American Corporations Getting Rich Abroad

[EV_Ares]

By Robert B. Reich, TomPaine.com.

America's largest corporations' overseas subsidiaries are booming even as their American operations stagnate. General Electric expects more than half its revenue this year to come from outside the U.S. for the first time.

I'm spending my spare time these days debating supply-siders who are convinced that the record-breaking Dow proves the correctness of the Bush tax cuts.

Yes, the Dow did reach a record high last month. But the Commerce Department also reported that economic growth slowed to its weakest pace in four years. How can investors do so well while the real economy is doing so poorly? My supply-side friends don't have an answer, but I do.

It's because of two great decouplings that have occurred in recent years. First, the rest of the worlds' major economies have decoupled from the United States' economy. China, India, Japan and Europe are now such large markets, they can grow briskly even as America slows.

Second, America's largest corporations have decoupled from the United States. Their overseas subsidiaries are booming even as their American operations stagnate. General Electric expects more than half its revenue this year to come from outside the United States for the first time. More than half of Boeing's new orders are from overseas. Ford is struggling in America but doing well in Europe.

(((rest of the article @ link below:)))

http://alternet.org/workplace/51399/

[SammyWinstonJack]

1. k&r

:grr: