Invest in corporate America. Just don't work there
Today, there's a lot of hand-wringing over offshoring, disappearing pensions, and health benefits that deteriorate and cost more every year. But very few U.S. executives are asking much from Washington, or from anybody. That's because most U.S. companies are doing quite well—witness stock indexes like the S&P 500 that are approaching record highs—even if their American workers are worried about job security and finances. "There's a shift in the balance of power between workers and their companies," says Hira. "Nobody from industry is asking for help, because they're not losing anymore. They're taking." What they're taking, as everybody knows by now, is cheap, talented labor from low-cost countries like India and China. And that's one thing that helps American companies climb onto the Global 100 and stay there. "The fact that manufacturing jobs have been leaving the United States doesn't make us less competitive," says Dennis Nally, chairman of PricewaterhouseCoopers. "You could argue it makes us more competitive."
American companies that are struggling need to take even more from those helpful low-cost countries. What is good for General Motors these days is massive cost-cutting, to help reverse an enormous $10.6 billion loss in 2005 and keep the company afloat. And the way companies cut costs these days is by shipping any work that is transferable overseas and building stuff there, too. In the old days, of course, the fortunes of companies and their workers rose and fell in unison; manufacturers laid off U.S. workers when times were tough and rehired them when business picked up. But jobs that go overseas are gone forever, or at least until assembly line workers and engineers in China and India start to earn the same as their American counterparts. And that's not going to happen before the unemployment insurance runs out.Companies exist to make money, not to keep people employed. But U.S. companies can increasingly make money while bypassing American workers. "The fate of U.S. workers is no longer part of corporate decision making," says Hira. That sounds ominous, yet for Americans with the energy to get off the couch and pay attention, it's an opportunity. Those who are creative, entrepreneurial, well educated, and able to consistently learn the latest skills will thrive. But if you have the choice, it's probably better to be a stockholder of corporate America than an employee.
Percentage of U.S. patents earned by corporations
| 1995 | 2004 | |
| United States | 55 | 51 |
| Japan | 21 | 22 |
| Germany | 7 | 7 |
| France | 3 | 2 |
| United Kingdom | 2 | 2 |
| Canada | 2 | 2 |
| Taiwan | 2 | 4 |
| South Korea | 1 | 3 |
Source: U.S. Patent and Trademark Office
advertisement
