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Gibson begins: "If you put long hours and hard work into a job, would you be upset with a boss who paid you with a handful of nickels, especially if hundred-dollar bills spilled out of your boss's pockets while he dug around for the coins?"

House Republicans unveiling their 'Plan for America's Job Creators,' 05/26/11. (photo: RNC Blog)
House Republicans unveiling their 'Plan for America's Job Creators,' 05/26/11. (photo: RNC Blog)



"Job Creators" Aren't Doing Their Job

Carl Gibson, Reader Supported News

07 January 12


Reader Supported News | Perspective

 

f you put long hours and hard work into a job, would you be upset with a boss who paid you with a handful of nickels, especially if hundred-dollar bills spilled out of your boss's pockets while he dug around for the coins?

As taxpayers, Americans expect to get what they pay for - safe infrastructure, prompt emergency response, good schools, and a strong social safety net. As shareholders in profitable companies, investors expect to get what they pay for - dividends. And as job seekers in a troubled economy, America's unemployed are trying to find work wherever they can; but corporate greed is depriving taxpayers, shareholders and job seekers of what they need and deserve.

With $2 trillion at home and $1.4 trillion abroad, corporations are sitting on record-high piles of cash. For example, Apple holds $76 billion by itself, more than the U.S. Treasury. Yet these hoards of cash remain untaxed. A 35% tax on corporate America's cash reserves in the United States alone would generate $700 billion in revenue. That amount would reverse every budget cut in every state, rejuvenating America's schools and infrastructure by re-creating almost a half-million public sector jobs lost since the recession.

If corporations simply invested their American stash of cash reserves in creating good jobs for America's unemployed, they could put 3.5 million new people to work in the private sector each year for five years, at an annual salary of $40,000. If corporations just used their cash reserves to pay dividends to their shareholders, investors like the Mississippi Public Employees Retirement System wouldn't have to cut benefits for their retirees.

Corporate executives blame the "uncertainty" of the economy as an excuse to sit on piles of cash, yet the economic boost of 17.5 million jobs created in five years would dramatically lower the unemployment rate and increase GDP, bolstering local economies by creating a surge of new demand for struggling small business owners. Using cash reserves to pay dividends to shareholders would restore confidence in the market and strengthen the investments millions are counting on for their retirement.

It is both greedy and irresponsible for American corporations to allow untaxed cash to pile up on their balance sheets while American infrastructure crumbles, public education suffers, the unemployed struggle to survive, and shareholders lose their investments. It's time for America's "job creators" to do their job.


Carl Gibson, 24, of Lexington, Kentucky, is a spokesman and organizer for US Uncut, a nonviolent, creative direct-action movement to stop budget cuts by getting corporations to pay their fair share of taxes. He graduated from Morehead State University in 2009 with a B.A. in Journalism before starting the first US Uncut group in Jackson, Mississippi, in February of 2011. Since then, over 20,000 US Uncut activists have carried out more than 300 actions in over 100 cities nationwide. You may contact Carl at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.

 

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+75 # Kayjay 2012-01-07 13:26
There's no doubt that these greedy corporate rats are now looking abroad to bolster their profits. They have been shipping jobs overseas for decades, to pad their bottom line. And now that there are fewer wage earners in the US, those corporations will look overseas markets to sell their crap. It's a lot like the cigarette manufacturers, less smokers in America, well sell the coffin nails to foreigners. As to their practice of sitting on vast piles of cash, it's a crime that it goes untaxed. Greedy corps are good at playing this game, because that's what fascists do. Let's get together and Un-Ayn Rand America!!!
 
 
+12 # doneasley 2012-01-08 12:55
There's no doubt that we're talking here about a slew of Greedy Bastards!

Between 2000 and 2009, our multinational companies CUT 2.9 million jobs in the United States and ADDED 2.4 million jobs overseas. In 2010, 1.3 million jobs were created in the US and 1.4 million overseas!

Oh, by the way, Ayn Rand who espoused the no-government-b enefits philosophy and made devout converts of people like Paul Ryan and most other libertarian conservatives (Ron Paul's son, Rand, is named after her), took her SOCIAL SECURITY benefits and enrolled in MEDICARE when she became eligible. The current Republican philosophy that thinks of most of the public as "parasites", while saying people with tons of cash are "producers" who should govern, is a philosophy based on the admiration of a psychopath.

America, we've been suckered, and will continue to be as long as young Rand fanatics - like Ryan, the Budget Director - are in control!!!
 
 
+1 # RLF 2012-01-10 05:17
The reason its hurting more now is because they are starting to export white collar jobs. No one gave a damn as long as it was just manufacturing jobs leaving. I'm really tired of this BS I keep hearing from the left and the right, that the manufacturing jobs are never coming back...well that is only true in a spiral of people making less and less money, so they buy cheaper and cheaper things. Give them higher salaries and produce higher quality and they will buy it. We need to get American off of the disposable merry-go-round.
 
 
0 # boudreaux 2012-01-13 07:59
Quoting RLF:
The reason its hurting more now is because they are starting to export white collar jobs. No one gave a damn as long as it was just manufacturing jobs leaving. I'm really tired of this BS I keep hearing from the left and the right, that the manufacturing jobs are never coming back...well that is only true in a spiral of people making less and less money, so they buy cheaper and cheaper things. Give them higher salaries and produce higher quality and they will buy it. We need to get American off of the disposable merry-go-round.



I don't know how congress is going to get anything done in the future when they are only working themselves 160 days a year, how can anyone produce anything with those hours, and they still make the same amount of pay grade, me thinks they should have their pay slashed for not doing what they are supposed to do, which I haven't figured out yet....
 
 
0 # Michael Lee Bugg 2012-01-10 09:10
I tried to give you a 'thumbs up' on my iPhone but the symbols are too small and too close together so I took one away, but you hit the nail right on the head! A republican I know in Paducah used to tell me with a straight face that "greed is good" and that the outrageous compensation of most Fortune 500 CEOs "is just the supply and demand for CEO talent"! If ignorance was bliss this country would in fact be Nirvana!
 
 
+73 # Barbara K 2012-01-07 14:55
I heard a report several months ago that that the Republicans had asked the so-called "job creators" to hold off hiring until after the election. Certainly looks like that's what many are doing. Tax the livingdaylights out of any products brought into the country. Charge the tax as soon as the crap hits the shores. Meanwhile, let's get some smart people together and start all over with our own manufacturing businesses, make them worker-owned and have profit sharing. We started from scratch before and we can do it again. Leave the big corps right out of whole thing. We don't need them, we have lots of brainy people looking for work. Sell American produced products right here in America, where we appreciate quality.

NEVER VOTE REPUBLICAN !!
 
 
+30 # Patch 2012-01-07 20:33
Barbara K I read your comments after a lot of articles and always agree with you. This one is particularly insightful as is the article itself. Thanks. And yes,

NEVER EVER VOTE REPUBLICAN!!
 
 
-3 # RLF 2012-01-10 05:19
Americans appreciate quality??? Not sure what planet you're living on but the last time I looked crap was king.
 
 
+25 # Billy Bob 2012-01-07 15:35
I expect MidwestTom to weigh in here.

If you agree with this article you don't agree with ron paul.
 
 
-38 # MidwestTom 2012-01-07 15:44
There is simply tooo much cash, thanks to the Fed.
 
 
+24 # Billy Bob 2012-01-07 16:21
Where is all of the cash? I'm not swimming in it. Maybe some of this surplus cash could actually be put to work for the common good.

Serious question: Would you propose ending the fed? What would you replace it with?
 
 
+9 # soularddave 2012-01-07 21:46
State Banks, maybe?
 
 
+4 # jwb110 2012-01-08 10:59
Quoting soularddave:
State Banks, maybe?

State Chartered Banks would be a great idea!
 
 
+14 # Texas Aggie 2012-01-07 19:36
What exactly is the connection between corporations sitting on their profits instead of investing them and the Fed? The Fed doesn't tell corporations what to do with their money. The corporations themselves made the decision to just sit on it and invest in government bonds instead of spending the money. Trying to connect this problem to the Fed shows a certain lack of rational thinking ability.
 
 
+9 # Billy Bob 2012-01-07 20:39
It shows a pre-determined agenda.
 
 
+10 # soularddave 2012-01-07 21:59
I agree, but the question is: Who's agenda? Many Corporations seem to have an agenda that includes throwing wads of money at super PACs, lobbyists and legislative elections; remember Iowa? There seems to be a concerted effort to bring down Obama, and keeping the economy stalled is entirely what we've been talking about.

By luck, my personal economy didn't go in the dumper, so I eat out almost every night and only at owner-run restaurants and tip the waitresses well. These are REAL people, and we appreciate each other.
 
 
-3 # jwb110 2012-01-08 11:05
Quoting Texas Aggie:
What exactly is the connection between corporations sitting on their profits instead of investing them and the Fed? The Fed doesn't tell corporations what to do with their money. The corporations themselves made the decision to just sit on it and invest in government bonds instead of spending the money. Trying to connect this problem to the Fed shows a certain lack of rational thinking ability.

The relationship is that the Fed makes pushes money into a system that is not making jobs. It makes the wealthy wealthier and cheapens that buying value of the dollar for the average American. Given that the dollar has no backing, save as a reserve currency because of the pegging of the price of oil to the dollar, suppose that oil gets pegged to another currency? This is the reason the US cannot get out of the MIddle East. Our presence gives the dollar backing based on a commodity that doesn't even exist in our own country.
 
 
0 # Billy Bob 2012-01-08 21:14
How would you propose backing the dollar instead?
 
 
+53 # mrbadexample 2012-01-07 16:07
I've always found it quite confounding that Apple (and the other computer and phone manufacturers) have never faced any sort of backlash for putting virtually all their production in slave-labor countries in Asia. It's not like the 'savings' are being put into lower prices--in most cases the difference between an American made phone and one from China is a few dollars, nearly offset by the shipping and other extra expenses from moving products 4,000 miles.
I helped cause ruckuses in shoe stores and such when there were no US made products on their shelves, but the electronics companies are far worse. The savings are going into fatter dividend checks for the stockholders, not lower prices for US consumers. the CEO's need to be 'Mike Checked' at stockholder gatherings. They're destroying the US market--a nation of Walmart greeters and 'hospitality specialists' (the fancy way of saying 'waiters' and 'hotel maids') are not going to be able to buy all the new toys.
 
 
+28 # angryspittle 2012-01-07 16:17
Those corps won't spend the money unless there are customers for their products. The only job creators are consumers with money in their pockets. Problem: How do we get it from the corps and into the pockets of the real job creators?
 
 
+1 # RLF 2012-01-10 05:23
These a corps that are too big to take over. All of this cash on the shelf would make a smaller co. a take over target. Maybe the fed should take over the corps. and take the cash the way take over artists on Wall st. do...they are the only ones with the cash.
 
 
+37 # walt 2012-01-07 16:26
All part of the "greed is good" mentality, most often found in those companies that fight to keep unions out and have minimum wages for their workers!

John Boehner and all his miserable GOP are liars when they perpetrate the "job creator" nonsense on the public. They will defend the greedy 1% to the death. They must be making out well in lobby money. However, let's hopefully witness the demise of their party that stands firm against the people!

The time has come!
 
 
+2 # MidwestTom 2012-01-07 16:44
Carl should have taken a few courses in economics. Hiring more employees is the last thing that corporations want to do. They only hire when they have to. If they hire people for jobs that do not increase or maintain the productivity, then management comes under fire. Corporations have a lot of cash, but with a few obvious exceptions they also have a lot of debt. most small companies are worried because their lines of credit are shrinking, and major corporations with cash are looking for ways to profitably deploy it. Unfortunately, most of the profitable opportunities today are overseas. Casio used to build tv's in Arkansas, until they could not compete. Murphy used to build bicycles in Illinois, until they could not compete. Unfortunately in a free trade world the American hourly worker will only get the difference in freight between China and the states in his wages, which will not be much. He cannot afford to live a decent life on those wages, so he goes on unemployment and then welfare. As the trend continues the country will at some point be unable to sustain the unemployed who want a decent paying job. We all be come slaves to the NYC bankers,, who with their billions now control everything. The way to real change will be major price adjustments, and it will come after a VEY painful period.
 
 
+5 # PGreen 2012-01-08 13:01
A tax on corporate reserves is an interesting idea, but it might drive the money into other areas-- international hidden accounts and executive bonuses so large that our current ones would seem like lunch money by comparison. Businesses, of course, hire in response to demand, not tax incentives.
The economy might be helped by splitting these puppies up, something we keep forgetting we can do. There are other possibilities to consider-- a carbon tax-- an environmental tax-- a sweatshop tax-- etc. (Yes these are protectionist, but the right kind of protectionism.)
 
 
+4 # BradFromSalem 2012-01-08 19:55
Tom,

We don't have Free Trade. There are tax incentives for American corporations to hire out labor as a service contract. Those 3rd party corporations then hire the labor to perform the service, also at a tax advantage. Additionally, those other countries provide internal incentives to attract labor, sometimes by totally violating the concept of Free Trade.

The game is rigged for labor to lose on all counts. Lose jobs, lose salary if they keep the jobs, and lose benefits. Its true that American companies are not hiring because there is not enough demand, but Free Trade is a false argument.
 
 
0 # ericlipps 2012-01-09 07:58
Quoting MidwestTom:
. . . Corporations have a lot of cash, but with a few obvious exceptions they also have a lot of debt. most small companies are worried because their lines of credit are shrinking, and major corporations with cash are looking for ways to profitably deploy it. Unfortunately, most of the profitable opportunities today are overseas. Casio used to build tv's in Arkansas, until they could not compete. Murphy used to build bicycles in Illinois, until they could not compete. Unfortunately in a free trade world the American hourly worker will only get the difference in freight between China and the states in his wages, which will not be much...


If being "ab;e to compete" means paying less than China pays workers who know they can go to concentration camps if they dare ask for more (or may already be working in such camps), we're sunk. That kind of "competition" isn't just a race to the bottom, it's a race to see who can dig deepest through the bedrock to create a new bottom. "Winning" such a contest would make us a rich nation full of peons in rags--whch is pretty much the recipe for revolution.
 
 
+16 # MidwestTom 2012-01-07 17:04
What should be done? Un hindsight we should have let the banks fail, thus flushing a lot of wealth from the top 1%, but we saved them. To rapidly correct things we need to truly fix the derivative game by limiting 'insurance' to ones exposure, thereby shrinking the market by roughly 80 percent. Making the market transparent does not take away the risk in a $610 TRILLION dollar game. We then have to correct the society wrongs of the past 30 years and impose a one time tax of 90 percent on all personal assets above $10 million dollars. Finally we have to return to some kind of gold standard to limit currency growth, and balance the Federal budget. I am not one to turn the Fed over to our politicians, but it should not have a monopoly. The NYC bankers and the Fed that they own do not have the best interest of America in their hearts, most of them hold dual citizenship, and the more one learns about our banking system, the more one realizes how much of a slave EVERYBODY is to them and their money.
 
 
+25 # cmcook41 2012-01-07 17:31
The only jobs created by GOP "job creators" are jobs for lobbyists.
 
 
+12 # Kolea 2012-01-07 23:24
And pool boys. Don't forget about pool boys.
 
 
+22 # uglysexy 2012-01-07 17:32
Job Creators = Wealth Hoarders. Small Government=Unre gulated Corporate Rule
 
 
+19 # Patch 2012-01-07 20:38
Unregulated Corporate Rule = Fascism.
 
 
+11 # cypress72 2012-01-07 17:33
If my understanding of accounting is correct, Apple (and any corporation for that matter) accumulates cash AFTER they have paid taxes. Apple's $76 billion is what's left after all expenses and taxes have been paid. This money has been accumulating over years. Their corporate finance department probably issues commerical paper which is bought by other corporations to finance their operations. When the commercial paper market froze in 2008, we had the start of the financial meltdown. Corporations could not get short-term financing to fund their day to day operations. That's what caused the collapse of Lehman. Apple could buy next weeks entire US Treasury auction which amounts to $66 billion !!!! That's some pile of cash !!
 
 
+16 # Ken Hall 2012-01-07 18:40
If the money is generated overseas, corporations don't pay taxes until the money is brought into the US, a useful tax dodge for them. Their friends in Congress periodically give them tax immunity so the money can be brought in without benefit to the Treasury. It's very profitable to have friends in high places.
 
 
+6 # reiverpacific 2012-01-07 20:04
Quoting cypress72:
If my understanding of accounting is correct, Apple (and any corporation for that matter) accumulates cash AFTER they have paid taxes. Apple's $76 billion is what's left after all expenses and taxes have been paid. This money has been accumulating over years. Their corporate finance department probably issues commerical paper which is bought by other corporations to finance their operations. When the commercial paper market froze in 2008, we had the start of the financial meltdown. Corporations could not get short-term financing to fund their day to day operations. That's what caused the collapse of Lehman. Apple could buy next weeks entire US Treasury auction which amounts to $66 billion !!!! That's some pile of cash !!

Ah, there's the rub: what taxes????
 
 
+15 # bigelowrs 2012-01-07 18:01
All of you guys have forgotten what the Supreme Court says: Corporations are people! They can give tons of money to their flacks in Congress, and ship all their jobs overseas.
Um...wait a minute. If they are people, why don't they have any patriotic spirit?
Why don't they DEMAND that American workers should not be laid off so that foreign workers can take their jobs?
Could it be that they are NOT people after all?
 
 
+15 # abdullahiedward 2012-01-08 01:13
Unfortunately, most of the so-called "job creators" i.e. company executives/owne rs, are Republican and being true blue dyed in the wool memebrs of the GOP they are duty bound, by party affiliation, to make sure that Obama fails so that one of their ilk will win the next election. It doesn't matter to them thst millions of Americans are suffering because of it. This shows you the true state of Americas so called "Democracy" in action!
As someone has so aptly put it earlier- "NEVER VOTE REPUBLICAN"!
 
 
-2 # Martintfre 2012-01-08 09:57
The mindless prattel
- they are all bad - we are all good is equally lame to hear from either republicans or democrats.

But both parties lust for the unearned mindless adoration.

Quoting abdullahiedward:
Unfortunately, most of the so-called "job creators" i.e. company executives/owners, are Republican and being true blue dyed in the wool memebrs of the GOP they are duty bound, by party affiliation, to make sure that Obama fails so that one of their ilk will win the next election. It doesn't matter to them thst millions of Americans are suffering because of it. This shows you the true state of Americas so called "Democracy" in action!
As someone has so aptly put it earlier- "NEVER VOTE REPUBLICAN"!
 
 
-18 # Martintfre 2012-01-08 09:43
Government can not create jobs, but it can destroy them with taxes, regulations and economic uncertainty as the taxes and regulations shift weekly.

Only government can operate at a loss - they can stick a gun in the 'customers' (tax payers) face and make them pay more or a more subtle theft of printing money and expanding debt.

The sum of good government is to be limited to protecting person and property - otherwise staying the hell out of the way.

People support the government - government does not support the people with out taking from some to give to others.
 
 
-6 # elmont 2012-01-08 11:54
I usually read Gibson for a laugh, but this time I got more than I expected. As a bonus, there is the commenter who can't spell ["prattel?" huh?], but can hit all the usual wingnut notes right in tune with Ayn Rand. C'mon, Carl, a 35% tax on corporate reserves? Should I pay a similar tax on my savings account? Should you? It's one thing to argue against a system that bails out malefactors of wealth and doesn't compel some kind of churning of the payouts into the lending economy, it's another thing altogether to argue that the government should take a third of all corporate reserves (for whatever benevolent purpose). Besides being just a plain wrong idea, it would do little other than send the rest of corporate earnings overseas.
 
 
+4 # Tippitc 2012-01-08 14:43
"Boner" and Cantor are too busy working on their tans and combing their hair to get any work done!!
 

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