants fracking.

All over the country, people are screaming about the need for fracking because we’re short on fuel. But prices are too low here for the greedy corporations so gas companies want authorization from the Department of Energy to export more of it overseas. They already have permission to export the gas to the nation’s free trade partners, but these aren’t major potential customers.

Wanting bigger profits, companies need permission to sell the gas to such non-free trade countries as South Korea, India, China, and Japan. Sixteen gas producers are working to get this permission, and companies are getting permits to build huge facilities to convert the gas to liquid by chilling it to -260 degrees F. to ship it overseas. Thus far, just one state, Pennsylvania, has about 6,000 wells. Permission for exporting could build that number to 50,000 wells.

If the agency approves the permits, gas equal to over one-fourth of current U.S. consumption will leave the country. A year-old study published by the Energy Department’s Energy Information Administration published in January 2012 concluded that domestic natural gas prices would rise dramatically if the U.S. began exporting.

In North Dakota “oil patch” boom towns, fracking has caused a spike in serious injuries and health problems—burns from hot water, hands and fingers crushed by steel tongs, injuries from whipsawing chains, bodies brought in from accidents on roads where truck drivers know that time is money. The impact of working outside in freezing weather, emotional isolation, poor nutrition, drug use, and heavy drinking combines with highly increased numbers of rapes, sexual assaults, and domestic violence.

Both workers and local residents suffer from the toxins related to oil and gas extraction. Doctors in Pennsylvania are now under a “gag rule” that keeps them from telling their patients about the chemicals that make them sick. A large number of workers lack health insurance, causing local hospitals and government providers to absorb the enormous costs from uncompensated treatment. The debt in just one hospital increased 2,000 percent to $1.2 million in five years.

If workers and residents survive the injuries, their health still isn’t safe. A byproduct of fracking is silica dust which, if inhaled, can cause lung inflammation leading to silicosis, an incurable respiratory condition known as silicosis. Or the inflammation can cause lung cancer, chronic pulmonary obstructive disorder, kidney disease, and autoimmune conditions. The situation is reminiscent of workers with health problems related to asbestos and coal exposure.

Fracking causes even more impacts:

Methane: Natural gas is a significant contributor to global warming pollution; scientists report alarmingly high methane emissions from these fields.  

Water Pollution: Methane released during fracking also ends up in the water. That’s how people living near gas drilling operations can light their tap water on fire. And companies aren’t required to inform people about all the chemicals used in their fracking process. Thanks to Dick Cheney, fracking is exempt from the Safe Drinking Water Act.

Water Consumption: Using between 2 million and 13 million gallons of water to frack a single well plus more to drill the well, fracking will make water shortages occur more rapidly than the crisis predicted by 2030. Most of this water is either not recovered or unfit for use, requiring disposal in an underground injection well. Texas and Pennsylvania already have water shortages.

Trucks: Drilling and fracking just one well can require 1,000 truck trips, causing pollution, accidents, wear and tear on infrastructure, and big bills for taxpayers.

Economic Fallout: Taxes pay for repair to the infrastructure and the health issues of uninsured workers. Beyond that taxpayers lose personal insurance. The Huffington Post reported, “Nationwide Mutual Insurance Co. has become the first major insurance company to say it won’t cover damage related to a gas drilling process that blasts chemical-laden water deep into the ground.” Their memo said, “Risks involved with hydraulic fracturing are now prohibited for General Liability, Commercial Auto, Motor Truck Cargo, Auto Physical Damage and Public Auto (insurance) coverage.”

The cost doesn’t end with the health and insurance issues. Studies have begun to show a link between pollution, including gas, and crime.

Therefore huge corporations want to make huge profits selling gas offshore and driving United States prices up while destroying the environment and costing taxpayers a fortune. After the corporations have finished raping the land, the short-term jobs will disappear along with all the farming, tourism, dairy, and other jobs that vanished because of fracking. As Tish O’Dell, co-founder of the Cleveland-area group Mothers Against Drilling in Our Neighborhoods, said,

“If water is contaminated and fish die, what are the fishermen going to do? If you have parks where people go for peace and quiet, what happens when you turn it into an industrial landscape? If you have an organic dairy and the soil is polluted, what does that mean? These are all valid questions.”

And all this because the conservatives lie to the people about fuel and energy.

