American businesses posted the largest profits ever – and moved our jobs to China!
By louisehartmann
Between July and September this year – American businesses posted the largest profits ever – nearly 1.7 trillion dollars! Never have US companies been so profitable in the history of this country. In fact – this this is part of a steady trend that started when worker salaries began to flatten out with Reaganomics. Most recently, corporations have seen their profits steadily increase every quarter since 2009 – and then they went through the roof the last few months. Yet what have we seen in the labor market? Nothing. In fact – as businesses started making profits again last year – job losses continued. And now – even as we are seeing record-breaking CEO and stockholder profits – job growth is anemic. Why is that? Reagan told us that hiring would start when companies and their rich stockholders and CEOs started making profits again, and they used those profits to hire employees. That’s how trickle-down economics says a labor market recovers from a recession. But Reaganomics - which we're still following after thirty failed years - is a crock. What makes economies recover is when workers have money in their pockets to buy things. Combine that with trade policies that keep manufacturing here in the US, and you have an economy. People buy things, that creates demand for products, which makes factories hire, which gives workers more paychecks. But after 30 years of Reagan/Clinton/Tom Friedman trade policy insanity, that chain has been broken and the factories - and thus the jobs - are now in China. 2 years ago – we all bailed out CEOs with taxpayer money – saving their butts – now those same CEO’s are taking that money and running to China and India to build more factories. Oh – and they want a tax cut too. When are we going to realize our nation's relationship with corporate CEOs in no longer mutually beneficial? - Now it's simply parasitic.
Comments
#2
American CEO's have been gaming the Corporate Board of Directors on compensation for a few decades now. The Coprorate Board of Directors hires a expert consutant to recommend executive compensation and more often than not those consultants are recommended by the "CEO's".
Don't recommend a big compensation package, don't get a job next year!
#3
I've learned that you can share the truth and facts with conservative Republicans and they won't listen, won't hear the facts, always dodge the truth and never, never, never will agree that Reagan's trickle down economics has been the biggest failure to this countries people. Their minds are closed. I say, " Look at the last 10 years with the giant Bush tax cuts. We gave 66% or $.66 cents of the Bush tax cuts to the top 2%. The top 2% are our large companies who are supposed to use profits and tax cuts to grow their businesses. And they did, but not here, in cheap labor countries. We borrowed from China for the Bush tax cuts, the taxpayers (mainly middle class) will pay for the tax cuts, Republicans gave 66% to the top 2% and they made China's economy better by creating jobs in China." As soon as you says this to a Conservative, it's like you never even said it. It's uncomprehensible to their minds. All they've learned from the likes of FOX notNEWS, Breitbart, Rush and Beck to defend this statement is, "Just look who was in charge during the last 2 years of the Bush presidency?" Ok, so here's the facts that they still can't understand, it's too mind numbing. Even though the House had majority in 2006-2008, it doesn't mean nothing. The Senate was still controlled by the Republicans and if they don't like the Dems House bills, the Sen. Republicans just vote NO. And even though Dems had a majority in the House and Senate in 2008-2010, it doesn't mean much when the Senate needs 61 votes to pass a House Bill. So unless both Houses have a super majority (esp in Sen. with over 61 members on one party), bills mean nothing.....w/o compromise. And all the compromises the Republicans want are to give, give, give more to coorporations and the top 2% who have done what? Nothing for us.
So it doesn't matter that the House Dems were in control. Another thing that really surprises me is, most Conservative/Republican states are of a poorer income. Median income under $40k. I don't understand why these Americans in the rural U.S. are so stupid. Sorry, I'm calling it like I see it. Maybe stupid isn't the correct word, shall I say, these Americans are "easily minipulated" into thinking the separation of church and state is going to help them, because they're in the "bible belt", but in fact, the church has been a huge wedge between helping the people and big coorporations helping themselves. The "Bible belt" people vote against politicians who are "pro-choice" and a few other issue's that hold back America in moving forward. And yes, God can move forward. If a politician came out and said, "I'm Pro-abortion!", I wouldn't vote for him, not many would. How many people say they are "pro-abortion"? None. Pro-choice isn't pro-abortion, it's only letting God work in our lives. Free-will should never be put in a law. It would be like a politician saying you had to beleive in God and that there should be a law to make people follow God or be punished. God doesn't want us to be forced into making moral decisions, He wants us to find Him for answers. To be man or woman enough to say, "I'm sorry", " I messed up", "Forgive me" from the heart means more than voting in a politician who is pro-choice. Laws can't confess away our sins. And I think so many of the rural American's really want to believe, that if they continue to put so-call bible believing politicians into office, these politicians will actually care about them and their needs. But these politicians only care about the money and the power. And maybe, just maybe, this is why these states are so poor. Because the politicians they elect grow businesses that out-source and could care less about the people in the state. They are poor and that's exactly how the Republicans want them....poor and willing to work for nothing. Cheap labor and uneducated.
Sometimes I wish the Dems would do unto the Republicans and filibuster everything over the next 2 years to shut down the Republicans, but by doing so, is turning your back on the people. And I don't think the Democratic members are below the Republicans in doing this. Time will tell. But I almost wish they would do away, forever!!!!, the 60 vote rule. There's 100 members in the Senate and the voting should 51 votes wins. It's a no brainer. This is why people vote for a majority, to get 51 votes, not 61.
#4
I'll be a worm ridden corpse long before the rich aren't worshiped in this joke of a country.
#5
Until progressives start playing the long game, they will be but the Greek chorus to the unfolding generational usurpation of America’s democratic promise. Answer? Recognize that the tidal transnational corporate takeover of American politics via radical-right constitutional revisionism will only be turned by constitutional amendment--amendment which will require as many as decades of popular consciousness foundation building (think Luntz, think the twenty year "death tax" long game of the billionaires) Perhaps the answer is below. This constitutional amendment which be the gradual, inexorable undoing of the castle moot erected by the Roberts, Scalia gang surrounding corporate civil rights, and political corruption (excuse me, spending) as protected constitutional rights. It may be twenty or thirty years before we (briefly) have a Democratic supermajority necessary to forward it to the states. Now is the time to roll up our sleeves and get to work. …Or, keep reacting, thinking two years out, and grab some popcorn and keep watching the slow motion train wreck.
(What NEEDS TO BE) The next Amendment to the U.S. Constitution:
“Only a mortal human being shall have any constitutional right, privilege or immunity of a person, citizen, or part of the people.
Each citizen's voice being equal notwithstanding wealth, the Congress and several states shall regulate political gifts and spending to discourage corruption and the undue influence of wealth upon elected representatives.” [nextamendment.us]
#6
I guess it will take a people's revolution. And we ain't gonna settle for no cake!
#7
Simple and concise Thom. Just a perfect presentation on the economic
realities we live in. I just don't understand how people are so blind not
to comprehend it at all. They all are blinded by some conservative
jargon or something.
I just read the latest book by a recent guest of yours Ravi Batra on the " New
Golden Age ". Scary to think he wrote that just before the economic crumble
in 2008. He also supports what you are saying right down to the penny.
God bless you and keep up the good work. Love the show Thom.
#8
pdvossen here's something I scribbled down a while back that I think answers your question. I've spent enough time arguing with conservatives that I think I have found the definitive answer:
There are two basic ways that people can process information. The first is what you might call the "scientific method". You gather facts and form conclusions. When new information becomes available that conflicts with your conclusions you draw new conclusions to include the conflicting information. This is called "learning".
The second is what I refer to as "faith based" information processing. You start with the conclusions. Generally they are accepted in whole cloth from an authority figure and they are NEVER to be questioned. When new information becomes available that conflicts with that belief system you simply reject the information. That makes learning IMPOSSIBLE. But it protects the belief system. Otherwise the belief system could not stand since it conflicts with reality. The more factual information that is rejected the further one's world view gets from reality. At some point the views are so divergent from the real world that the person becomes certifiably insane.
The reason liberals and conservatives conflict is because they operate in different modes. When "faith based" information processing is challenged with facts and reality it protects itself by getting angry. People cannot think when they are angry. Thus the cycle continues.
#9
This one is directed to the original question:
There IS no solution. The way the deck is stacked right now with weak Democrats who keep moving towards the center (which used to be called the far right) and ignorant Republicans who keep selling out their country for campaign donations, a news media which has been bought up and consolidated by a few Republican owned conglomerates, and a Republican appointed court system (including a Supreme Court that allows unlimited funding of political campaigns from anonymous donors) there will NEVER be a solution.
Its like the movie "Independence Day" when Jeff Goldblum figures out that the aliens have positioned all their ships for an annihilation attack. Except that was a movie. F14s (or whatever they were ) probably can't defeat interstellar technology. And we probably can't defeat the "artificial lifeforms" that plague us. The trap has been set. Its over.
Conclusion: This country is done. Its in a downward spiral and it won't stop until we're just like Mexico. In 20 years you'll be telling your grandkids about the days when unemployment was only about 10% and people didn't have to be rich to own their own homes or go to college. That's the bad news.
The good news is that America has fulfilled its place in history. It provided the basis from which other countries could learn. Other nations have seen our example and learned from our mistakes. And they will pick up the baton that we dropped. The world will move forward without us. But the US is destined to become a 3rd world nation. Conservatism has destroyed us. At least for the rest of my life.
#10
"When are we going to realize our nation's relationship with corporate CEOs in no longer mutually beneficial?"
This is such a daunting question, one that is not easily answered. I believe it will involve generations of re-educating ourselves and our children about what is important in society, that our focus should not be on our own personal success, greed, and wealth but on the successes of our country or the "collective" and its economic health for all. We need to re-learn the tenants of all organized religions that is better to give than receive and take care of each other. But before we can do that we need to learn how to recapture the ability to deliver the message and counter the invective from the right.
#11
With manufacturing being moved to China and with American consumerism ( Wall Mart, Target , etc. ) being such a critical factor in that, and you add in the current problem with Korea, one has to wonder how China will chime in. I can't see as how the US consumer can continue to afford to prop up Wall Mart Street if Korea blows up on top of everything else. What will it take from China to persuade Kim Jong Ill to put his toys back in the box ?
#12
Our nation's liberty is in jeapordy as never before since Hitler.
The dictatorship of China has us over a barrel with over 2 trillion
of our dollars that they can use to blackmail us. Large (supposedly)
loyal American companies with factories in China making record profits
that have shown absolutely no loyalty to American workers. A President
that has no kohonies when it comes to designing the trade agreements (ie.
GAT, NAFTA etc.), and enacting strong trade tariffs. We need trade tariffs
now not later. I understand why the President doesn't enact powerful
trade tariffs because the Chineese dictatorship would revolt by flooding
the world with dollars causing extreme inflation in the USA. I say
go ahead, bring it on (as Bush would say). We could simply enact a new
paper money making all old money outdated, and print new money only good
in free countries eliminating China, and others.
#13
Louise,
I agree with everything you have written in your blog. Because of the disconnect with Congress and the people, we have depended on Obahma to take the lead in rectifying this inbalance. However, he is too congenial, or is getting poor advice from his "experts." Even the polls and media seem to be giving a false picture of what is going on with the countries economics.
Because companies are making such vast profits without helping workers, both working and unemployment, it appears that our leaders must find a way to legislate some ways to level the playing field so that the poor and middle class are not at the mercy of corporations. If money is power we are headed for a feudal monarch. The monarchs are corporation administrators with facist ideals. How rich do you have to be before you develope some compassion for others? Also, if the inheiratance laws are reformed, we can only hope that there will be less insentive to amass unlimited wealth before the "monarchs" meet their maker.
We must do a much better job of informing the press and others of the truths that plague us. I am obviously an optimist. There must be a way to win this battle.
Eric Anderson Southfield, MI
#14
Louise,
I agree with everything you have written in your blog. Because of the disconnect with Congress and the people, we have depended on Obahma to take the lead in rectifying this inbalance. However, he is too congenial, or is getting poor advice from his "experts." Even the polls and media seem to be giving a false picture of what is going on with the Countries economics.
Because companies are making such vast profits without helping workers, both working and unemployment, it appears that our leaders must find a way to legislate some ways to level the playing field so that the poor and middle class are not at the mercy of corporations. If money is power we are headed for a feudal monarchy. The monarchs are corporations with facist ideals. How rich do you have to be before you develope some compassion for others? Also, if the inheiratance laws are reformed, we can only hope that there will be less insentive to amass unlimited wealth before the "monarchs" meet their maker.
We have to do a better job of communicating to the press and others the reality of the ecomic picrure in ways that they understand. I am, obviously, an optimist. I know of no other way than to plott a plan to win. Giving up is not an option. Even corporations will fail when nobody can afford their products.
Eric Anderson Southfield, MI
#15
A successful, contemporary example of what we need to look at is BRAZIL! The costs of doing business in Brazil are higher than any other Latin American country, but they have experienced continual growth during this past decade. The Conservatives like to talk about Greece, but they choose to ignore Brazil because it has been led by Lula (and now his recently-elected successor), a socialist of the Workers Party (Partido do Trabalhadores). Brazil protects their industries and espouses policies which encourage manufacturing and assembly in Brazil. As a matter of fact, if a manufacturer from China, India or any other country with whom they do NOT have a treaty (e.g. MERCOSUR), wants to sell their products in Brazil, they face stiff importation tariffs. The Brazilian market is large enough (200 million people) for those tariffs to encourage investment in assembly and manufacturing. The US is the largest consumer market in the World... I think we could use some Brazilian-inspired protectionist policies!
#16
I suggest we work at ways to keep our dollars in our country. One suggestion I have is to set a national price of $2 gallon for E-85 fuel. It would save struggling Americans a lot of money and help bring jobs back to this country. The current price for e-85 should be $ 2.40, but states don't enforce the price and retailers charge a much higher price, close to what regular unleaded is. E-85 burns more fuel and gets about 20 percent less milege. However, at 2$, it would cost $1 less per gallon and you could pay $30 for 15 gallons of gas instead of 45. A hefty savings that most americans with e-85 capatible cars would take advantage of. It would help farmers, ethanol producers, fuel pump manufacturers, and create additional jobs in these sectors all while reducing our dependence on foriegn oil. The added cost in subsidies would be offset by the economic benefits and would be a win-win for Democrats and Obama.
#17
We'll realize how dysfuntional this relx with CEOs is when we have soup lines as in the Great Depression. In the meantime, it'll probably take 2 election cycles to get rid of corporatist presidents and elect one who isn't -- maybe Marcy Kaptur or Alan Grayson. Maybe ranked choice voting would help -- a 3rd party candidate might take enough votes from both major parties with it. I heard someone on MSNBC recently suggest that one simple measure would be a starting place: require tax cut recipients to use the tax breaks to hire employees. I would also suggest that any corporate-friendly legislation be tied to tougher regulation, enforcement, and reigning in of abusive practices. Btw, it might help if the corporate media told its listeners the real story instead of the sugar coated one.
#18
Here's what cartoonist Toles thought of Reagan's time in office:
http://gizmology.com/ReaganTermedOut.jpg
(I don't think I can post pictures on this blog, so please follow the link...)
73, Garitron
#19
The process is continuous and accelerating perhaps? This article announces the prospective purchase of Teledyne/Continental Motors by a Chinese government owned company. Teledyne is the compay that produces engines and replacement parts for general aviation aircraft. The prospective purchasers have "committed" to keeping the plant in the U.S.
(This may be of interest to Thom since I believe he also is a licensed pilot).
http://www.avweb.com/avwebflash/news/TeledyneContinentalMotors_SoldToTec...
Reimpose tariffs.
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Oh, it's trickle down alright...
but what they don't want you to know is that what is trickling down is piss. They're pissing on us, that's for sure. And when someone at work put pictures of GW Bush in the Urinals...the caption was "Go ahead, they're pissing on you!", I oblige...too bad it's only symbolic!