History will record 2010 as the year Washington became "business friendly."
Not that it was all that unfriendly before. Some would say the bailouts of Wall Street, AIG, GM, and Chrysler were about as friendly as it can get. In addition, Washington gave windfalls to drug companies and health insurers in the new health bill, subsidies to energy companies in the stimulus package, and billions to domestic and military contractors.
But for corporate America it still wasn't friendly enough. Before the midterm elections, Verizon CEO and Business Roundtable chair Ivan Seidenberg accused the president of creating a hostile environment for investment and job-creation. In the midterms, business leaders overwhelmingly threw their support to Republicans.
So the White House caved in on the Bush tax cuts for the wealthy, and is telling CEOs it will be on their side from now on. As the president recently told a group of CEOs, the choice "is not between Democrats and Republicans. It's between America and our competitors around the world. We can win the competition."
There's only one problem. America's big businesses are less and less American. They're going abroad for sales and employees. That's one reason they've showed record-breaking profits in 2010 while creating almost no American jobs.
Consider one of most popular Christmas products of all time -- Apple's iPhone. Researchers from the Asian Development Bank Institute have dissected an iPhone whose wholesale price is around $179.00 to determine where the money actually goes.
Some shows up in Apple's profits, which are soaring.
About $61 of the $179 price goes to Japanese workers who make key iPhone components, $30 to German workers who supply other pieces, and $23 to South Korean workers who provide still others. Around $6 goes to the Chinese workers who assemble it. Most of the rest goes to workers elsewhere around the globe who make other bits.
Only about $11 of that iPhone goes to American workers, mostly researchers and designers.
Even old-tech American companies made big money abroad in 2010 -- and created scads of jobs there. General Motors, for example, is now turning a nice profit and American investors bullish about its future.
That doesn't mean GM will be creating lots more blue-collar jobs in America, though. 2010 was a banner year for GM's foreign sales -- already two-thirds of its total sales, and rising. In October, GM became first automaker to sell more than 2 million cars a year in China. The company is now making more cars in China than in the United States.And GM has just signed a deal with its Chinese partner to try to crack India's potentially huge auto market.
Meanwhile, back home in the U.S., GM has slashed its labor costs. New hires are brought in at roughly half the wages and benefits of former GM employees, under a two-tier wage structure accepted by the United Auto Workers. Almost all GM's U.S. suppliers have also cut their payrolls.
It's much the same even for America's biggest retailers. 2010 wasn't an especially good year for Walmart in the United States. Its third-quarter sales fell, as U.S. shoppers continued to hold back.
But Walmart International is contributing mightily to its bottom line. Its UK business, Asda, will be adding 7,500 new jobs next year. Walmart is also doing well in Japan and Brazil, and hiring like mad in both countries.
So when President Obama tells American CEOs our biggest challenge comes from abroad, you've got to wonder. The leaders of American business are already abroad, and doing quite nicely.
Just after the midterm elections, the President's chief economic advisor, Larry Summers, told a group of top U.S. CEOs that the election was partly a "rejection of elites... that were seen as more citizens of Davos than of their countries." American CEOs, Summers warned, should "think very hard about their obligations as citizens of this country."
Yes, they're citizens. But first and foremost they're CEOs. And CEOs have to show profits - wherever those profits come from. Under American-style capitalism, profits matter. Jobs don't.
2010 was the year Washington became even more "business friendly." The result has been more and better jobs -- but not in America.
Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.
In the fantasy land that is politics and modern-day media, assertions will be made that economics is now committing political violence. Such statements reflect ignorance and prejudice. The public sector is more important than the private sector, at least to these convoluted minds. Crass concepts such as supply and demand, limited resources, and other constraints should apply only to the hoi polloi, not the political elite.
robert shumake detroit
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robert shumake
History will record 2010 as the year Washington became "business friendly."
Not that it was all that unfriendly before. Some would say the bailouts of Wall Street, AIG, GM, and Chrysler were about as friendly as it can get. In addition, Washington gave windfalls to drug companies and health insurers in the new health bill, subsidies to energy companies in the stimulus package, and billions to domestic and military contractors.
But for corporate America it still wasn't friendly enough. Before the midterm elections, Verizon CEO and Business Roundtable chair Ivan Seidenberg accused the president of creating a hostile environment for investment and job-creation. In the midterms, business leaders overwhelmingly threw their support to Republicans.
So the White House caved in on the Bush tax cuts for the wealthy, and is telling CEOs it will be on their side from now on. As the president recently told a group of CEOs, the choice "is not between Democrats and Republicans. It's between America and our competitors around the world. We can win the competition."
There's only one problem. America's big businesses are less and less American. They're going abroad for sales and employees. That's one reason they've showed record-breaking profits in 2010 while creating almost no American jobs.
Consider one of most popular Christmas products of all time -- Apple's iPhone. Researchers from the Asian Development Bank Institute have dissected an iPhone whose wholesale price is around $179.00 to determine where the money actually goes.
Some shows up in Apple's profits, which are soaring.