October 30, 2012

Bain Capital, Romney – Part Two

Before I continue with Part Two of the Bain Capital debacle, I want to say how sad I feel for the devastation of Hurricane Sandy, both in the Caribbean and in the United States. In addition, I am grateful for the speed with which government has moved to keep the storm’s effects from as much tragedy as possible. In watching all the work that has been done to save people’s lives and make their lives a bit better, I am also angry at the outrageous comments made by Michael Brown, head of FEMA largely responsible for the disaster in New Orleans following Hurricane Katrina and now a radio host in Colorado. From his safety on the other side of the country, he criticized President Obama for moving too fast. Yesterday he talked about how New Yorkers were saying that the storm, Sandy, isn’t a big deal. The people hit by Sandy are indeed fortunate that he is no longer in charge of government emergency assistance.

The same people are also fortunate that the United States has a president who believes that government should help people in need after such an act of nature. Mitt Romney not only said in the primary debates that the federal government, and probably the state governments, should have no part in emergency aid, he also refused to answer any questions today—14 times after one interview–about how he sees the role of FEMA.

In his writings, David Stockman, budget director for Ronald Reagan, summarized Bain Capital in less than glowing terms: “Bain would put in a little money, borrow much more, and buy out a company. It wasn’t hostile because Bain paid company executives so much they welcomed a takeover. Bain would have the company fire the workers and sell off assets to pay the crushing debt and high ‘management’ fees to Bain. Often the ‘saved’ company would go bankrupt after Bain left. Companies almost never produced more useful goods or services or employed more people after Bain than before.”

Stockman was kind enough, however, not to explain the source of Romney’s capital to set up Bain. When Romney says he knows how to start a small business, he may mean one that is funded by Central American elites linked to death squads in El Salvador. After initially struggling to find start-up investors, Romney traveled to Miami in 1983 to win pledges of almost 40 percent of Bain’s $37 million start-up money. Huffington Post reporter Ryan wrote, “There’s no possible way that anybody in 1984 could check out these families–which is the term that [Romney’s campaign] use, these families–and come away convinced that this money was clean.”

During the 1980s, Romney managed to get lots of cigarettes into Russia. Bain & Co.—and Romney–worked with British American Tobacco (BAT), which is behind brands like Kool and Lucky Strike, to move their products into Russia. Before Bain, BAT was largely locked out of the Russian market; now it controls almost one-fourth of cigarette sales that have skyrocketed since the Soviet Union collapse. Then Bain moved into the U.S.; a month after Romney took over, the first got a $1 million contract with Philip Morris.

Romney clearly described Bain’s goal in 1985: its purpose has never been to create jobs; its purpose is to “harvest” companies. The most recent harvested company is moving into China right before this year’s general election.

Although Romney is no longer active in Bain, he’s still reaping the benefits from moving Sensata Technologies from Freeport (IL) to China. The company made record revenues last year, and workers have been working three shifts for 24 hours a day. They make $14-$17 per hour with benefits. The first thing that Bain did after buying the company was to organize its capital funds in the Cayman Islands so Bain could avoid paying taxes on these funds. Now Bain will get money for relocating the plant offshore while U.S. taxpayers have paid $780,000 to retrain some of Sensata’s fired workers.

Romney has a history with Bain and China. In 1998, when he was running Bain, he saw the horrible conditions of workers making $.24 an hour at the Global-Tech Appliances plant in Dongguan and invested millions in the firm. But he could make money by exploiting these workers.

William Cohen wrote in Bloomberg, “Is there any fairness in a system where a group of people can borrow a bunch of money to buy a company and pay themselves millions of dollars in dividends and fees, while the company itself ends up bankrupt and its employees lose their jobs, health insurance and pensions?”

Romney’s experience with Bain makes him uniquely unqualified to be president of the United States. In campaigning he said, “A prairie fire of debt is sweeping across Iowa and our nation. Every day we fail to act, that fire gets closer to the homes and children we love.” Our collective debt is no ordinary problem: According to Romney, the debt will “burn our children alive.” Yet he made his personal fortune by borrowing vast sums of money that other people were forced to pay back. His experience with Bain shows that he is one of the greatest and most irresponsible debt creators of all time, piling more debt onto more unsuspecting companies and writing more gigantic checks that other people have to cover than perhaps all but a handful of people on planet Earth.

A private equity firm like Bain typically finds floundering businesses with good cash flows. It puts down 10-30 percent of its own money and then borrows the rest from a large bank to buy a controlling stake in the company. Bain avoided the hostile takeover, done without the company’s consent, by buying off the management with huge bonuses. The takeover companies, including Bain, aren’t on the hook for the debt; the company they purchase is. That company is destroyed by just the interest they have to pay, either going bankrupt or slashing benefits and firing workers. Then Bain can swoop in and purchase the company for pennies on the dollar, the vulture approach.

