Dancing in the dark
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That’s reassuring, isn’t it? We’ve been throwing tax breaks at companies to encourage them to create jobs in the U.S. — when we have no way of actually knowing if they’re creating jobs here:
Some of the country’s best-known multinationals closely guard a number they don’t want anyone to know: the breakdown between their jobs here and abroad.
So secretive are these companies that they hand the figure over to government statisticians on the condition that officials will release only an aggregate number. The latest data show that multinationals cut 2.9 million jobs in the United States and added 2.4 million overseas between 2000 and 2009.
Some of the same companies that do not report their jobs breakdown, including Apple and Pfizer, are pushing lawmakers to cut their tax bills in the name of job creation in the United States.
But experts say that without details on which companies are contributing to job growth and which are not, policymakers risk flying blind as they try to jump-start the hiring of American workers.
“It’s an important piece of information that the American people should have,” said Ron Hira, an associate professor of public policy at the Rochester Institute of Technology. “Should you listen to the kind of advice these companies have about how to grow the economy when their record and their model indicates they’ve cut jobs? . . . Or should we talk to people who actually do create jobs in the United States?”
As the country faces an unemployment crisis, President Obama, lawmakers and business lobbyists have all touted the country’s biggest companies as critical to creating jobs.
The head of Obama’s jobs council, General Electric chief executive Jeff Immelt, said during a tour of a company plant in Greensboro, S.C., that firms should be ready to answer questions from the public.
“If you want to be an admired company, you better know, you better have accountability, and you better think through where the jobs are,” he said.
GE breaks out its employment numbers in company filings to the Securities and Exchange Commission. In 2010, about 46 percent of GE’s 287,000 employees worked in the United States, compared with 54 percent in 2000.
9:53 am
The big multinationals don’t give a fuck about the United States, so they shouldn’t be given a tax break. Period.
9:53 am
With all of these facts on display why is it that Obama continues to demand that the Congress pass 3 more free trade agreements? Hasn’t NAFTA shown him, and us, that free trade agreements facilitate the exodus of American jobs to foreign countries? Obama always comes up with the worst possible solution for every domestic problem. Take his extension of the payroll tax cut as another example.