Companies feared getting attacked, so they bent over backward to mollify the former at the expense of the latter. Those new stock repurchasing rules, for one thing, allowed them to shore up their defenses by buying back stock. But, of course, that meant spending money that could've gone to innovate, invest in new technology and equipment, or reward workers.
That's when Lazonick says the financialization of the American corporation began in earnest, and blue-collar workers were left behind by corporate America and the government alike:. Reagan's mission was to cut the budget — which meant not spending money investing in the future of these workers. In the decades after this process started, manufacturing workers would find their numbers diminishing as corporations sought ways to please shareholders, and the government sought ways to lower taxes and deregulate the private sector.
When corporations borrow money, one would think that money would go into investment in the firm. But according to the Roosevelt Institute , a left-leaning Washington think tank, since the s, companies have invested less than 10 cents of each borrowed dollar. They've put far more effort into buying back stock which, thanks to the way executive compensation works, makes the C-suite richer and richer. That has also contributed substantially to the inequality we're seeing, as the main beneficiaries of buybacks are wealthy investors.
Meanwhile, the private sector has called on the government to invest in innovation. To put this another way: big business is asking the government to assume the risk involved in innovation, so they can take advantage of the benefits.
Navarro never mentions things like this. No one in the administration ever does. The way they tell the story, the only problem in corporate America lies with foreigners taking advantage of unfair circumstances and big multinationals that cut jobs domestically to tap cheap labor abroad. The administration thinks the remedy for that is punishing China — and other trading partners — who have a competitive edge. They look outward instead of inward.
Navarro hammered on this trend:. So if you address these issues of unfair trade practices, if you get better trade deals, if you stop things like forced technology transfer or the theft of our intellectual property, if you ensure that the sweatshops of the world live up to international standards for minimum wage and safe working conditions, if you have reasonable environmental protection, then American manufacturers can compete with anybody in the world.
If this is the way you look at that problem, you're not going to find a sustainable solution. The world didn't take America's jobs, America let the world have them without investing in a path to new ones because politicians were more interested in tax cuts, and corporate America was more interested in short term gains. For you. World globe An icon of the world globe, indicating different international options.
Get the Insider App. Click here to learn more. Some workers were hopeful Trump might speak up, as he had on behalf of workers at a nearby Carrier Corp. Despite the silence from Washington, McDowell said most of her coworkers enthusiastically supported Trump in the election. Peru is just one example of how offshoring rolled onwards even under a president who pledged to stop it. While complete data does not exist to pinpoint all U.
During the four years of the Trump administration, that program certified 2, petitions covering , workers who lost jobs that moved overseas. There were inquiries by local and county government, which sought to reverse the decision, he said.
Schneider, a French conglomerate, countered the view that it was curbing its commitment to U. Loss of the plant was a heavy blow for Peru, population 11,, which was once known as the winter home for several major circuses. Maria Rasputin, the daughter of famed Russian monk Grigori Rasputin, was mauled by a bear in Peru while working for a circus there. She survived. Our emails are made to shine in your inbox, with something fresh every morning, afternoon, and weekend.
So far, not so good. A group that advocates for federal workers says government records show pdf more than 10, jobs at federal contractors have been sent over overseas since Trump was elected. The organization, Good Jobs Nation, funded by unions and faith groups, wants the White House to hold these contractors accountable.
All told, in the year since Trump was elected, more than 93, jobs have been certified by the Department of Labor as lost to outsourcing or trade competition, slightly higher than the average of about 87, in the preceding five years.
Consider United Technologies, which is the parent company of Carrier, a maker of air conditions and heating equipment.
Local labor leaders say they feel betrayed. The reality is that the president has little leeway in federal contracting law to prevent companies, even those hired by the government, from shifting jobs overseas.
To actually protect good jobs in the United States, major fixes are needed to US trade and tax laws that make it profitable for companies to shift production and earnings overseas, as well as more investment in training workers for jobs that add more value.
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