How’s that Offshoring Working for Ya?

The claim first made ten years ago and repeated by Republican and Democratic administrations that corporate offshoring would increase domestic employment turned out to be a painful hoax perpetrated on American workers.

Matthew Slaughter, a Dartmouth College Tuck School of Business professor and an economic advisor to George W. Bush, touted the universally accepted globalist mantra that “for every one job that U.S. multinationals created abroad…they created nearly two U.S. jobs in their [U.S.-based] parents.” Today, Slaughter admits his error. In the meantime unemployed, indebted, and foreclosed Americans pay the price for the federal government’s folly.

Despite the current administration’s ongoing rhetoric to the contrary, few well-paying jobs will be created near term. U. S. corporations find it more lucrative to do business overseas.

Here’s the evidence. According to a report issued July 27 by Moody’s Investor Services, U.S. non-financial corporate cash holdings rose to $1.24 trillion at the end of 2010 with nearly half of the total on deposit abroad. Apple, Inc., Microsoft Corp., Cisco Systems, Inc., Pfizer Inc., and Google, Inc. held the largest amounts of cash. The huge sums reflect the growing strength of major corporations’ international operations.

Based on a Moody’s internal survey, the agency concluded that: “We believe companies will keep this cash outside the U.S. as they pursue international acquisitions, invest in their own overseas operations or await tax breaks on overseas earnings they bring back to the U.S.”

Read More at Floyd Reports By Joe Guzzardi, Floyd Reports