‘American’ Multinational Companies Only Loyal to Profits
The Bureau of Economic Analysis (BEA), a U.S. government organization, issued a report on the 2009 expenditures of multi-national corporations, strengthening the argument that our trade policy is bankrupting the nation.
According to the report, these businesses account for 20 percent of the workforce in this country. However, in 2009, while these companies fired almost 5 percent of their U.S. workforce, they only released a little more than 1 percent of their foreign workers. To make matters worse, they also reduced capital expenditures in this nation by 20 percent.
This report, in conjunction with others released over the past decade, document a disturbing trend of outsourcing in this country. Our “free” trade agreements have paved the way for these companies to only go where the money is, as other nations utilize protectionist measures to steal away business, wealth and jobs from the U.S.
In an obsession over profits for stockholders, companies have lobbied the government through institutions such as the U.S. Chamber of Commerce to adopt trade policy that allows them to move jobs overseas and then sell goods back to the world’s largest consumer market with no penalty. Because of this, the U.S. has run trade deficits each year uninterrupted since 1975, amounting to more than $475 billion last year alone.
Economists estimate that a nation loses 9,000 jobs for every $1 billion in trade deficits it runs. This report is proof of that statistic, as the U.S. continues to lose jobs due to bad trade policy that has caused these massive trade deficits.
This trend will continue unless action is taken to correct it. Last year, these companies derived more of their profits and sales from their overseas operations than here at home. Companies such as General Motors produced and sold more cars in China than in America. We must adopt trade policy so that American companies employ American workers to sell goods to the American people.