Romney is a prime example of why lowering taxes doesn’t create jobs. He pays low taxes while he destroys jobs or sends them offshore. And he can’t pretend that he doesn’t know what happens at Bain.  “I insisted on having almost dictatorial powers.” Colleagues described him as cunning, manipulative and a little bit nuts, with “an ability to identify people’s insecurities and exploit them for his own benefit.”

In the business world, lying and changing positions is praised because it makes money. Romney seems genuinely puzzled by the public’s insistence that he be consistent. “I’m not going to apologize for having changed my mind,” he’s fond of saying. But that doesn’t translate into successful leadership of a country.

And it’s all legal. The entire business of leveraged buyouts wouldn’t be possible without a provision in the federal code that allows companies like Bain to deduct the interest on the debt they use to acquire and loot their targets. And he couldn’t pay such low taxes if it weren’t for the same tax code. Romney rails against the national debt at the same time he exploits a tax deduction specifically designed for mortgage holders. He bilks every dollar he can out of U.S. businesses before burning them to the ground.

Romney also shows his lack of ethics in his tax avoidance strategies. He used a loophole to “rent” the Mormon church’s tax exemption status and defer paying taxes for 15 years. Bloomberg News reported that Romney set up a charitable remainder unitrust (CRUT) in June 1996 just before Congress cracked down on the loophole in 1997. “In this instance, Romney used the tax-exempt status of a charity — the Mormon Church, according to a 2007 filing — to defer taxes for more than 15 years,” Bloomberg’s Jesse Drucker explained. “At the same time he is benefiting, the trust will probably leave the church with less than what current law requires.” The amount available to go to the Mormon Church has decreased from at least $750,000 in 2001 to $421,203 at the end of 2011 as Romney has collected yearly cash payments from the trust. Although a small amount when compared to Romney’s fortune, he has many other methods of avoiding taxes.

Romney’s hypocrisy is overwhelming. His strong opposition to federal aid has no relationship to the experiences of himself and his family. According to Romney’s biography The Real Romney, written by  journalists Michael Kranish and Scott Helman, the United States first helped the Romney family in 1912: “Fortunately for the Romneys, the U.S. government, which had once chased Miles [Romney] to Mexico due to his polygamy, now welcomed the Romneys and other Mormons to the United States. Congress established a $100,000 relief fund that enabled the Romneys and other Mormon exiles to receive food and lodging. Initially, the [Romneys’] stay on U.S. soil was to be temporary. The El Paso Herald reported on October 25, 1912, that Gaskell Romney and his family, including little George, had gone to Los Angeles “until it is safe for his family to return to the colonies in Mexico.’”

Much later George Romney received welfare from the federal government. According to his wife,Lenore Romney, [George Romney] was a refugee from Mexico. He was on relief, welfare relief for the first years of his life. But this great country gave him opportunities.” Romney is unwilling to give anyone else the same opportunities that his family had.

The Olympics is a classic example of Romney’s hypocrisy. While describing his magical leadership to save the faltering Winter Olympics in 2002, much of his success came from the $1.5 billion that he took from the federal government, an amount 1.5 times the amount, adjusted for inflation, spent by the federal government to support all seven Olympic games in the United States back to 1904.  These expenditures averaged $625,000 in taxpayer money for each athlete, an increase of 5,582 over the $11,000 average at the 1984 games in Los Angeles. Even Sen. John McCain pointed out that at the time that this was a bailout.

Donald Barlett and James Steele reported that “wealthy Utahans used the games as an excuse to receive exemptions for projects that would otherwise never meet environmental standards, or to receive generous subsidies for improvements of questionable value to the games—but with serious value to future real estate developments.” bailout.

Romney has always been clear about all his priorities. The Salt Lake games came just months after 9/11. When a representative of widows and orphans whose husbands and fathers were firefighters killed in the terrorist attack inquired about free or discounted tickets to games, Romney twice denied the request, saying that there was a policy against giving away tickets. Six weeks later, Romney offered a hundred tickets, valued at $885 each, free to Utah legislators.

Romney has always used Bain to justify his ability to become president instead of his time as governor of Massachusetts. During his one term the state ranked 47th in job growth; suffered the second-largest labor force decline in the nation with only Louisiana greater because of Hurricane Katrina in 2005; lost 14 percent of its manufacturing jobs, double that of the nation at the time perhaps because he vetoed legislation that would have banned companies doing business with the state from outsourcing jobs to other countries; experienced “below average” economic growth and was “often near the bottom”; and piled on more debt than any other state despite his raising fees while he was in office.

That’s what would happen to the United States if he were to be elected—or appointed—president.

July 19, 2012

Romney’s Problems Grow

Mitt Romney’s campaign has two serious dilemmas: the call for his releasing tax returns and the outsourcing done by Bain Capital, Romney’s personal business. To solve the first one, he sent his wife, Ann, to convince the media that he is a truly good person. In an interview with Robin Roberts on ABC, Ms. Romney said:

“You know, you should really look at where Mitt has led his life, and where he’s been financially. He’s a very generous person. We give 10 percent of our income to our church every year. Do you think that is the kind of person that is trying to hide things, or do things? No. He is so good about it.”

When asked why they don’t release the tax forms if there is no problem with them, Ms. Romney continued:

“Because there are so many things that will be open again for more attack… and that’s really, that’s just the answer. And we’ve given all you people need to know and understand about our financial situation and about how we live our life. And so, the election, again, will not be decided on that. It will be decided on who is gonna turn the economy around and how are jobs gonna come back to America.”

My favorite phrase from her interview is “you people,” the term that smacks of an arrogance in the same way that Michelle Malkin’s comment on Fox and Friends Weekend did when she said,

“Romney types, of course, are the ones who sign the front of the paycheck, and the Obama types are the one who have spent their entire lives signing the back of them.”

Lots of people are betting that Romney’s tax returns would show some shady deals. The first question is how he got between $21 million and $101 million in an IRA that can’t collect more than $30,000 a year. Another questionable activity comes from when he was chairman of Marriott’s audit committee. At that time, a Marriott tax shelter, known as “Son of BOSS,” involved creating paper losses to offset taxes on real income. The Internal Revenue Service challenged the shelter, and Marriott lost in court. Judges called the shelter “fictitious” and a “scheme,” and the company was forced to pay $29 million.

The Republicans who are telling Romney to release the tax returns have found a solution for his second problem, outsourcing. Jonah Goldberg summarized their position: “Outsourcing isn’t evil. Building businesses overseas doesn’t necessarily cost American a thing, and it often creates wealth and value both here and abroad.”

The 170 workers losing their jobs in Freeport (IL) because Bain owns their jobs disagree with Goldberg. In 2006 Bain bought Sensata Technologies, based in Attleboro (MA), and plans to move production to China during the month of this year’s election despite the fact that the business has never lost money. The city council has drafted a resolution that “calls on Mitt Romney to come to Freeport to meet the people directly affected by Bain Capital’s outsourcing and to step in and stop the outsourcing of these jobs from Freeport to China.” Although Romney does not operate Bain, he does have a controlling financial interest.

Robert Reich wrote that the biggest problem with corporations is that they have no concern for the people of the United States. He quoted an Apple executive who told the New York Times, “we don’t have an obligation to solve America’s problems. Our only obligation is making the best product possible.” Reich might have added “and showing profits big enough to continually increase our share price.” Apple’s employment of 43,000 people in the United States is dwarfed by their contracts with over 700,000 workers overseas. U.S. workers get six percent of what people pay for an iPhone.

The Republicans who would solve the problem of outsourcing by  lowering salaries in this country and perhaps getting rid of the minimum wage overlook the fact that Chinese workers live in company dormitories where they can be called up to work any time day and night. Apple assembles iPhones in China both because wages are low there and because Apple’s Chinese contractors can quickly mobilize workers from company dorms at almost any hour of the day or night.

Reich also cited another reason for outsourcing as this country not educating young people to do the necessary high tech jobs farmed out to Japan and Germany, in large part because the government does not pay for education. While this country forces young people to ratchet up high student loans, China invests in world-class universities and research centers.

The United States also has substandard transportation and communication systems compared to other countries. Outmoded ports, congested roads, and faulty bridges damage the opportunities for people to have jobs in this nation.

Without support from corporations, this situation will only exacerbate. Without government requiring corporate support, these companies will continue to outsource. All they want are lower taxes and fewer regulations. To get what they want, they buy elections.

Goldberg needs to know the following results of outsourcing:

U.S. multinationals cut their U.S. workforces by 2.9 million in the 2000s while increasing employment overseas by 2.4 million, according to the U.S. Department of Commerce. The Bush tax cuts may have caused the 35 biggest U.S.-based companies to add jobs, but almost three-fourths of these jobs were offshore.

