This section of the globe could be to show that we are a long way from the population center of the Earth.
Or, it could be showing those places that don’t care who wins the Stanley Cup (oops, I left out Nashville) or the NBA Championship, or whether Senator Nelson is looking out for Warren Buffet’s profits, or who the next Senator from Florida will be, or if Sarah Palin has read all of the newspapers, or if Dick Cheney has shot any friends in the face (who knew he had any).
Then again, it could be a map showing where all of our jobs have gone.
The first George Bush tried to give us NAFTA. Bill Clinton succeeded. Do you remember the promises, the promised benefits? There were too many to remember them all. Have you been enjoying them? Free trade has its benefits. It’s just that we don’t get them.
The promises made on behalf of “Free Trade” sounded nice. But, what are the results? China ships us $50 billion worth of computers and associated equipment. We ship them $8 billion worth of waste paper and scrap metal. Okay, who’s ahead, so far?
All the laid-off factory worker has to do is be retrained as an engineer and move from Akron to California, where schools for his kids are closing, the government is scaling back or closing down every service they can find, where earthquakes have dropped to the bottom of citizens’ worry lists.
The alternatives are flipping burgers, being a Walmart greeter, if you are old enough, or moving to Bangladesh. They did promise jobs, didn’t they?
Well, productivity has increased. The only problem there with the way it is calculated.
First, pay has not kept up with productivity as it is supposed to. That’s the theory. Or, at least that’s the song they sing to lure you into believing the American Dream is just around the corner (where you can’t see it).
The more output of widgets you have given an established amount of man-hours, the greater the productivity. Say you work on an auto assembly line. The engine was assembled abroad. So was the transmission. And the radio, the axle and transaxle, the electronic panel.
That factory is producing more cars with fewer American workers, so productivity is up. Wow! We won.
Another way of calculating productivity is one the corporations prefer not to emphasize to the general public. How much does it cost to produce a widget? Figuring in the 75-cent per hour cost of a child from China or Thailand brings the total labor cost down a little bit. Once again, productivity is up. Rejoice!
We get to indulge in fake lower prices at Walmart, if we have a job. The corporations have a prettier bottom line, so the executives can pay themselves that extra $5 million bonus. This keeps the executives relatively quiet when they see their luckier brethren on Wall Street getting half a billion a year.
Exxon had $37 billion in earnings last year, without having to pay any corporate tax in this country. Of course, many of their former employees didn’t have to pay any income tax either. We should give Exxon a pass though. They haven’t had any monumental accidents since their eponymous tanker Valdez dripped a bit into one of our major fishing areas. We know they learned their lesson because some day they will pay for all of the damage . . . oops, I forgot that the courts let them off the hook.
Well, anyway, enjoy the benefits of “Free Trade,” since some of you have a lot of spare time to do so.

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{ 9 comments }
This is a superb post and may be one that you should followed up to see what the results are
A partner e-mailed this link the other day and I am desperately anticipating your next put up. Keep on on the brilliant work.
Thanks for the compliment. I’m not certain what you mean by seeing what the results are. We have been experiencing the results for a number of years.
On occasion they will try to extend these agreements to Korea or other areas but they seem to realize that discretion is the better part of valor and have reined in a bit. It seems they realize that the natives are unhappy.
I will return to the topic at some point but I usually post based on whatever is the latest insult to our collective intelligence. There is fierce competition for this honor, so I am all over the map, fulfilling my goal of making everyone angry at me. It appears I’ll have to try harder to put myself in your disfavor.
thanks for keeping me up to date on this issue.
I just went back and re-read the link that I posted. You are absolutely correct. There is a (-) in front of that $156 million. They actually had a credit! Sorry.
I put that mistake down to senility rather than a poor education.
By the way, I also missed the (-).
Well, then, I’ll assume it was for the same reason!
touche
According to this website:
http://money.cnn.com/galleries/2010/news/1004/gallery.top_5_tax_bills/2.html
Exxon Mobil made $15.1 billion last year, not $37 billion and paid $156 million in federal tax, $110 million in state and local taxes. That’s not much tax on $15.1 billion, but it’s more than zero. How do we get our share of the $15.2 billion they paid in international taxes?
BTW, Wal Mart paid $5.3 billion in federal tax and $677 million in state and local taxes, according to the same website.
The link you give says that not one cent of the taxes paid by Exxon went to the US Treasury.
Here is another source, based on Forbes:
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“Last week, Forbes magazine published what the top U.S. corporations paid in taxes last year. “Most egregious,” Forbes notes, is General Electric, which “generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.” Big Oil giant Exxon Mobil, which last year reported a record $45.2 billion profit, paid the most taxes of any corporation, but none of it went to the IRS:
Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi.”
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There are almost as many profit figures as sources. Their accounting is intentionally complex, with various ways of stating income, write-offs, one-time capital gains or losses. Their earnings were, according to Forbes, over $45 billion. Subtract $15 billion for taxes paid to other governments and the number is twice your stated $15 billion.
The numbers are so large that which one is correct, if any, is not that important. The point is that our government gives them breaks they can’t get from other countries. Even if your number of $156 million in federal taxes were correct, it would be only a small fraction of the percentage you and I pay. And, I forgot to give my family members their bonuses this year.
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