Jobs, Offshoring, and the U.S. Budget Deficit

By Jack Rasmus

Jack Rasmus

What’s the connection between the 25 million still jobless today, US Multinational Corporations, and the estimated $1.6 trillion 2012 budget deficit?

The deficit and budget cutting have been given massive amount of attention in the public press. At least a dozen different proposals—from the Obama administration, Republicans in the House, Democrats in the Senate, deficit commissions, and others—are now debated daily. But as proposals and programs for deficit cutting at the expense of social programs proliferate, no one is discussing how creating jobs for the 25 million currently unemployed would essentially resolve the budget deficit and eliminate altogether the need to cut Social Security, Medicare, Medicaid, and other programs.

One of the major causes of current high, chronic levels of unemployment in the US is offshoring by US multinational corporations. Less well known, however, is that these same multinational corporations are a significant cause of not only millions of lost jobs, but of trillions of dollars of lost tax revenue as well—thus contributing significantly to current and future budget deficits.
Continue reading

Teapublicans, Timidcrats, and the $14.3 Trillion U.S. Federal Debt

by Jack Rasmus

Jack Rasmus

President Obama on April 13 gave another of his now notorious ‘maybe this/maybe that’ speeches. Raise taxes on the rich, he said. But in the same breath announced “everything’s on the table”. This time the subject was the U.S. debt and deficits, as he responded to the policy gauntlet thrown down by the ‘Teapublican’ party..

The previous Friday the Democrats blinked once again and then caved in once more to the Teapublican deficit cutting offensive. After several weeks of so-called ‘hard bargaining’ between the two parties in Congress, a compromise was reached. Some compromise. Two weeks ago the Democrats moved from their initial position of $6 billion in spending cuts to $11 billion, then moved their position a third time to $22 and finally a fourth time, with no Teapublican counter, to $38.5 billion. They ended up a mere $1.5 billion short of the position of House Speaker, John Boehner, and his fiscal wrecking crew’s initial $40 billion position at the outset of negotiations, thus earning themselves the new appellation of ‘Timidcrats’. As a former union contractor negotiator, this writer would love to face the Timidcrats across the bargaining table.

Continue reading