American Multi-nationals Moved 1.5 Million US Jobs to India and China
American corporations created 453,000 jobs in India, a whopping 642% increase in a decade that saw the same corporations cut 846,000 jobs at home.
Overall, US multinational corporations added 1.5 million workers to their payrolls in Asia and the Pacific region from 1999 to 2009, and 477,500 workers in Latin America, according to US Commerce Dept data as reported by the Wall Street Journal.
From 1999 to 2009, the multinational companies also reduced capital-investment spending in the U.S. at an annual rate of 0.2% and increased it at a 4.0% annual rate abroad. This occurred in spite of huge Bush era tax cuts for the rich.
Bulk of the increase in overseas investment and hiring by U.S. multinationals has been in the service sector where most of the American middle class jobs have been lost. Among U.S. multinational firms in manufacturing, about 60% of employment is still in the U.S. But the manufacturers cut their U.S. payrolls by 2.1 million in the 2000s and added 230,000 workers overseas.
While the U.S. multinational manufacturers employ 6.9 million workers in the U.S. and 4.6 million abroad as of 2009, the trend clearly indicates the balance shifting in favor of overseas jobs at the expense of jobs in America.
The irony of it is that the vast majority of average citizens of nations like India where jobs have been created by American corporations have not benefited either. After the decade of job creation by US multi-nationals, India still remains home to the world's largest population of poor, hungry and illiterates. Bulk of the benefits of globalization have gone to a few dozen powerful Indian oligarchs in "the world's largest democracy".
Looking at this jobs data, it's clear to me that the foolish and short-sighted actions of the American MNCs are undermining the very system that has nurtured and enriched them by creating middle class American consumers and voters whose jobs they are killing.
It's the middle class America that has supported the system of American democracy and free markets; destroying middle class America by taking their jobs overseas will only lead to rising instability that will threaten the very foundations of this system....the growing "Occupy" movement across major American cities and university campuses is only the tip of the iceberg of rising discontent.
It's time to save democracy and capitalism from the American capitalists!
Related Links:
Haq's Musings
Will American Capitalism Survive?
Imran Khan Inspired by Iqbal
Occupy Wall Street Anti-Semitic?
India-World's Biggest Oligarchy
Comparing Oligarchies in India and Pakistan
Pakistan Tops South Asia Job Growth in 2000-2010
India is Home to World's Largest Population of Poor, Hungry & Illiterates
Overall, US multinational corporations added 1.5 million workers to their payrolls in Asia and the Pacific region from 1999 to 2009, and 477,500 workers in Latin America, according to US Commerce Dept data as reported by the Wall Street Journal.
From 1999 to 2009, the multinational companies also reduced capital-investment spending in the U.S. at an annual rate of 0.2% and increased it at a 4.0% annual rate abroad. This occurred in spite of huge Bush era tax cuts for the rich.
Bulk of the increase in overseas investment and hiring by U.S. multinationals has been in the service sector where most of the American middle class jobs have been lost. Among U.S. multinational firms in manufacturing, about 60% of employment is still in the U.S. But the manufacturers cut their U.S. payrolls by 2.1 million in the 2000s and added 230,000 workers overseas.
While the U.S. multinational manufacturers employ 6.9 million workers in the U.S. and 4.6 million abroad as of 2009, the trend clearly indicates the balance shifting in favor of overseas jobs at the expense of jobs in America.
The irony of it is that the vast majority of average citizens of nations like India where jobs have been created by American corporations have not benefited either. After the decade of job creation by US multi-nationals, India still remains home to the world's largest population of poor, hungry and illiterates. Bulk of the benefits of globalization have gone to a few dozen powerful Indian oligarchs in "the world's largest democracy".
Looking at this jobs data, it's clear to me that the foolish and short-sighted actions of the American MNCs are undermining the very system that has nurtured and enriched them by creating middle class American consumers and voters whose jobs they are killing.
It's the middle class America that has supported the system of American democracy and free markets; destroying middle class America by taking their jobs overseas will only lead to rising instability that will threaten the very foundations of this system....the growing "Occupy" movement across major American cities and university campuses is only the tip of the iceberg of rising discontent.
It's time to save democracy and capitalism from the American capitalists!
Related Links:
Haq's Musings
Will American Capitalism Survive?
Imran Khan Inspired by Iqbal
Occupy Wall Street Anti-Semitic?
India-World's Biggest Oligarchy
Comparing Oligarchies in India and Pakistan
Pakistan Tops South Asia Job Growth in 2000-2010
India is Home to World's Largest Population of Poor, Hungry & Illiterates
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LONDON: Growth in all four BRIC economies has surpassed expectations in the decade since the term came into existence but India's record on productivity, FDI and reform has been the most disappointing, the chairman of Goldman Sachs Asset Management Jim O'Neill said on Tuesday.
O'Neill, who coined the term, BRIC, in December 2001 to jointly describe the four biggest developing economies, Brazil, Russia, India and China, was speaking at the London leg of the Reuters 2012 Investment Outlook Summit.
"All four countries have become bigger (economies) than I said they were going to be, even Russia. However there are important structural issues about all four and as we go into the 10-year anniversary, in some ways India is the most disappointing," said O'Neill who oversees almost a trillion dollars in assets at Goldman.
Just this week, India's government caved in to opposition pressure and put on hold a landmark reform of the retail sector that was seen opening the doors to billions of dollars in foreign direct investment in the supermarket sector.
The long-awaited measure, passed earlier this month, had been hailed as ending the government's economic reform paralysis that is widely seen as the root cause of high inflation, shrinking capital inflows and a wider current account deficit.
"India has the risk of ... if they're not careful, a balance of payments crisis. They shouldn't raise people's hopes of FDI and then in a week say, 'we're only joking'," O'Neill said. "India's inability to raise its share of global FDI is very disappointing," he said.
United Nations data shows that India received less than $20 billion in FDI in the first six months of 2011, compared to more than $60 billion in China while Brazil and Russia took in $23 billion and $33 billion respectively.
The glacial reform pace has hit India's hopes for double-digit economic growth, O'Neill said, adding: "India is as bad as Russia is on governance and corruption and, in terms of use of technology, Russia is in fact much higher than India."
On the other BRICs, O'Neill said Brazil's main problem was an overvalued currency which puts the country in danger of "Dutch disease" - a term first used to describe how North Sea oil discoveries in the 1960s triggered a surge in Dutch energy exports but also in the Dutch currency, pummelling much of the country's manufacturing. China's challenge was to effectively manage a transition to a higher-consumption economy with slower growth, he said.
O'Neill remains positive on Russia but said much depends on what Prime Minister Vladimir Putin can deliver in terms of reform following an election at the weekend that left his ruling party with a much reduced parliamentary majority.
http://m.economictimes.com/news/economy/foreign-trade/india-most-disappointing-among-bric-nations-goldmans-oneill/articleshow/11008228.cms