American Corporations Getting Rich Abroad
Belief:
Why I Want to Turn Religious People Into Atheists
Greta Christina
Corporate Accountability and WorkPlace:
Don't Fear the Deficit Bogeyman
John Miller
DrugReporter:
The War on Weed: Marijuana Is Basically Harmless -- The Monumentally Stupid Drug War Is Not
Jim Hightower
Environment:
White House Garden Won't Make Up for Obama's Nomination of Pesticide Lobbyist for US Chief Agriculture Negotiator
Jill Richardson
Food:
Don't Be Scared of Food: Are We Being Needlessly Hysterical About Food Safety?
David E. Gumpert
Health and Wellness:
47,000 Women Could Die As a Result of the New Mammogram Guidelines
George Lakoff
Immigration:
Hate Group, FAIR, Is Looking for "Ethnically Ambiguous" Actors to Amplify Its Racism
Adam Luna
Media and Technology:
The Memory Scrub About Why Ft. Hood Happened Is Almost Complete ... If It Weren't for Archives
Mark Ames
Movie Mix:
The Yes Men: Pranksters Out to Fix the World
Mark Engler
Politics:
White House's Ties to Health Care Industry Deeper Than Visitor Records Show
Daniela Perdomo
Reproductive Justice and Gender:
Why Can't We Look Away From Sarah Palin?
Vanessa Richmond
Rights and Liberties:
Citing "National Defense Needs," Obama Administration Says it Won't Sign Ban on Land Mines
Amy Goodman
Sex and Relationships:
Hot Mormon Muffins and Models for Jesus: What's With All the Sexy Christians?
Liz Langley
Take Action:
G-20 Meetings: Nothing Much Happened in the Suites, and There Was Too Much Punch in the Streets
Laura Flanders
Water:
Poseidon's Financial Shell Game: Why Is a Private Desalination Plant Asking for Public Money?
Peter Gleick
World:
Is Obama Following in the Footsteps of Bill Clinton?
Jeff Cohen
I'm spending my spare time these days debating supply-siders who are convinced that the record-breaking Dow proves the correctness of the Bush tax cuts.
Yes, the Dow did reach a record high last month. But the Commerce Department also reported that economic growth slowed to its weakest pace in four years. How can investors do so well while the real economy is doing so poorly? My supply-side friends don't have an answer, but I do.
It's because of two great decouplings that have occurred in recent years. First, the rest of the worlds' major economies have decoupled from the United States' economy. China, India, Japan and Europe are now such large markets, they can grow briskly even as America slows.
Second, America's largest corporations have decoupled from the United States. Their overseas subsidiaries are booming even as their American operations stagnate. General Electric expects more than half its revenue this year to come from outside the United States for the first time. More than half of Boeing's new orders are from overseas. Ford is struggling in America but doing well in Europe.
In other words, the president's supply-side tax cuts are great for America's global investors, who have been investing their extra money around the world -- either in foreign companies or in global American-based ones.
But little or nothing is trickling down to average working Americans. Half of U.S. households do own some shares of stock, usually through their IRAs or 401Ks. But the vast majority own less than $5,000 worth. Their equity is in their homes, whose values have slumped. They're paying far more for health insurance and fuel. And their wages haven't kept up.
Bottom line: The Bush tax cuts have delivered for Wall Street but done zilch for America's Main Streets.
See more stories tagged with: corporations, economy, fda
Robert Reich is professor of public policy at the Richard and Rhoda Goldman School of Public Policy at the University of California, Berkeley. He was secretary of labor in the Clinton administration.
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