bureaucracybusters

THE EMPLOYER IS THE ENEMY: PART TWO (OF SEVEN)

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on February 22, 2022 at 12:10 am

Niccolo Machiavelli, the father of modern politics, warns in his masterwork, The Discourses

All those who have written upon civil institutions demonstrate…that whoever desires to found a state and give it laws, must start with assuming that all men are bad and ever ready to display their vicious nature, whenever they may find occasion for it.

If their evil disposition remains concealed for a time, it must be attributed to some unknown reason; and we must assume that it lacked occasion to show itself. But time, which has been said to be the father of all truth, does not fail to bring it to light.

Niccolo Machiavelli

Where the crimes of corporate employers are concerned, we do not have to wait for their evil disposition to reveal itself. It has been fully revealed for decades. We need only find the courage to redress the costly outrages we see every day in the workplace.

In its June 8, 2011 cover-story on “What U.S. Economic Recovery? Five Destructive Myths,” Time magazine warned that profit-seeking corporations can’t be relied on to ”make it all better.”

Click here: What U.S. Economic Recovery? Five Destructive Myths – TIME

Wrote Rana Foroohar, then Time‘s assistant managing editor in charge of economics and business:

American companies “are doing quite well,” but most American workers “are earning a lower hourly wage now than they did during the recession.”

Corporations, in short, are doing extremely well. But they don’t spend their profits on American workers.

“There may be $2 trillion sitting on the balance sheets of American corporations globally, but firms show no signs of wanting to spend it in order to hire workers at home.”

In short:  Giving even greater tax breaks to mega-corporations—the standard Republican mantra—will not persuade them to stop “outsourcing” jobs. Nor will it convince them to start hiring Americans.

While embarrassingly overpaid CEOs squander corporate wealth on themselves, millions of Americans can’t afford medical care or must depend on charity to feed their families.

Yet there is also a disconnect between the truth of this situation and the willingness of Americans to face up to that truth.

According to Foroohar:

  • Republicans have convinced most Americans they can revitalize the economy by slashing “taxes on the wealthy and on cash-hoarding corporations while cutting benefits for millions of Americans.” 
  • To restore prosperity, America will need both tax increases and cuts in entitlement programs.

In November, 2017, President Donald Trump and a Republican-dominated House and Senate rammed the Tax Cuts and Jobs Act of 2017 through Congress. It became law on December 22, 2017.

Official White House presidential portrait. Head shot of Trump smiling in front of the U.S. flag, wearing a dark blue suit jacket with American flag lapel pin, white shirt, and light blue necktie.

Donald Trump

According to Chye-Ching Huang, director of the Tax Law Center at New York University School of Law, the legislation did nothing to help ordinary Americans.

Testifying before the House Budget Committee on February 27, 2019, Huang stated that the law:

  • Ignored the stagnation of working-class wages and exacerbated inequality;
  • Weakened revenues when the nation needed to raise more;  
  • Encouraged rampant tax avoidance and gaming that will undermine the integrity of the tax code; 
  • Left behind low- and moderate-income Americans—and in many ways hurt them.

For American corporations, however, the law was a godsend: 

  • Cutting the corporate tax rate from 35% to 21%;
  • Shifting toward a territorial tax system, where multinational corporations’ foreign profits go largely untaxed;
  • Benefitting overwhelmingly wealthy shareholders and highly paid executives.

Despite all these giveaways, it didn’t encourage those corporations to hire willing-to-work Americans.

For an ever-expanding number of corporations, “outsourcing” is the received religion.

According to a February 9, 2022 article on the website Fortunly

  • About 300,000 jobs get outsourced out of the United States each year.
  • Almost 54% of all companies use third-party support teams to connect with customers.
  • There are 59 million freelance workers in the United States.
  • About 71% of financial service executives outsource some of their services.
  • About 51% of technology executives say they outsource application and software maintenance, and 40% outsource their data centers.

Among those companies who have replaced American workers with foreign ones:

  1. Facebook
  2. Google
  3. IBM
  4. Nike
  5. Hewlett-Packard
  6. Unitedhealth Group
  7. American Express
  8. Wells Fargo
  9. LinkedIn
  10. The Coca-Cola Company

The most commonly “outsourced” jobs are:

  1. Manufacturing
  2. Accounting
  3. Web design and development
  4. Data entry
  5. Payroll 
  6. Writer 
  7. Marketing
  8. Tax preparring
  9. Human resources
  10. Medical transcription
  11. Customer support
  12. Information Technology

There are several reasons why CEOs love outsourcing.

  1. They can throw higher-paid American workers into the street and hire lower-skilled foreign workers at “coolie wages.” 
  2. The CEOs can then pocket much of those “savings.”
  3. They can avoid stricter American laws protecting employees against such abuses as racial discrimination and unhealthy/dangerous conditions.

Thus, millions of Americans remain unemployed—or trapped in part-time, no-benefits jobs far below their levels of education and experience.

The most sinister reason for this: The refusal of Congressional Republicans to create job opportunities for their fellow Americans.

When Republicans hold the White House, they bluntly side with corporations—as they did with the Tax Cuts and Jobs Act of 2017. And when they don’t hold the Presidency, they refuse to do anything that might make a Democratic President look good.

As United States Senator Bernie Sanders said on the June 12, 2012 edition of “The Rachel Maddow Show”: “If it’s good for America, if it creates jobs, if it’s good for Barack Obama, we can’t do it.”

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