The imbalance of trade
Corporations, which are benefiting financially from the new global marketplace and cheaper labor in foreign nations, are simply not giving back to local communities with increased fervor. Corporate giving in 2002 declined over the previous year when adjusted for inflation. But not only are corporations not giving enough back to communities; many transnational corporations aren't paying enough in taxes. A study released in 2001 found that multinational corporations avoided paying $45 billion in U.S. taxes for the previous year.
The initial response of the Bush administration to the rising national debate over trade policy and international business labor practices has been to refer to those seeking a balanced trade policy as economic isolationists, as if there were no middle way in pursuing American interests. And they've suggested that the United States benefits from "insourcing" more than it loses from outsourcing. However, the administration neglects to point out that what it calls insourcing is foreign investment in the United States necessary to gain access to our $11 trillion economy.
Outsourcing of American jobs has nothing to do with access to foreign markets. It has to do only with reducing labor costs for multinationals. This is a time for clear thinking on the part of our policymakers--not sad efforts to distort an important debate in a presidential election year.
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