Being a political junkie, I watched my usual Sunday political talk shows this morning. The "flavor of the month" topic was, of course, federal deficit reduction. As usual, everyone - moderators, pundits, analysts, subject matter experts, politicians, and former politicians - used the word "entitlements" when referring to federal expenditures for the poor, middle class, young, and elderly, the "unwealthy," of this nation. These expenditures include things like Social Security, Medicare, Medicaid, health insurance for the uninsured, and federal tuition assistance programs. The word "benefits," however, seems to be the word most commonly used when referring to federal expenditures for the rich and multinational corporations. These expenditures include things like tax cuts for those making over $250K per year, and tax incentives for multinational corporations.
What's the big deal? "Entitlements," "benefits" - who cares? As Shakespeare wrote in Hamlet (1602), "...many wearing rapiers are afraid of goose-quills...," or as playwright Edward Bulwer-Lytton wrote, "The pen is mightier than the sword." I believe this applies to the spoken word, as well. Repeat a word or phrase enough in a particular way, and it will begin to sound true and believable. For example, the word "entitlement" is used in a way to imply something that one feels entitled to without necessarily being deserving of, such as a "free ride," or a "handout." On the other hand, the word "benefit" is used in a way to imply something that has been earned, and therefore, is deserved, such as a "bonus," or a "dividend." The more we hear these words used in these ways, the more we tend to believe them to be true.
Take the example of the General Electric Corporation. In 2010, GE earned over $14 billion in profits worldwide. However, it paid $0 in US taxes for 2010. Supposedly, this was due to the fact that GE claimed losses in the US, although it was profitable in the global economy and had to pay taxes to other countries. Therefore, GE reasoned, the multinational corporation rightfully received a tax "benefit" from the US by not paying one cent in US taxes.
GE, along with Deloitte & Touche, IBM, Morgan Stanley, Goldman Sachs, Microsoft, Texas Instruments, SBC, and Verizon were among the top outsourcers of U.S. jobs beginning in the year 2000. Research turns up virtually no information on the number of US jobs that have been outsourced, and the G. W. Bush administration assisted in this lack of information by requiring no federal reporting of outsourced corporate US jobs. (Ed. note: My research yielded no new legislation in this area, leading to the conclusion that there are still no federal reporting requirements at present.)
What we're left with are concrete examples of outsourcing, such as GE's closing of its last incandescent light bulb factory in Winchester, VA, in 2010, the same year that it paid no US taxes. Incandescent lighting, according to federal law, must be phased out by 2014 because it is less energy efficient than newer, greener technology, such as compact fluorescent lighting (CFLs.) However, although GE could have retooled its Winchester factory to produce green technology light bulbs, it chose to close the factory and outsource its jobs to China, a communist country where there are cheaper labor costs and less environmental controls. Adding insult to injury, GE also chose to blame the US federal government for the closing of its Winchester plant, claiming that GE was a victim of the new federal law.
According to wealthy multinational corporations, and the politicians who reap large corporate contributions for their campaigns, this is why we should feel sorry for companies like GE and give them a tax "benefit," while cutting "entitlements," for the middle class worker, the poor, the young, and the elderly. As voters and consumers, we can be the final judges. As voters, we can work for and vote for candidates who care less about big corporate contributions, and more about what's right and good for the American people. As consumers we can vote with our dollars at stores, farmers' markets, and online by buying "Made in USA" goods and products.
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This Week's Recommended Product:
Viking appliances - Made in USA by Viking Range Corp, Greenwood, MS (http://www.vikingrange.com/consumer/index.jsp)
Ed. note: Since GE is known and widely purchased in the US as both a household lighting and an appliance brand, I wanted to find companies that make household light bulbs and appliances in the USA, but was unable to find companies making household light bulbs in the US. If you find any, please post to the blog.
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