In this fascinating story in the Wall Street Journal based on data from the Commerce Departmen, tover the 1990s, US Multi-National Corporations (MNCs) hired workers both in the US (4.4 million) and overseas (2.7 million). But over the 2000s, they actually cut jobs in the US (-2.9 million) and continued hiring overseas (2.4 million). US MNC’s employ about one fifth of all workers here (21.1 million ), about double what they employ overseas (10.3 million). As tragic as this job flight is, the real question is why. The large companies who responded claimed it wasn’t for cheap labor but for expansion into markets developing elsewhere. But the problems of dealing with the US tax code and our declining infrastructure and education system are not going to magically get better. As much as we should be worried, we should also be asking why they’re doing this rather than just lamenting the fact and scolding them for it.
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