2010: Highest Corporate Profits In History! Corporate Greed And Exploitation Of The American Worker!

Good Thing Obama Is Unfriendly To Business!

It has just been reported by the NYT that for the third quarter of 2010, corporate profit was the highest on record. Corporations have discovered that keeping leaner staffs and hiring few, if any workers is a winning combination! In a climate that the GOP characterizes as being unfriendly to business, how did this happen? Is it possible that President Obama is not as unfriendly as the conservatives have alleged? Perhaps the GOP is lying or if not, then maybe we have just witnessed a miracle? That must be it! Corporations have been so mistreated by the Obama administration that there must have been divine intervention to cause this incredible increase in corporate profits. That is the only reasonable explanation. Gotta love those miracles! This little miracle adds up to profits of 1.65 trillion dollars! It is the 7th consecutive quarter of record breaking profits.

Large corporations are sitting on their profits, not hiring new employees and it is being done to break the back of labor. Employees are all working harder, for less money, fewer benefits and tolerating work conditions that they never wou ld before because they are so afraid of losing their jobs. Everyone knows that a smaller staff under the current pressure to perform or leave means higher productivity and higher profit margins. In this climate, because employees fear being fired, they produce, produce, produce! Freezes on hiring when corporations are making the largest profits ever is a pretty nifty idea, especially when you are greedy and willing to exploit American workers and a high unemployment rate. There have been numerous reports of employees being asked to work overtime and even weekends without pay. They report that they are afraid to say no, for fear of being fired. There have been reports that safety conditions are being compromised as well. These tactics and others were employed by corporations many years ago before labor groups sprang up and began fighting back by organizing labor unions. Abuses like these were the reason for the birth of unions in this country.

Labor unions are blamed and villified in this country by many for being the cause of outsourcing. People have been told over and over again that because unions demand higher wages and benefits they have driven jobs overseas. Actually, those same people forget or don't even realize that people fought for and were even killed in their attempt to insure that all American workers would have safe and humane working conditions, as well as a livable wage and the end to American sweat shops that exploited thousands. Almost every single labor law in this country designed to protect all workers came from the labor movement. Even now, greedy corporations and their Washington lobbyists are behind the growing movement to repeal all minimum wage laws. Politicians have jumped on board. Next time you hear a politician suggest that minimum wage laws should be repealed, go to opensecrets.org and see where that politician is getting his or her political contributions from. Don't be surprised if you see donations from the most profitable companies in this country listed. The phrase 'free market' is changing in this country, and today seems to mean free of any government regulations including freedom from any labor protective or environmental laws. Regulations are being given as the cause of an 'unfriendly' business environment, creating a climate in which businesses can not thrive. That premise, based on these most recent profit statements, is clearly an indefensible position that carries little or no weight.

Investing In America! Corporations Plead Not Guilty!

Along with the highest profits ever recorded, it is being reported that the corporations making the largest profits are doing so by investing their labor budgets overseas. It is cheaper to pay foreign workers, the corporations pay no penalties in additional taxes, so it is a win-win for them and a losing proposition only to American workers that need jobs.

The Federal Government and most economists are stating that U.S. corporations are sitting on over 1 trillion dollars or maybe even 2 trillion dollars that they could be investing in the American labor force, but are not. If this trend continues unchecked, the Federal Reserve and economists project that American jobs will not come back. They further predict that the unemployment rate will stagnate well into 2012 and by then it is estimated that these same companies will be sitting on well over 3 trillion dollars.

Corporations have no reason to invest in America. Taxes from their overseas profits are deferred, they are able to pay third world wages, make incredible profits and suffer no recriminations from the American citizenry. When American workers wake-up and do a little bit of research, find out what corporations are shipping jobs overseas and then boycott the products and services of these companies, maybe the trend will cease. The American worker, even the unemployed American worker, still has power. They just don't realize it. The power of the boycott and negative publicity for corporations can drive business decisions. Employees will eventually get sick and tired of watching the companies they work for make enormous profits while taking advantage of their own labor force. Wake up, America!

Many of the most profitable corporations in this country are paying little to no taxes in this country. Among those that paid no taxes in 2009 are CitiGroup, Exxon, GE and Bank of America.

Obama Supports Tax To Recoup Bailout Funds!

Now that financial institutions have recovered from near extinction and are again reaping profits and giving multi-million dollar bonuses for the same questionable practices that caused the near financial collapse, President Obama has proposed a tax on the financial sector to repay the American taxpayer for the bailout. Companies like JP Morgan Chase and Bank of America are shocked and outraged at the mere suggestion! Conservatives who normally oppose welfare of any kind and who voted in favor of the bailout, are also mortified! They vehemently oppose these taxes on the one hand, but on the other, talk about how unnecessary and bad the bailout was. They blame the Obama administration for the Bailout of 2008, refusing even to acknowledge that this piece of legislation was passed during the Bush Administration. When pressed on the timeline, they use the Alzheimer's defense as strategy. Lucky for them that at least half of the American population have been stricken by the same illness! There must be some secret ingredient in the beverage they are drinking!

The GOP and others suggest that to penalize by use of the tax code is unheard of! Well, so was the bailout! While many people, however distateful it was, favored the bailout (it has been stated by almost every economist that it was necessary to avoid a depression and I agree), they oppose any tax on business, even if it is to repay the American taxpayer. These same people do not oppose that individual welfare recipients repay the government and taxpayer for the few hundred dollars a month they are given, yet they violently oppose this tax on financial institutions designed to repay the government for hundreds of billions of dollars. Corporate welfare vs. individual welfare? For some reason, the corporate welfare recipient wins! Blame Obama for the bailout and at the same time blame him for trying to insure that it is repaid. Makes sense to me!

Financial institutions that were saved by the bailout are vehemently opposed to the very thought of repaying the government. They insist that these costs will be passed on to the consumer. That is supposed to be a threat. Instead of the never-ending fees that these corporate giants impose on their beloved account holders, what will they do? Continue to charge never-ending fees? Quite a terrifying thought!

The Obama administration is not unfriendly to business. He is unfriendly, however, to the bad players that so often win the top honors for unethical and immoral greed. The American citizen is convinced they can have it both ways; Obama is friendly to big business, while at the same time, the biggest enemy of business. It is a dazed and nonsensical theory that the President wants business to fail, a theory possibly related to that very contagious Alzheimer's strain that is spreading throughout the country like the winter flu.

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Comments 8 comments

HSchneider 6 years ago from Parsippany, New Jersey

Great Hub. Corporate America has been sitting on this huge hoard of cash for over a year now. You are quite right that it is time for them to spend it now. It is natural for them to be overly cautious to do this after such a sharp downturn but the time has come. I think this holiday season spending will be robust so my hope is they will start doing so. If housing could get off the ground you will see this economy skyrocket no matter how miserly these corporate titans are. You are also right on about the tax system. Shifting profits offshore to avoid taxes here is just plain wrong and must be stopped. Also, to allow me to beat my dead horse, let those Bush tax cuts expire.


Jillian Barclay profile image

Jillian Barclay 6 years ago from California, USA Author

Good Morning, HSchneider! Thank you for your comments! Again, I second the expiration of the tax cuts, but that appears to be a very unpopular opinion. Finding anyone else in agreement is next to impossible! It is almost as difficult to make people believe that we are currently paying less in taxes than during most times in our history.

The fact that the largest corporations in our country pay little or no taxes is inexcusable! However, I don't see that changing anytime soon. The mere suggestion of closing loopholes or tightening up business tax regulations is just too 'unfriendly'.

Finally, my 8 year old granddaughter could end up being singlehandedly responsible for robust spending this holiday season! Told her to make me a wish list(mistake!) and it closely resembles the federal budget!

Thank you again!


bridledamerican profile image

bridledamerican 5 years ago

We continue to give answers in terms that completely miss the problem. The love of money is the problem. Many of the replies I see insenuate how wrong corporate America is, but neglect the same behavior amongst many Americans. The same cancer exists in our society on every level. The folks living off of the system have the same love of money and abuse it to survive. It boils down to being responsible for one another and not just myself. I am leaving a corporation I have worked for for a number of years. I can handle the cut in bonuses that have occurred if it was to better our nation as a whole. However, along with cutting compensation, the requirements of our job has increased. I'd rather work for a business owned by an individual who gives back to the community. We as Americans gave control to corporations by trying to find the least expensive in everything, which is greed. We sought to better our own quality of life by maximizing our dollars, did we not? We have spoiled ourselves with every amenity by doing this, but have empowered the very problem we rail against. Let's deal with the heart of the cancer and not band aid a symptom.


Jillian Barclay profile image

Jillian Barclay 5 years ago from California, USA Author

I agree to a point. Everyone wants to make enough money to adequately live and support our families; not necessarily get rich...

We all want our children to have advantages, food, education, medical care, etc. and most of us spend our lives working to support ourselves and families. Not all of us have to have every amenity. When corporate America seeks to profit by destroying the middle class, there is something wrong!

Corporate greed (banks, mortgage companies and hedge funds) destroyed our economy and put millions out of work. They have been rewarded for that by increased profits and power...


Justsilvie 5 years ago

Jillian your article are always an education. Thank You I look forward to reading more.


bridledamerican profile image

bridledamerican 5 years ago

Jillian, I commend you on being an American. However, you are becoming rarer in this nation. Let's be honest. Our government is supposed to be of the people and by the people. Day after day we hear our government dealing with issues that just don't matter when it comes to the bigger picture. I'm not going to get into a list in this blog. However, we have allowed this by making it all about me. Think about it. We need a voice that cries out against the insanity. If you fix the cancer that has developed out of the tremendous ease and convenience our society has allowed, you fix the problem as a whole. American pride needs to become American humility again. We need to prefer the person next to us to ourselves. That builds community, keeps greed from the heart, and keeps the focus on what is truly better for our nation. We need to love each other again and seek to better our neighbor. It's like the old saying, "It is better to give than to receive." Absolutely, we provide for our children. How many adults in our nation, though, put themselves first? Have you seen the bumper sticker that says the one who dies with the most toys wins? What is that? Greed. The cancer is in the heart.


Jillian Barclay profile image

Jillian Barclay 5 years ago from California, USA Author

Greed may be at the root of all of our problems. You are right, I fear. We no longer value other people--only so far as what they can do to help us get ahead and that is a cancer.

I hate the bumper sticker that you talk about. How do people enjoy all their 'toys', when 25% of our nation's children are living in poverty?

And in the end, the 'toys' don't matter when you are gone. What a legacy! The most toys!

Hopefully, we can get back some of what has been lost. The character, community, the generosity of spirit---just being decent people and caring about each other.


bridledamerican profile image

bridledamerican 5 years ago

Absolutely! Oh my goodness, does the smoke and mirrors need to stop. The insanity of Republican versus Democrat when both sides have the cancer. I am conservative through and through. I won't get into my life story, but I have felt the cancer on a deep personal level. I, however, decided to heal and realize what is happening. Many Americans feel the sting and they walk around wounded. I see folks who could have been more just wounded. Fear controls many of us today as greed is crippling our economic infrastructure. As simple and ridiculous as many would say my answer is, it is still the answer. Let's love each other again in this country. Let the naysayers squeak and do not respons. Make them work it out. If they fail, they fail. Failure realizes faults and brings success in the end. Let's support the heart and not the weakness and things will turn around.

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