American Multi-nationals Moved 1.5 Million US Jobs to India and China
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!
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