Thursday, July 27, 2006
Good New Book Out There
Senator Byron Dorgan from North Dakota wrote a new book called "Take This Job and Ship It" about outsourcing. Here is a little review of the book:
"Moving jobs to China and running profits through the Cayman Islands to avoid taxes undermines American workers and threatens out future" - so begins Senator Dorgan's "Take This Job and Ship It." Our trade deficit now increases by $2 billion/day, and our total deficit (federal government and trade) is $1.2 trillion/year.
In 1970 the biggest U.S. corporation was G.M. - for most employees, it was a ticket to lifetime employment, and for all it provided good wages, pensions, and health care. Today it is Wal-Mart, with an average salary of $18,000, 70% turnover the first year, and large numbers without benefits. About three million have already lost their jobs to out-sourcing, and Alan Blinder, former vice chairman of the Federal Reserve Board estimates 42-56 million jobs could be sent abroad, while many of those remaining will be competing with those paid much less in foreign lands.
Dorgan goes on to assert that about 750,000 U.S. jobs have been lost via NAFTA, and the three largest imports from Mexico are autos, auto parts, and electronic - displacing high-skilled American jobs, contrary to pre-implementation projections. Even Fig Newtons are now imported from Mexico. We have gone from a $1.3 billion surplus with Mexico in 1994 to a $45 billion deficit. Meanwhile, the U.S. poverty rate increased for the fourth straight year (to 12.7%) in 2005.
The problem is no longer limited to blue-collar workers. Senior software engineer salaries have been driven down by outsourcing from $130,000 to $100,000 in a few years (IF one is still employed). Airline maintenance has also been exported.
Meanwhile, while corporations make record profits through outsourcing, their tax payments dwindle. From 1945 to 2000 the share of income taxes paid by corporations dropped from 35% to 10%. Companies that move jobs overseas can reinvest those profits there and pay no U.S. income taxes; or, they can repatriate the money and pay only 5.25% federal tax. (To be fair, they probably had also already paid local taxes, but these usually are less than in the U.S.)"
If you are intersted in the book - go to this link at powells.com (Amazon busted an organizing drive by CWA a few years back - so I never use them.) While Powells bookstore is union:
http://www.powells.com/biblio/1-031235522x-1
What other books are YOU reading.
"Moving jobs to China and running profits through the Cayman Islands to avoid taxes undermines American workers and threatens out future" - so begins Senator Dorgan's "Take This Job and Ship It." Our trade deficit now increases by $2 billion/day, and our total deficit (federal government and trade) is $1.2 trillion/year.
In 1970 the biggest U.S. corporation was G.M. - for most employees, it was a ticket to lifetime employment, and for all it provided good wages, pensions, and health care. Today it is Wal-Mart, with an average salary of $18,000, 70% turnover the first year, and large numbers without benefits. About three million have already lost their jobs to out-sourcing, and Alan Blinder, former vice chairman of the Federal Reserve Board estimates 42-56 million jobs could be sent abroad, while many of those remaining will be competing with those paid much less in foreign lands.
Dorgan goes on to assert that about 750,000 U.S. jobs have been lost via NAFTA, and the three largest imports from Mexico are autos, auto parts, and electronic - displacing high-skilled American jobs, contrary to pre-implementation projections. Even Fig Newtons are now imported from Mexico. We have gone from a $1.3 billion surplus with Mexico in 1994 to a $45 billion deficit. Meanwhile, the U.S. poverty rate increased for the fourth straight year (to 12.7%) in 2005.
The problem is no longer limited to blue-collar workers. Senior software engineer salaries have been driven down by outsourcing from $130,000 to $100,000 in a few years (IF one is still employed). Airline maintenance has also been exported.
Meanwhile, while corporations make record profits through outsourcing, their tax payments dwindle. From 1945 to 2000 the share of income taxes paid by corporations dropped from 35% to 10%. Companies that move jobs overseas can reinvest those profits there and pay no U.S. income taxes; or, they can repatriate the money and pay only 5.25% federal tax. (To be fair, they probably had also already paid local taxes, but these usually are less than in the U.S.)"
If you are intersted in the book - go to this link at powells.com (Amazon busted an organizing drive by CWA a few years back - so I never use them.) While Powells bookstore is union:
http://www.powells.com/biblio/1-031235522x-1
What other books are YOU reading.
