Paul Krugman: The interests of "American" corporations and the nation are less aligned than ever

[Better Believe It]

The Competition Myth
By PAUL KRUGMAN
January 23, 2011

.... let’s not kid ourselves: talking about “competitiveness” as a goal is fundamentally misleading. At best, it’s a misdiagnosis of our problems. At worst, it could lead to policies based on the false idea that what’s good for corporations is good for America.

But isn’t it at least somewhat useful to think of our nation as if it were America Inc., competing in the global marketplace? No.

Consider: A corporate leader who increases profits by slashing his work force is thought to be successful. Well, that’s more or less what has happened in America recently: employment is way down, but profits are hitting new records. Who, exactly, considers this economic success?

Still, you might say that talk of competitiveness helps Mr. Obama quiet claims that he’s anti-business. That’s fine, as long as he realizes that the interests of nominally “American” corporations and the interests of the nation, which were never the same, are now less aligned than ever before.

Take the case of General Electric, whose chief executive, Jeffrey Immelt, has just been appointed to head that renamed advisory board. I have nothing against either G.E. or Mr. Immelt. But with fewer than half its workers based in the United States and less than half its revenues coming from U.S. operations, G.E.’s fortunes have very little to do with U.S. prosperity.

Read the full article at:

http://www.nytimes.com/2011/01/24/opinion/24krugman.html?ref=paulkrugman

[xchrom]

1. recommend

[highplainsdem]

2. K&R

[OhioChick]

3. K&R n/t

[steve2470]

4. k and r nt

[harun]

5. I think Krugman was being nice here. Krugman correctly called that

Obama has basically ascribed the Reagan world view as valid. Which I doubt any of his voters desired. Nor do any of Obama's supporters agree with that view. For the SOTU the WH has basically prepared us for a big steamy pile of Reaganomics. Everything real economists like Krugman have been warning against. So I am thinking he had to hold back quite a bit just to get that piece.

[Smashcut]

6. Glad Krugman is calling out the "competitiveness" doublespeak that Obama and fellow corporate shills

like his appointee, Chief Executive Outsourcer Jeff Immelt are using to mask their agenda.

K/R

[unblock]

7. if only their registration is american, why should americans care so much about them?

many of these big and powerful corporations hire few americans, generate less revenue from america, and pay little to no taxes in america. so what's about the corporation IS american? the corporate registration. well, actually, just the corporate registration of the holding company or parent company. many of the subsidiaries are overseas, whether in tax havens or local to where the real revenue or raw materials are, or otherwise just to funnel product around in order to play tax games.

oh, and the ceo is american, too. and importantly, he engineers heavy contributions to carefully selected political campaigns.

[jwirr]

8. President Obama should consider the fact that the same organization

the gave him the Noble Peace Prize also selected Krugman for the economic award and listen to him.

[annabanana]

9. If they were really talkingabout AMERICAN corporations, there'd be

some sense to it. When the interests of large multinational corporations are set against the interests of the American people, the bottom line wins every time.

[kentuck]

10. Corporations depend upon our government for diplomacy...

...and agreements...and sometimes, military backing, to protect their interests.

In other words, they are dependent upon the taxpayers of America to protect their interests in foreign countries. If they get too far out on the limb, it can be sawed off...