Dismissing Racist Explanation

 

Recently there has been some fluff that we couldn’t find American workers to build a new integrated circuit plant. Our workers say it is because they are not getting enough money. Boomers bemoan:

-Our kids are too dumb to get the jobs we used to have.

Depend on Americans to find the racist reason even when it is against us. Foreign workers may get less than citizens, but that is not enough for a business decision, particularly on a subsidized plant.

As I explain in this blog in Income Disparity and Bribes, in 1969 America removed discretionary fund as an accounting entry. This has several consequences. Companies moved the amount in that entry to executive compensation, so it is now after tax. Piketty’s book Capital in the Twenty-First Century has a graph showing executive compensation on an upward diagonal from 1970 on. CEOs used to get ten times base earnings. Take the difference then apply the tax rate gives us the total compensation, for the bribes and kickbacks required for business. Moving kickbacks out of sales and into management has dramatically increased right-wing fund raising. Politics provides cover for payments.

This has also impacted hiring. Arthur Anderson would come in over the top, but most hiring is decided at middle management. It looks odd for the CEO of a large temp or placement company to directly solicit managers. Foreign companies with the accounting discretionary fund entry have advantage in the American market. As Trump says:

-Foreigners can bribe us; Americans can’t bribe them.

You would think that American ingenuity could overcome this pettifoggery. Simply pass the money to sales. Such practice cements the clique. Without the accounting subordinates take advantage and abuse their position.