Dow Chemical Co. and the Saudi Arabian Oil Co. said Saturday that they signed an agreement that advances their plan to build one of the world's biggest chemical plants in Saudi Arabia. The $20 billion complex is expected to begin production in 2015.
The two companies agreed to a joint venture for Sadara Chemical Co., which will own the plant being built in the desert kingdom. The companies estimate it will generate about $10 billion in revenue annually within a few years of operation.
Dow and Saudi Aramco together are investing about $12 billion, and a portion of Sadara will be sold to shareholders in a public offering in 2013 or 2014. The complex, with 26 manufacturing units, will be the largest integrated chemical facility ever built in one go, the companies said.
( Canadian Business)
In Febuary 2012 unemployment was up to 8.3
( United States bureau of labor statistics)
http://data.bls.gov/timeseries/LNS14000000
Argument: if a big company like this moved to America they'd be force higher americans and thus decrease Unemployment
2. Companies using tax loops
Our government is in knots over ways to lower the federal budget deficit. Well, what if we told you we found a pot of money - over $60 billion a year - that could be used to help out?
That bundle is tax money not coming in to the IRS from American corporations. One major way they avoid paying the tax man is by parking their profits overseas. They'll tell you they're forced to do that because the corporate 35 percent tax rate is high in relation to other countries, and indeed it seems the tax code actually encourages companies to move their businesses out of the country.
( Cbs news 2011)
Let’s remember how we got here. Long before the recession, jobs and manufacturing began leaving our shores. Technology made businesses more efficient, but also made some jobs obsolete. Folks at the top saw their incomes rise like never before, but most hardworking Americans struggled with costs that were growing, paychecks that weren’t, and personal debt that kept piling up.
In 2008, the house of cards collapsed. We learned that mortgages had been sold to people who couldn’t afford or understand them. Banks had made huge bets and bonuses with other people’s money. Regulators had looked the other way, or didn’t have the authority to stop the bad behavior.
It was wrong. It was irresponsible. And it plunged our economy into a crisis that put millions out of work, saddled us with more debt, and left innocent, hardworking Americans holding the bag. In the six months before I took office, we lost nearly 4 million jobs. And we lost another 4 million before our policies were in full effect.
Those are the facts. But so are these: In the last 22 months, businesses have created more than 3 million jobs. (Applause.)
Last year, they created the most jobs since 2005. American manufacturers are hiring again, creating jobs for the first time since the late 1990s. Together, we’ve agreed to cut the deficit by more than $2 trillion. And we’ve put in place new rules to hold Wall Street accountable, so a crisis like this never happens again. (Applause.)
The state of our Union is getting stronger. And we’ve come too far to turn back now. As long as I’m President, I will work with anyone in this chamber to build on this momentum. But I intend to fight obstruction with action, and I will oppose any effort to return to the very same policies that brought on this economic crisis in the first place. (Applause.)
No, we will not go back to an economy weakened by outsourcing, bad debt, and phony financial profits. Tonight, I want to speak about how we move forward, and lay out a blueprint for an economy that’s built to last -– an economy built on American manufacturing, American energy, skills for American workers, and a renewal of American values.
Now, this blueprint begins with American manufacturing.
On the day I took office, our auto industry was on the verge of collapse. Some even said we should let it die. With a million jobs at stake, I refused to let that happen. In exchange for help, we demanded responsibility. We got workers and automakers to settle their differences. We got the industry to retool and restructure. Today, General Motors is back on top as the world’s number-one automaker. (Applause.) Chrysler has grown faster in the U.S. than any major car company. Ford is investing billions in U.S. plants and factories. And together, the entire industry added nearly 160,000 jobs.
We bet on American workers. We bet on American ingenuity. And tonight, the American auto industry is back. (Applause.)
What’s happening in Detroit can happen in other industries. It can happen in Cleveland and Pittsburgh and Raleigh. We can’t bring every job back that’s left our shore. But right now, it’s getting more expensive to do business in places like China. Meanwhile, America is more productive. A few weeks ago, the CEO of Master Lock told me that it now makes business sense for him to bring jobs back home. (Applause.) Today, for the first time in 15 years, Master Lock’s unionized plant in Milwaukee is running at full capacity. (Applause.)
So we have a huge opportunity, at this moment, to bring manufacturing back. But we have to seize it. Tonight, my message to business leaders is simple: Ask yourselves what you can do to bring jobs back to your country, and your country will do everything we can to help you succeed. (Applause.)
We should start with our tax code. Right now, companies get tax breaks for moving jobs and profits overseas. Meanwhile, companies that choose to stay in America get hit with one of the highest tax rates in the world. It makes no sense, and everyone knows it. So let’s change it.
First, if you’re a business that wants to outsource jobs, you shouldn’t get a tax deduction for doing it. (Applause.) That money should be used to cover moving expenses for companies like Master Lock that decide to bring jobs home. (Applause.)
Second, no American company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas. (Applause.) From now on, every multinational company should have to pay a basic minimum tax. And every penny should go towards lowering taxes for companies that choose to stay here and hire here in America. (Applause.)
Third, if you’re an American manufacturer, you should get a bigger tax cut. If you’re a high-tech manufacturer, we should double the tax deduction you get for making your products here. And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers. (Applause.)
So my message is simple. It is time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America. Send me these tax reforms, and I will sign them right away. (Applause.)
We’re also making it easier for American businesses to sell products all over the world. Two years ago, I set a goal of doubling U.S. exports over five years. With the bipartisan trade agreements we signed into law, we’re on track to meet that goal ahead of schedule. (Applause.) And soon, there will be millions of new customers for American goods in Panama, Colombia, and South Korea. Soon, there will be new cars on the streets of Seoul imported from Detroit, and Toledo, and Chicago. (Applause.)
I will go anywhere in the world to open new markets for American products. And I will not stand by when our competitors don’t play by the rules. We’ve brought trade cases against China at nearly twice the rate as the last administration –- and it’s made a difference. (Applause.) Over a thousand Americans are working today because we stopped a surge in Chinese tires. But we need to do more. It’s not right when another country lets our movies, music, and software be pirated. It’s not fair when foreign manufacturers have a leg up on ours only because they’re heavily subsidized.
Tonight, I’m announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trading practices in countries like China. (Applause.) There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. And this Congress should make sure that no foreign company has an advantage over American manufacturing when it comes to accessing financing or new markets like Russia. Our workers are the most productive on Earth, and if the playing field is level, I promise you -– America will always win. (Applause.)
I also hear from many business leaders who want to hire in the United States but can’t find workers with the right skills. Growing industries in science and technology have twice as many openings as we have workers who can do the job. Think about that –- openings at a time when millions of Americans are looking for work. It’s inexcusable. And we know how to fix it.
Jackie Bray is a single mom from North Carolina who was laid off from her job as a mechanic. Then Siemens opened a gas turbine factory in Charlotte, and formed a partnership with Central Piedmont Community College. The company helped the college design courses in laser and robotics training. It paid Jackie’s tuition, then hired her to help operate their plant.
I want every American looking for work to have the same opportunity as Jackie did. Join me in a national commitment to train 2 million Americans with skills that will lead directly to a job. (Applause.) My administration has already lined up more companies that want to help. Model partnerships between businesses like Siemens and community colleges in places like Charlotte, and Orlando, and Louisville are up and running. Now you need to give more community colleges the resources they need to become community career centers -– places that teach people skills that businesses are looking for right now, from data management to high-tech manufacturing.
( President Obama's state of the Union speech)
( White house. gov)
3. American debt
NEW YORK (CNNMoney) -- If you owed somebody a lot of money, let's say for the sake of argument nearly $900 billion, you probably wouldn't want to make this creditor angry, right?
( Cnn 2010)
Con
1. Will not cause Companies to come to America
Pushing to keep big corporations honest, labor groups regularly smuggle photographs, videos, pay stubs, shipping records and other evidence out of factories that they say violate local law and international worker standards. In 2007, factories that supplied more than a dozen corporations, including Wal-Mart, Disney and Dell, were accused of unfair labor practices, including using child labor, forcing employees to work 16-hour days on fast-moving assembly lines, and paying workers less than minimum wage. (Minimum wage in this part of China is about 55 cents an hour.)
In recent weeks, a flood of reports detailing labor abuse have been released, at a time when China is still coping with last year’s wave of product safety recalls of goods made in China, and as it tries to change workplace rules with a new labor law that took effect on Jan. 1.
No company has come under as harsh a spotlight as Wal-Mart, the world’s biggest retailer, which sourced about $9 billion in goods from China in 2006, everything from hammers and toys to high-definition televisions.
( New york times 2008)
President Obama has backed raising the U.S. basic wage from its current $7.25 an hour to $9.50 and indexing future automatic increases to inflation. Many economists cite a growing divide between rich and poor.
The federal minimum wage rate applies everywhere except in states that set higher minimum rates. Currently, 18 states have minimums higher than the federal rate and 23 have the same requirement. Some jobs, such as on small farms, are exempt from minimum wage rules.
Last month, the minimum wage automatically rose in eight states — Arizona, Colorado, Florida, Montana, Ohio, Oregon, Vermont and Washington — that index it to cost-of-living increases.
This week, bills were introduced to boost the minimum wage from $7.25 to $8.50 in New York and from $8.25 to $9.75 in Connecticut, indexing further increases to inflation. Seven other states —New Jersey, Delaware, Hawaii, Illinois, Massachusetts, California and Missouri — are also weighing basic wage increases.
"People in California are having a hard time keeping up with inflation and paying for basic living expenses," says Assemblyman Luis Alejo, who introduced California's bill.
Paul Sonn of the National Employment Law Project says the federal minimum should be raised to $10 to make up for the failure to keep pace with inflation in the 1970s. Since the recession began, he says, the inflation-adjusted salaries of low-wage workers have fallen 2.3%. "We really need to rebuild the middle class," he says.
About 1.8 million of the USA's 73 million hourly workers earned the federal minimum wage in 2010 — many in the retail, restaurant and hospitality sectors — but many more earning slightly more also would benefit from an increase to $10. Noting low-wage workers spend nearly all of their extra income, the Economic Policy Institute estimates such an increase would generate an extra $20 billion in economic output and 160,000 jobs.
( Usa today 2012)
arguement: why would Companies could to America over a ten percent tax when they could stay in a country they barely have to pay their workers instead of paying their workers mininum wage in America
issan Motor Co., Ltd., today announced financial results for the first half of fiscal year 2010, ending March 31, 2011, as well as second-quarter performance. In the six months through September, net income after taxes totaled 208.4 billion yen (US $2.34 billion, euro 1.83 billion), an increase of 199.4 billion yen compared with the same period last year.
Net revenues were 4.3191 trillion yen (US $48.58 billion, euro 37.95 billion) in the April-to-September period, up 27.7% compared with a year ago. Operating profit was 334.9 billion yen (US $3.77 billion, euro 2.94 billion), and operating profit margin came to 7.8%. Ordinary profit was 315.1 billion yen (US $3.54 billion, euro 2.77 billion).
In the first half, Nissan sold 2,009,000 vehicles worldwide, up 23.8% compared with last year.
"Our first-half results demonstrate that Nissan's recovery efforts are working effectively," said Nissan President and CEO Carlos Ghosn. "Our balance sheet is strong, and our momentum is trending in the right direction. In the second half, a wave of innovative product launches will continue to fuel Nissan's profitable growth."
In the July-to-September second quarter, Nissan's net income was 101.7 billion yen (US $1.18 billion, euro 920 million). Net revenues were 2.2689 trillion yen (US $26.41 billion, euro 20.5 billion), up 21.4% compared with a year ago. Operating profit was 167 billion yen (US $1.94 billion, euro 1.51 billion), and operating profit margin came to 7.4%. Ordinary profit was 160.1 billion yen (US $1.86 billion, euro 1.45 billion).
Nissan sold 1,055,000 vehicles in the second quarter, up 17.1% compared with the prior year.
In fiscal year 2010, Nissan will launch 10 all-new products globally. The second half will feature seven introductions, including the affordable, 100% electric, zero-emission Nissan LEAF that will be launched in Japan and the United States from December 2010.
Based on a foreign-exchange rate assumption of 80 yen/dollar and 110 yen/euro for the second half of fiscal year 2010, the revised average rates will be 84.4 yen/dollar and 111.9 yen/euro for fiscal year 2010. Nissan has revised upward its full-year forecast for fiscal 2010 and filed the following forecast with the Tokyo Stock Exchange for the fiscal year ending March 31, 2011:
- Net revenues of 8.77 trillion yen (US $103.91 billion, euro 78.37 billion);
- Operating profit of 485 billion yen (US $5.75 billion, euro 4.33 billion);
- Ordinary profit of 450 billion yen (US $5.33 billion, euro 4.02 billion);
- Net income of 270 billion yen (US $3.2 billion, euro 2.41 billion);
- Capital expenditures of 340 billion yen (US $4.03 billion, euro 3.04 billion); and
- R&D expenses of 425 billion yen (US $5.04 billion, euro 3.8 billion).
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total January exports of $180.8 billion and imports of $233.4 billion resulted in a goods and services deficit of $52.6 billion, up from $50.4 billion in December, revised. January exports were $2.6 billion more than December exports of $178.2 billion. January imports were $4.7 billion more than December imports of $228.7 billion. In January, the goods deficit increased $2.4 billion from December to $67.5 billion, and the services surplus increased $0.3 billion from December to $14.9 billion. Exports of goods increased $1.9 billion to $128.6 billion, and imports of goods increased $4.3 billion to $196.1 billion. Exports of services increased $0.7 billion to $52.2 billion, and imports of services increased $0.4 billion to $37.3 billion. The goods and services deficit increased $5.0 billion from January 2011 to January 2012. Exports were up $12.9 billion, or 7.7 percent, and imports were up $18.0 billion, or 8.4 percent.
lthough globalization is widely recognized these days, the U.S. economy actually remains relatively closed. The vast majority of goods and services sold in the United States is produced here. In 2010, imports were about 16% of U.S. GDP. Imports from China amounted to 2.5% of GDP.
Table 1
Import content of U.S. personal consumption expenditures by category
Table 1 shows our calculations of the import content of U.S. household consumption of goods and services. A total of 88.5% of U.S. consumer spending is on items made in the United States. This is largely because services, which make up about two-thirds of spending, are mainly produced locally. The market share of foreign goods is highest in durables, which include cars and electronics. Two-thirds of U.S. durables consumption goes for goods labeled “Made in the USA,” while the other third goes for goods made abroad.
Chinese goods account for 2.7% of U.S. PCE, about one-quarter of the 11.5% foreign share. Chinese imported goods consist mainly of furniture and household equipment; other durables; and clothing and shoes. In the clothing and shoes category, 35.6% of U.S. consumer purchases in 2010 was of items with the “Made in China” label.
Local content of “Made in China”
Obviously, if a pair of sneakers made in China costs $70 in the United States, not all of that retail price goes to the Chinese manufacturer. In fact, the bulk of the retail price pays for transportation of the sneakers in the United States, rent for the store where they are sold, profits for shareholders of the U.S. retailer, and the cost of marketing the sneakers. These costs include the salaries, wages, and benefits paid to the U.S. workers and managers who staff these operations.
Table 1 shows that, of the 11.5% of U.S. consumer spending that goes for goods and services produced abroad, 7.3% reflects the cost of imports. The remaining 4.2% goes for U.S. transportation, wholesale, and retail activities. Thus, 36% of the price U.S. consumers pay for imported goods actually goes to U.S. companies and workers.
This U.S. fraction is much higher for imports from China. Whereas goods labeled “Made in China” make up 2.7% of U.S. consumer spending, only 1.2% actually reflects the cost of the imported goods. Thus, on average, of every dollar spent on an item labeled “Made in China,” 55 cents go for services produced in the United States. In other words, the U.S. content of “Made in China” is about 55%. The fact that the U.S. content of Chinese goods is much higher than for imports as a whole is mainly due to higher retail and wholesale margins on consumer electronics and clothing than on most other goods and services.
( Federal Reserve Bank of San francisco)
argument: America can not afford to damage it's trading relations
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