U.S. manufacturing has suffered the biggest blow from offshoring. Working America reported that manufacturing jobs dropped every month for 43 months—the longest stretch since the Great Depression—between August 2000 and February 2004. Between 1998 and 2008, the time that George W. Bush gave corporations big tax cuts to create jobs, the number of manufacturing plants shrank 12.5 percent. The country lost 51,000 plants during those ten years, plants that gave stable, middle-class jobs.

Revenue from the global electronics contract manufacturing industry reached $360 billion in 2011 and is expected to expand to $426 billion by 2015. These companies contract outside firms primarily in third-world countries. Other huge companies, Nike for example, subcontracts all its shoe production to foreign companies.

Private equity firms have upped the competition between corporations by creating the fear that if CEOs don’t run their businesses to maximize short-term profits and share prices that they will be taken over by a company like Bain Capital. Their answer is outsourcing. If they lose the company to a company like Bain, “the standard strategy has been to load up company executives with so much stock and stock options that they don’t hesitate to make difficult decisions such as shedding divisions, closing plants or outsourcing work overseas,” according to Steve Pearlstein, a professor of public and international affairs at George Mason University and a Pulitzer-prize winning columnist.

Three-fourths of the companies surveyed by Duke’s Fuqua School of Business gave labor costs as their reason to relocate offshore, but this is becoming a weaker excuse for taking jobs away from the United States.  The labor cost gap between the U.S. and China has shrunk by almost 50 percent within the last eight years; this gap is project to be just 16 percent by next year. Fuel prices are also rising, increasing the costs of transportation.

The same survey showed that “only 4 percent of large companies had future plans for relocating jobs back to the United States.” No reason was given, but Seth Hanlon thinks that their reluctance is the U.S. tax code that “rewards companies for making investments abroad—and leads to them shifting offices, factories, and jobs abroad even if similar investments in the United States would be more profitable absent tax considerations.”

Tax loopholes and porous rules allow multinational companies to avoid U.S. taxes by reporting much of their profits in tax havens such as Bermuda and the Cayman Islands. That may be why Romney is fond of these tax havens. Shifting profits into tax havens costs the U.S. Treasury tens of billions of dollars in revenue every year. While President Obama wants a law that benefits companies for keeping jobs in the United States, Romney wants to make U.S. corporations’ overseas profits exempt from U.S. taxes, understandable because this would financially benefit him.

Today, the Senate tried to vote on the Bring Jobs Home Act to end taxes that reward companies that ship jobs overseas and instead provide a tax cut for American businesses that move overseas jobs and business activity back to America. A filibuster killed the bill was killed with a 56-42 vote; it’s the standard Republican position that 60 out of 100 votes are required to pass any Senate bill. The three brave Republican senators voting against the filibuster were Susan Collins (ME), Olympia Snowe (ME), and Scott Brown (MA). Therefore the Senate Republican “majority” of 41 men and 3 women have determined that taxpayers must continue to pay for the offshoring of jobs.

According to The Hill, Republicans wouldn’t vote for a bill to bring jobs back to the United States because they wanted to include an amendment repealing the Affordable Care Act. Senate Majority Leader Harry Reid, (D-NV) said, “It’s no surprise Republicans are on the side of corporations making big bucks sending American jobs to China and India. After all, their presidential nominee, Mitt Romney, made a fortune outsourcing jobs, too.”

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Civil Rights Advocacy

Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has. -- Margaret Mead

AGR Daily News

Transformational News; What Works For Seven Future Generations Without Causing Harm?

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

Jennifer Hofmann

Inspiration for soul-divers, seekers, and activists.

Occupy Democrats

Progressive political commentary/book reviews for youth and adults

V e t P o l i t i c s

politics from a liberal veteran's perspective

Margaret and Helen

Best Friends for Sixty Years and Counting...

Rainbow round table news

Official News Outlet for the Rainbow Round Table of the American Library Association

The Extinction Protocol

Geologic and Earthchange News events

Central Oregon Coast NOW

The Central Oregon Coast Chapter of the National Organization for Women (NOW)

Social Justice For All

Working towards global equity and equality

Over the Rainbow Books

A Book List from Gay, Lesbian, Bisexual, and Transgender Round Table of the American Library Association

The WordPress.com Blog

The latest news on WordPress.com and the WordPress community.

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