US Job Growth (Trickling Down) Overseas

Black Swan

The top 500 US corporations are reporting profits and showing recovery in 2010, but unemployment at 9.8 percent is still at recessionary levels domestically, while US corporations increase their hiring overseas in emergent economies like China, India, and Brazil. It would appear that America's corporate growth-related jobs are trickling down overseas to a large extent, where labour is cheap, regulations less, and in general the ROI (return on investment) is greater.

The Economic Policy Institute, a Washington think tank, says American companies have created 1.4 million jobs overseas this year, compared with less than 1 million in the U.S.

I wonder how many of these US corporations benefited directly, or indirectly from the 2008-2009 taxpayer bailouts, some of these taxes coming from taxpayers that were working class, or middle class and not rich, and perhaps now unemployed, or underemployed, and not benefiting from the US corporate overseas job creation?

If you were rich, and had additional monies to invest due to the continuation of the Bush Era tax cuts, would you invest overseas (like US Corporations) where the ROI is generally greater? If so, would you more than likely register with the Republican majority that just won the US House, and negotiated with Obama to keep the Bush Era tax cuts in place, than register Democrat or Independent?

Source: http://news.yahoo.com/s/ap/20101228/ap_on_re_us/us_overseas_hiring

Denerick

Your entire reasoning is faulty. You will grow to be an unhappy and bitter person if you expect capitalists to invest in a patriotic and nationalist fashion. No, they will invest in what will make them profit. American foreign investment is a major international boon that is making the world a wealthier and hence more content place. International trade makes everyone better off in the long run, as countries specialise in producing what they produce best.

Anyway, European and Asian firms invest hundreds of billions in the US too. Its not like this is a one sided stream.

Black Swan

Denerick wrote: »

Your entire reasoning is faulty... if you expect capitalists to invest in a patriotic and nationalist fashion.

Where precisely did I state that I "expect capitalists to invest in a patriotic and nationalist fashion?" I said nothing of the sort. Rather, one of the major points in the OP was consistent with your below statement:

Denerick wrote: »

...they will invest in what will make them profit.

Do you have empirical support for the dependent outcome made about the world in the (below) statment: "...and hence more content place?"

Denerick wrote: »

American foreign investment is a major international boon that is making the world a wealthier and hence more content place.

How do you measure "more content place?" For example, would the reduction of war be one measure of the world becoming a "more content place?" If so, Will Durant in the Lessons of History would suggest otherwise. War has not been decreasing as the result of increasing world wealth. If anything, the potential for war has been increasing due to the increased global competition for scarce resources by developed and developing economies.

Denerick wrote: »

Anyway, European and Asian firms invest hundreds of billions in the US too. Its not like this is a one sided stream.

Does this include the growing problems associated with the imbalance of trade between the United States and the 2nd largest economy, the People's Republic of China? For example:

The U.S. trade deficit with China means that U.S. companies that can't compete with cheap Chinese goods must either lower their costs or go out of business. To lower their costs, many companies have started outsourcing to India and China, adding to U.S. unemployment. Other industries have simply dried up. U.S. manufacturing, as measured by the number of jobs, declined 21% between 1998 and 2008. As these industries declined, so has U.S. competitiveness in the global marketplace. (Source: US Bureau of Labor Statistics)

Takes off poster hat and puts on mod hat: Regarding the following statement, may I suggest that you address the content of the post, and not the "person?"

Denerick wrote: »

You will grow to be an unhappy and bitter person...

Overheal

Denerick wrote: »

Your entire reasoning is faulty. You will grow to be an unhappy and bitter person if you expect capitalists to invest in a patriotic and nationalist fashion.

Perhaps the politicians would also do well to remember that then, since they campaign so hard on a platform of national patriotism. Even when it comes to economic policy.