About $61 of the $179 price goes to Japanese workers who make key iPhone components, $30 to German workers who supply other pieces, and $23 to South Korean workers who provide still others. Around $6 goes to the Chinese workers who assemble it. Most of the rest goes to workers elsewhere around the globe who make other bits.
Only about $11 of that iPhone goes to American workers, mostly researchers and designers.
Even old-tech American companies made big money abroad in 2010 -- and created scads of jobs there. General Motors, for example, is now turning a nice profit and American investors bullish about its future.
That doesn't mean GM will be creating lots more blue-collar jobs in America, though. 2010 was a banner year for GM's foreign sales -- already two-thirds of its total sales, and rising. In October, GM became first automaker to sell more than 2 million cars a year in China. The company is now making more cars in China than in the United States.And GM has just signed a deal with its Chinese partner to try to crack India's potentially huge auto market.
Meanwhile, back home in the U.S., GM has slashed its labor costs. New hires are brought in at roughly half the wages and benefits of former GM employees, under a two-tier wage structure accepted by the United Auto Workers. Almost all GM's U.S. suppliers have also cut their payrolls.
It's much the same even for America's biggest retailers. 2010 wasn't an especially good year for Walmart in the United States. Its third-quarter sales fell, as U.S. shoppers continued to hold back.
But Walmart International is contributing mightily to its bottom line. Its UK business, Asda, will be adding 7,500 new jobs next year. Walmart is also doing well in Japan and Brazil, and hiring like mad in both countries.
So when President Obama tells American CEOs our biggest challenge comes from abroad, you've got to wonder. The leaders of American business are already abroad, and doing quite nicely.
Just after the midterm elections, the President's chief economic advisor, Larry Summers, told a group of top U.S. CEOs that the election was partly a "rejection of elites... that were seen as more citizens of Davos than of their countries." American CEOs, Summers warned, should "think very hard about their obligations as citizens of this country."
Yes, they're citizens. But first and foremost they're CEOs. And CEOs have to show profits - wherever those profits come from. Under American-style capitalism, profits matter. Jobs don't.
2010 was the year Washington became even more "business friendly." The result has been more and better jobs -- but not in America.
Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.
In the fantasy land that is politics and modern-day media, assertions will be made that economics is now committing political violence. Such statements reflect ignorance and prejudice. The public sector is more important than the private sector, at least to these convoluted minds. Crass concepts such as supply and demand, limited resources, and other constraints should apply only to the hoi polloi, not the political elite.
robert shumake detroit
robert shumake
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South Korea is suffering its worst-ever outbreak of foot-and-mouth disease, with the highly contagious virus spreading to farms across the country despite a nationwide quarantine effort.
John Roberts switches to FOX <b>News</b> | Inside TV | EW.com
John Roberts, the veteran newsman who co-hosted CNN's American Morning for three years, is joining the competition. “We are excited to welcome Jo...
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robert shumake
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South Korea is suffering its worst-ever outbreak of foot-and-mouth disease, with the highly contagious virus spreading to farms across the country despite a nationwide quarantine effort.
John Roberts switches to FOX <b>News</b> | Inside TV | EW.com
John Roberts, the veteran newsman who co-hosted CNN's American Morning for three years, is joining the competition. “We are excited to welcome Jo...
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robert shumake
Making money is all about beating out the competition. It is about resources, old fashion battle and winning the spoils of conflict. Business men and woman are all in competition with each other to earn people's business and then earn their money. Since they are all in competition with each other there must be both losers and winners.
Not much has changed in last few hundred years except people's access to wealth. In feudal times the peasantry could not become nobility no matter how much they worked. They were confined to their station in life. As society changed and the caste system was replaced by democracy, these peasants are now in direct competition with the old ruling class.
However, even in today's world not all people have the same access to wealth. For example the top 10% of the country has access to somewhere around 80% of the countries wealth. They have the education, the money and own the means of production. Thus they can invest their money in a business and receive greater returns.
It is very true that even today's middle class has the opportunity to start their own business. Yet if they are willing to invest $20,000, which is a large sum for this class, they are lucky to earn $200 a month. Certainly, this small sum is not enough to live off of. The upper class can invest 2 million and can therefore live comfortably off of the $20,000 a month return they receive. Money begets more money.
It can also be said that the upper class also has access to other people who own the means of production. They can find investors, get strong connections in various industries, and can get good job opportunities. The middle class doesn't always have this level of social networking to effectively pull off a campaign to earn large amounts of wealth.
Education is also a huge factor in the type of jobs and money people earn. If you were born into a wealthy family there is a good chance you can go on to get whatever degree you desire from almost any university you want. All of this education is paid for by the child's wealthy parents. The middle class must accrue tens of thousands of dollars of loans in order to receive such a high income.
The next time you wonder why you are not wealthy remember that you may be starting out in a station in life that is conducive to wealth building. It doesn't mean you can't become rich but it does mean you are going to have to make up for these deficiencies somehow. Success will require a lot more energy, thought and time than it would for the upper class. Thus, only a few are able to break through the middle class barriers.
robert shumake
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South Korea is suffering its worst-ever outbreak of foot-and-mouth disease, with the highly contagious virus spreading to farms across the country despite a nationwide quarantine effort.
John Roberts switches to FOX <b>News</b> | Inside TV | EW.com
John Roberts, the veteran newsman who co-hosted CNN's American Morning for three years, is joining the competition. “We are excited to welcome Jo...
Pink Floyd Re-Signs With EMI: Good <b>News</b> for the Band or the Label?
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robert shumake
robert shumake detroit
History will record 2010 as the year Washington became "business friendly."
Not that it was all that unfriendly before. Some would say the bailouts of Wall Street, AIG, GM, and Chrysler were about as friendly as it can get. In addition, Washington gave windfalls to drug companies and health insurers in the new health bill, subsidies to energy companies in the stimulus package, and billions to domestic and military contractors.
But for corporate America it still wasn't friendly enough. Before the midterm elections, Verizon CEO and Business Roundtable chair Ivan Seidenberg accused the president of creating a hostile environment for investment and job-creation. In the midterms, business leaders overwhelmingly threw their support to Republicans.
So the White House caved in on the Bush tax cuts for the wealthy, and is telling CEOs it will be on their side from now on. As the president recently told a group of CEOs, the choice "is not between Democrats and Republicans. It's between America and our competitors around the world. We can win the competition."
There's only one problem. America's big businesses are less and less American. They're going abroad for sales and employees. That's one reason they've showed record-breaking profits in 2010 while creating almost no American jobs.
Consider one of most popular Christmas products of all time -- Apple's iPhone. Researchers from the Asian Development Bank Institute have dissected an iPhone whose wholesale price is around $179.00 to determine where the money actually goes.
Some shows up in Apple's profits, which are soaring.
About $61 of the $179 price goes to Japanese workers who make key iPhone components, $30 to German workers who supply other pieces, and $23 to South Korean workers who provide still others. Around $6 goes to the Chinese workers who assemble it. Most of the rest goes to workers elsewhere around the globe who make other bits.
Only about $11 of that iPhone goes to American workers, mostly researchers and designers.
Even old-tech American companies made big money abroad in 2010 -- and created scads of jobs there. General Motors, for example, is now turning a nice profit and American investors bullish about its future.
That doesn't mean GM will be creating lots more blue-collar jobs in America, though. 2010 was a banner year for GM's foreign sales -- already two-thirds of its total sales, and rising. In October, GM became first automaker to sell more than 2 million cars a year in China. The company is now making more cars in China than in the United States.And GM has just signed a deal with its Chinese partner to try to crack India's potentially huge auto market.
Meanwhile, back home in the U.S., GM has slashed its labor costs. New hires are brought in at roughly half the wages and benefits of former GM employees, under a two-tier wage structure accepted by the United Auto Workers. Almost all GM's U.S. suppliers have also cut their payrolls.
It's much the same even for America's biggest retailers. 2010 wasn't an especially good year for Walmart in the United States. Its third-quarter sales fell, as U.S. shoppers continued to hold back.
But Walmart International is contributing mightily to its bottom line. Its UK business, Asda, will be adding 7,500 new jobs next year. Walmart is also doing well in Japan and Brazil, and hiring like mad in both countries.
So when President Obama tells American CEOs our biggest challenge comes from abroad, you've got to wonder. The leaders of American business are already abroad, and doing quite nicely.
Just after the midterm elections, the President's chief economic advisor, Larry Summers, told a group of top U.S. CEOs that the election was partly a "rejection of elites... that were seen as more citizens of Davos than of their countries." American CEOs, Summers warned, should "think very hard about their obligations as citizens of this country."
Yes, they're citizens. But first and foremost they're CEOs. And CEOs have to show profits - wherever those profits come from. Under American-style capitalism, profits matter. Jobs don't.
2010 was the year Washington became even more "business friendly." The result has been more and better jobs -- but not in America.
Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.
In the fantasy land that is politics and modern-day media, assertions will be made that economics is now committing political violence. Such statements reflect ignorance and prejudice. The public sector is more important than the private sector, at least to these convoluted minds. Crass concepts such as supply and demand, limited resources, and other constraints should apply only to the hoi polloi, not the political elite.
robert shumake
Foot-and-Mouth Outbreak Spreads Through South Korea - AOL <b>News</b>
South Korea is suffering its worst-ever outbreak of foot-and-mouth disease, with the highly contagious virus spreading to farms across the country despite a nationwide quarantine effort.
John Roberts switches to FOX <b>News</b> | Inside TV | EW.com
John Roberts, the veteran newsman who co-hosted CNN's American Morning for three years, is joining the competition. “We are excited to welcome Jo...
Pink Floyd Re-Signs With EMI: Good <b>News</b> for the Band or the Label?
Progressive rock legends Pink Floyd have re-signed with their longtime record label EMI.
robert shumake detroit
robert shumake detroit
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