If you turn on your television during any economic debate you will hear a talking head at some point say that tax breaks for the wealthy aka “the job creators” will in fact create jobs. This is absolutely true, unfortunately the jobs being created are not in the U.S. Ex-President George “dubya” Bush enacted significant tax cuts pretty much from the beginning of his first term in office, yet they had no effect in slowing down the massive spike in job outsourcing that started in the early 2000s. As a matter fact, the Bush Administration actually defended outsourcing of American jobs as a good thing. According to the Wall Street Journal, U.S. multinational corporations cut their work forces, since the start of the 2000s, in the U.S. by 2.9 million while increasing employment overseas by 2.4 million. Huge tax cuts and outsourcing of jobs do wonders for a corporations profit margin but very little for the average American looking for work.
Corporations response to the economic downturn? More outsourcing of course. In 2009 many top executives attended the “2009 Strategic Outsourcing Conference“. More than 70 of these executives answered a poll about how their companies responded to the countries economic problems. Below is a pie chart based on their answers.
While so called pundits and some so called leaders in Washington claim that we must lower the tax burden on the “job creators” to turn the economy around, corporations continue to move jobs overseas, avoid paying the already historically low tax rates as they are and rake in record levels of cash.
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