Sunday, November 19, 2017

Corporate Tax Cuts Never Equals Jobs

A primary tenant of corporate philosophy is to obtain as much productivity out of as few human workers as possible. They love cutting wages, benefits and relocating to a less expensive labor market. So the question is: why would a corporation invest a tax cut in the creation of jobs? The answer: they wouldn't.

They know how much they are willing to pay, how many people are required to meet production quotas. If they truly needed more labor to expand production, they would borrow the money, as they always have. Higher wages is a perpetual cost. Therefore the corporate managers seek to lower the wages as far as possible regardless of the detriment to their labor force.

Businesses paid off legislators to vote on "right to work" laws that circumvent collective bargaining. They support elimination of overtime pay rates. They support lowering or eliminating minimum wage rates. All of this financial dickering shifts the cost of living to people who are not part of the corporate shareholder family.

Along with laws to facilitate the reductions of compensation for employees, the corporate culture is working hard to lower or eliminate corporate taxes. In short they don't want to pay the cost of living for their workers by any means.

If a tax cut did not exacerbate deficit spending and an increase in the National Debt it would be far more palatable. In the past, make-a-believe Economists claimed the debt could expand as long as it was less than the growth of the GDP. The double trouble is the growth of debt far exceeds the growth of the GDP. And most of the actions taken by Congress slashes the spending which does contribute to the GDP. A trillion dollar reduction in tax funded spending is a trillion dollars lost by the large corporate entities. Why aren't they complaining?


All corporate entities are aligned together against all Labor. Labor loses when they cannot use collective bargaining like the corporation do. The only hope is to vote out the perpetrators who take from the working class and give to the wealthy class.

No comments: